The Employment Rights Act 2025: what aspiring lawyers need to know

Answer

Summary: The Employment Rights Act 2025 introduces major reforms to UK employment law, with changes taking effect between 2026 and 2027. Key measures include expanded statutory sick pay eligibility, day one rights to paternity and parental leave, strengthened trade union access, tougher anti-harassment requirements and longer employment tribunal time limits. The act also reforms unfair dismissal rules, introduces bereavement leave and restricts NDAs, creating new compliance obligations for employers. 

The Employment Rights Act 2025 (ERA/the act) is set to transform the UK employment law landscape. For aspiring lawyers, it’s essential to understand the scope and impact of the reforms introduced by the act. 

What’s the ERA?    

The ERA received royal assent in December 2025 and forms a central part of the government’s ‘Plan to Make Work Pay’ agenda. It’s intended to deliver the most significant enhancement of workers’ rights in a generation. 

The act’s implementation is phased across 2026 and 2027. While the ERA establishes the overarching legislative framework, many of its provisions remain subject to consultation, guidance and secondary legislation. Aspiring employment lawyers should continue to monitor this area closely as the reforms take effect. 

Key reforms 

April 2026 

Statutory sick pay (SSP) 

Previously, to be eligible for SSP, employees were required to earn above the Lower Earnings Limit (LEL). If eligible, employees were paid from the fourth qualifying day of absence (ie, there were three 'waiting days'). 

From 6 April 2026, the LEL has been removed and SSP is payable from the first qualifying day of absence.  

Paternity and parental leave 

Previously, both the right to statutory paternity leave and the right to statutory parental leave were subject to continuity of service requirements of 26 weeks and one year, respectively. 

From 6 April 2026, the ERA has removed the service requirements for statutory paternity leave and statutory parental leave (ie, they’re now 'day one' rights). 

Trade unions 

The ERA introduces wide-ranging reforms to trade union legislation, seeking to strengthen trade union powers and increase their visibility in the workplace.  

From 6 April 2026, the trade union 'recognition' process (ie, the process by which an employer formally recognises a trade union as representing a defined group of workers) has been simplified, significantly lowering the barriers to recognition.  

October 2026 

Trade unions (continued) 

From 30 October 2026, further reforms will be introduced, including: 

• Employers must provide workers with a written statement informing them of their right to join a trade union. This will apply regardless of whether the employer recognises a union. 

• Employers must allow trade unions to access the workplace. 

Harassment 

Since October 2024, employers have been under a proactive duty to take 'reasonable' steps to prevent the sexual harassment of their employees.  

From 30 October 2026, the duty to prevent sexual harassment will be strengthened to require employers to take 'all reasonable' steps. Regulations are expected to specify the steps employers should follow in order to comply with this duty.   

Employment tribunals 

Currently, most employment tribunal claims must be filed within three months of the incident giving rise to the claim. 

From 1 October 2026, the ERA extends the time limit to six months. 

2027 

Unfair dismissal 

Currently, employees can’t bring an ordinary unfair dismissal claim until they’ve been employed for two years. Compensation is also capped at 52 weeks' gross pay or £118,223, whichever is lower.  

From 1 January 2027, the qualifying period for ordinary unfair dismissal claims will be reduced to six months. The compensation cap will also be removed. 

Bereavement leave 

The ERA introduces a new day one right to unpaid bereavement leave for employees in certain circumstances, effective April 2027. 

Non-disclosure agreements (NDAs) 

The ERA will introduce a ban on NDAs and confidentiality clauses between employers and employees that attempt to prevent workers from making disclosures relating to harassment or discrimination. 

How will the ERA impact clients? 

The reforms require employers to take a number of positive steps to ensure compliance, including introducing new documentation (such as the written statement of the right to join a trade union), as well as reviewing and updating existing contracts, policies and procedures. 

As the changes are implemented, employers are likely to have questions regarding their legal obligations. Equally, employees will be keen to explore the practical application of their new rights. For trainees and junior lawyers, this presents an excellent opportunity to develop expertise in a rapidly evolving area of law that’ll remain at the forefront of employment practice for years to come.  

Alex Peltiez is a solicitor in the employment team of Michelmores LLP.