UK employment law: the Employment Rights Act 2025 employer guide
The Employment Rights Act 2025 is rolling out in stages through 2027, alongside separate UK changes to minimum wage, right-to-work checks, holiday pay and IR35. This hub covers the 8 changes that matter most for employers, with a full timeline of what's changing and when. Two changes started on 1 October 2026: tribunal claim time limits doubled, and right-to-work checks widened. Next, stronger harassment duties start on 30 October 2026.
The 8 changes that matter most
Each topic explains the change, when it lands, and who handles it if you hire through Teamed.
ExpectedBereavement leaveFrom April 2027 the government intends employees to have a day-one right to up to two weeks of unpaid bereavement leave after the death of a close relative, or after a pregnancy loss before 24 weeks. Until the regulations are made, only bereaved parents have a statutory right to bereavement leave.April 2027 (government's stated intention; regulations not yet made)
Confirmed dateEmployment Rights Act 2025: what's changing and whenThe Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is rolling out in stages through 2027. Trade union reforms landed first, day-one family leave and sick pay changes followed in April 2026, and the biggest wave, unfair dismissal reform, lands 1 January 2027, with fire-and-rehire restrictions now planned for March 2027.Next major wave: 1 January 2027 (unfair dismissal reform); fire-and-rehire now March 2027
ExpectedFire and rehire restrictionsThe government now plans for the fire and rehire limits to start in March 2027, moved from 1 January 2027. From then, dismissing an employee and re-engaging or replacing them to force through a worse core contract term will be automatically unfair, with no qualifying service required and uncapped compensation. A narrow exception applies only where the business faces severe financial difficulty.March 2027 (government target; no commencement instrument yet)
ExpectedFlexible working requestsEmployees can already ask for flexible working from their first day. On the government's current timeline, from October 2027 an employer can refuse only where it is reasonable to do so on a listed ground, and must first hold a meeting with a view to reaching an agreement.October 2027 (government timeline; regulations not yet made)
In forceHoliday pay and rolled-up holiday payIrregular-hours and part-year workers accrue statutory holiday at 12.07% of hours worked, and rolled-up holiday pay, an uplift added to every payslip, is lawful for these workers. Since April 2026 employers must also keep six years of holiday records, and failing to do so is a criminal offence. A consultation on how the Fair Work Agency will police holiday pay closed on 22 September 2026.1 April 2024 (rules in force); 6 April 2026 (new record-keeping duty)
In forceIR35 (off-payroll working) vs Employer of RecordUnder IR35, a medium or large UK client must determine a contractor's tax status and the fee-payer runs PAYE if the engagement is inside IR35. A 2024 offset mechanism fixed a double-taxation problem, and small-company exemption thresholds rose in 2025. Hiring someone as an Employer of Record employee from the start avoids the question entirely; moving an existing at-risk contractor onto an EOR does not erase exposure HMRC can still investigate from before the switch.6 April 2024 (offset mechanism); 6 April 2025 (raised small-company thresholds)
In forceNational Minimum Wage and National Living Wage 2026From 1 April 2026 the National Living Wage (21+) is £12.71 an hour, the 18-20 rate is £10.85, and the 16-17 and Apprentice rates are both £8.00. April 2027 rates have not been announced: the Low Pay Commission had published no recommendations as at 21 October 2026, and the Autumn Budget is set for 28 October 2026.1 April 2026
In forceRight to work checks and sponsorshipSince 1 October 2026 right-to-work checks have not been an employees-only duty: they also cover people engaged under a worker's contract, individual sub-contractors, and online matching services, for engagements starting on or after that date. Checks themselves run through the Home Office online service, physical Biometric Residence Permits are no longer acceptable, and getting a check wrong can cost up to £60,000 per worker for repeat breaches.1 October 2026 (checks extended to workers, individual sub-contractors and online matching services)
In forceStatutory Sick Pay (SSP) 2026 changesSince 6 April 2026, SSP is payable from the first day of sickness absence instead of the fourth, and the Lower Earnings Limit was scrapped so every employee qualifies. Low earners get 80% of average weekly earnings; the flat rate for 2026-27 is £123.25 a week.6 April 2026
Confirmed dateUnfair dismissal: the qualifying-period changeThe qualifying period for ordinary unfair dismissal falls from two years to six months on 1 January 2027, and the compensation cap is removed the same day. Coverage depends on the dismissal date, not the hire date: anyone dismissed on or after 1 January 2027 needs only six months' service.1 January 2027
Fire and rehire limits pushed back to March 2027
What happened
On 22 October 2026 the government updated its plan for when each change starts. The limits on fire and rehire moved from January to March 2027. New flexible working rules are now planned for October 2027.
What it means for you
The six month rule for unfair dismissal claims still starts on 1 January 2027. Plan for both changes now. Plan dates can still move, so check back.
Dates to know
- 30 October 2026Stronger rules on sexual harassment start.
- 1 January 2027Staff can claim unfair dismissal after six months of work, not two years.
- March 2027Planned start of the fire and rehire limits.
- October 2027Planned start of new flexible working rules and more job protection for new mothers.
Source: GOV.UK, Department for Business and Trade. We check this page every week. Last checked .
UK employment law is going through its biggest overhaul in a generation. The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is commencing in stages: trade union reforms and day-one family leave notice rights in early 2026, day-one paternity and parental leave plus Statutory Sick Pay reform in April 2026, electronic and workplace balloting in August 2026, a doubling of the employment tribunal claim time limit to six months on 1 October 2026, the strengthened harassment duties from 30 October 2026, and the largest single wave, cutting the unfair dismissal qualifying period to six months, on 1 January 2027, with fire-and-rehire restrictions now planned for March 2027. Two further measures gained stated timings in September 2026: bereavement leave, including pregnancy loss before 24 weeks, is intended for April 2027, and flexible working reform for autumn 2027, which the government's timeline now puts in October 2027. Alongside the Act, the National Minimum and Living Wage rose again in April 2026, right-to-work checks have moved to a digital eVisa system and widened on 1 October 2026 to cover workers, individual sub-contractors and online matching services, holiday pay rules for irregular-hours workers now carry a strict record-keeping duty, and IR35 continues to shape the choice between engaging UK contractors directly and using an Employer of Record. Commencement dates have slipped more than once, most recently when fire-and-rehire moved from January to March 2027 on 22 October 2026, so this cluster is reviewed regularly and dates are checked against primary sources.
The big picture
The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is commencing in stages through 2027. As of 28 October 2026, measures already in force include trade union reforms, day-one family leave, Statutory Sick Pay reform, electronic trade union balloting and, since 1 October 2026, a six-month time limit for employment tribunal claims. The strengthened harassment duties start on 30 October 2026, a date fixed in law by SI 2026/1065. The biggest wave is 1 January 2027 (unfair dismissal reform); fire-and-rehire restrictions moved to March 2027 in the government's timeline update of 22 October 2026. Of the measures still without a fixed date, the timeline puts bereavement leave in April 2027 and flexible working reform in October 2027, while guaranteed hours has no stated timing.
Why is UK employment law changing so much right now?
The Employment Rights Act 2025 is the government's flagship labour-market reform, covering unfair dismissal, fire-and-rehire, sick pay, family leave, zero-hours contracts and more in a single Act. Rather than commence all at once, it is being rolled out in stages through 2027, so different rules take effect on different dates.
What should employers focus on first?
The changes already in force, day-one family leave, Statutory Sick Pay reform, and the current minimum wage rates, need to be reflected in contracts and payroll now. Since 1 October 2026 the tribunal claim time limit has been six months, and right-to-work checks have covered more than employees. Next, the stronger harassment duties start on 30 October 2026. The January 2027 unfair dismissal change is the biggest still to come, with fire-and-rehire restrictions following in March 2027; both are worth preparing for well in advance. Further out, bereavement leave is planned for April 2027 and flexible working reform for October 2027.
What Teamed handles in the UK
- Contracts updated as reforms land
- PAYE, National Insurance and pensions
- Right-to-work checks and sponsorship risk
Frequently asked questions
Is the Employment Rights Act 2025 in force yet?
Partly. It received Royal Assent in December 2025, and several measures are already in force. The tribunal claim time limit doubled to six months on 1 October 2026, the stronger harassment duties start on 30 October 2026, and the largest change, unfair dismissal reform, is set for 1 January 2027. Fire-and-rehire restrictions are now planned for March 2027, bereavement leave for April 2027 and flexible working reform for October 2027.
Where can I see exactly what's changing and when?
The timeline page on this hub lists every confirmed and expected milestone in date order, with a source for each and a note on who handles it if you hire through Teamed.
Do these pages give legal advice?
No. They summarise the current position with primary sources, reviewed as the law changes. For a specific situation, Teamed's HR and legal experts can advise, or speak to ACAS or a qualified professional.
The Employment Rights Act 2025 is the biggest overhaul of UK employment law in a generation, and it lands in stages. When Teamed is your legal employer, we hold that complexity: compliant contracts, policies and payroll in the UK, updated as each measure actually commences.
