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Employment Rights Act 2025: Are You Ready For The Changes Ahead?

Employee Act

Sep 4, 2026

The Employment Rights Act 2025 is introducing some of the most significant changes to UK employment law in recent years. Designed to strengthen employee protections and modernise workplace rights, the reforms are being implemented in stages throughout 2026 and 2027, giving employers time to prepare for the changes ahead.

For businesses like yourselves, this is an opportunity to review employment policies, management practices and workplace procedures to ensure they remain fit for purpose. However, with Employment Tribunal claims already on the rise, it is important to understand not only what is changing, but what the changes could mean for your organisation.

Key Employment Rights Act 2025 changes and important dates

Changes already introduced

February 2026

  • Simplified trade union requirements and industrial action processes.
  • Enhanced protections for employees participating in lawful industrial action.

April 2026

  • Statutory Sick Pay (SSP) became payable from day one of absence, with the lower earnings threshold removed.
  • Employees gained day-one rights to Paternity Leave and Unpaid Parental Leave.
  • Bereaved Partner’s Paternity Leave was introduced.
  • Protective awards for collective redundancy breaches increased.
  • Whistleblowing protections relating to sexual harassment were strengthened.
  • The Fair Work Agency was established to support enforcement of workers’ rights.

Upcoming changes

By 31 August 2026

  • Electronic and workplace balloting for statutory trade union ballots.

From 1 October 2026

  • Employment Tribunal claim time limits will double from three months to six months, allowing employees longer to bring claims.
  • In the event of “unfair dismissal claims” Employees can claim unfair dismissal after working for 6 months instead of the current 2 years.
  • Fire & Rehire: Firing workers to rehire them on worse terms will become illegal in most cases.

From 30 October 2026

  • New trade union workplace access rights.
  • A duty on employers to inform workers of their right to join a trade union.
  • Enhanced rights for workplace representatives.
  • Employers will be required to take “all reasonable steps” to prevent workplace sexual harassment.
  • New obligations relating to harassment by third parties, including customers, suppliers and clients.

From 1 January 2027

  • Reforms to unfair dismissal protections, including a shorter qualifying period and removal of the compensatory award cap.

What do these changes mean for employers?

The overall direction of travel is clear: greater employee protection, increased employer accountability and stronger enforcement of workplace rights.

For your business, this means reviewing whether your employment contracts, staff handbooks, grievance procedures, absence management processes and manager training are up to date. You may also wish to consider how you evidence compliance, particularly in areas such as harassment prevention, where you may need to demonstrate that proactive and reasonable steps have been taken to protect your employees.

The extension of Employment Tribunal time limits is another important consideration. With employees having longer to bring claims, robust record-keeping and consistent decision-making will become increasingly important.

Employment claims are already increasing

These changes are being introduced at a time when employment disputes are already becoming more common.

According to Ministry of Justice statistics, Employment Tribunal single claim receipts increased by 23% during 2024/25, while the open caseload rose by 32%, indicating a growing number of workplace disputes entering the tribunal system.

The trend continued throughout 2025. Ministry of Justice figures show Employment Tribunal receipts increased by a further 33% year-on-year in the July to September 2025 quarter, while open caseloads also continued to rise.

Analysis of HMCTS data found that unfair dismissal, breach of contract and disability discrimination were among the most common claim types, with disability discrimination claims showing notable growth during 2025.

Against this backdrop, many businesses are reviewing their employment practices, HR procedures and broader risk management arrangements to ensure they are prepared for a changing regulatory landscape.

How Employment Practices Liability Insurance could assist your business

Periods of legislative change can create uncertainty, even for organisations with well-established HR practices. As employee rights evolve, employers may face a greater risk of allegations relating to unfair dismissal, discrimination, harassment or failures to follow employment procedures.

For this reason, it may be worth reviewing whether your existing Management Liability Insurance arrangements remain appropriate for your business. Employment Practices Liability Insurance (EPLI), which is typically provided as part of a Management Liability Policy, may help protect your business against the financial impact of employment-related claims. Subject to policy terms, conditions and exclusions, cover may include legal defence costs and compensation awards arising from certain employment disputes. The availability, scope and limits of cover will vary depending on the insurer, policy wording and individual circumstances. 

Insurance should never be viewed as a replacement for effective people management, robust HR processes or compliance with employment law and businesses should seek professional HR or legal advice where appropriate. However, when combined with regular training, clear workplace policies and professional HR support, it can form part of a broader risk management strategy and provide reassurance that your business has additional protection in place should an employment-related dispute arise.

If you would like to discuss how Management Liability Insurance, including Employment Practices Liability cover, could support your business, speak to our team today.

Important: The information contained in this article is intended as general information only and does not constitute legal, regulatory or professional advice. Employment legislation may change and businesses should refer to official Government guidance or seek professional advice relevant to their circumstances. 

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Luke Stevenson

Luke Stevenson

Regional Director

Adler Fairways