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Employment Rights Act 2025: what changes and when — Articles

The Employment Rights Act 2025 received Royal Assent in early 2025 and is being brought into force in stages. This article tracks every major change, the date it takes effect, and what it means in practice for employees and employers in England and Wales.

In force: April 2026

Day-one unfair dismissal right

The two-year qualifying period for ordinary unfair dismissal has been reduced to three months of continuous employment. After three months, an employee cannot be dismissed without a potentially fair reason and a fair procedure. During the first three months (the "initial period"), employers may dismiss for capability, conduct, or redundancy without the full statutory process — but must still give written reasons and act in good faith. Automatically unfair reasons (whistleblowing, pregnancy, trade union activity) continue to carry no qualifying period at all. The right is in Employment Rights Act 1996, s.94 as amended. ACAS has updated its guidance on the new probationary period dismissal procedure. See the unfair dismissal guide for the current claim process.

Fire and rehire restrictions

Dismissal and re-engagement (commonly called "fire and rehire") as a means of imposing new contractual terms is now an automatically unfair reason for dismissal, except in a genuine financial crisis where the employer has followed the new ACAS Statutory Code of Practice on Fire and Rehire. Compensation is uncapped for employees dismissed for asserting their rights against fire and rehire.

Zero-hours guaranteed-hours right

Workers on zero-hours or low-hours contracts who have worked regular hours for 26 consecutive weeks have the right to request a guaranteed-hours contract reflecting their average pattern. Employers must respond within one month; refusal is only permitted on specified operational grounds. Separate provisions require reasonable notice of shifts (minimum 72 hours under the implementing regulations) and compensatory payment if a shift is cancelled or curtailed with less than the required notice. See the zero-hours rights article for a full breakdown.

Flexible working: enhanced right

The right to request flexible working from day one (in force since 2023) is strengthened. Employers must now consult for a minimum of seven days before refusing and must give reasons from a reduced list of five statutory grounds (down from eight). A request must be decided within two months. ACAS has published updated guidance.

In force: October 2026

Collective redundancy: expanded notification duties

The threshold for collective consultation has been lowered: employers proposing to make 10 or more redundancies at one establishment within 90 days must now notify the Insolvency Service (via form HR1) and consult elected employee representatives, regardless of the total workforce size. Previously the threshold was 20. The minimum consultation period remains 30 days (45 days for 100+). Breach carries a protective award of up to 90 days' gross pay per affected employee. See the redundancy rights article for what this means for individual employees.

Trade union access rights

Trade unions with a recognition agreement gain a new statutory right of access to the employer's premises for the purposes of recruiting and organising members, subject to reasonable conditions. Employers cannot unreasonably refuse access. The right is enforceable through the Central Arbitration Committee.

Coming: 2027

Single worker status

The Act provides a power to introduce a single "worker" status replacing the current three-tier framework (employee / worker / self-employed). Consultation on the implementing regulations was launched in autumn 2026 with implementation expected in 2027. This is the most structurally significant change — it will affect millions of gig-economy workers currently classified as self-employed.

Equality: ethnicity and disability pay gap reporting

Employers with 250+ employees will be required to publish ethnicity pay gap and disability pay gap data from April 2027, mirroring the existing gender pay gap reporting obligations under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. The Equality and Human Rights Commission is preparing guidance.

What workers should do now

If you were dismissed within three months of starting work after 6 April 2026, you may now have an unfair dismissal claim that did not exist under the old rules — contact ACAS for Early Conciliation immediately. The three-month tribunal clock runs from your effective date of termination. If you work irregular hours and have done so consistently for six months, you can request a guaranteed-hours contract now. The full commencement timetable is published on legislation.gov.uk.

This article is for general information only and is not legal advice. Always check the official source and consult a qualified lawyer for your situation.