Employment Rights Act 2025: An overview

07.01.2026

Employment Rights Act 2025: An overview

The Employment Rights Act had a long and complicated Parliamentary journey which it finally completed on 16 December 2025. It received Royal Assent two days later.

What legislation is being amended?

In many cases the Act proceeds by amending existing employment legislation rather than creating free‑standing rights. The key employment legislation for these purposes is the Trade Union and Labour Relations (Consolidation) Act 1992, the Employment Rights Act 1996, and the Equality Act 2010.

In due course the Government will make the amended versions publicly available, but in the meantime we'll need to read this new legislation alongside the legislation it's amending.

What are the key provisions?

The Act implements the Government’s Plan to Make Work Pay across six parts:

  • Part 1: employment rights – zero/low‑hours protections; extensions to SSP; family rights; workplace harassment duties; fire & re‑hire restrictions; and enhancements to unfair dismissal.
  • Part 2: other employment‑related rights – collective redundancy consultation reforms; public sector outsourcing rules.
  • Part 3: sector‑based pay and conditions – School Support Staff Negotiating Body (England) and Adult Social Care Negotiating Bodies (UK).
  • Part 4: trade unions and industrial action – new statement of trade union rights; union access agreements; reforms to recognition; repeal/simplification of previous industrial action rules.
  • Part 5: labour market enforcement – establishes the Fair Work Agency to enforce core employment rights including holiday pay, SSP and national minimum wage.
  • Part 6: miscellaneous – doubles the time limit for commencing most employment tribunal claims from three to six months.

Note: the increase to six months applies to most employment tribunal jurisdictions; discrimination claims remain subject to a three‑month limit unless extended by tribunal discretion.

What secondary legislation will be required?

Most employment‑related measures require secondary legislation before implementation (Government indicates around 80 statutory instruments). Consultation is underway across 2026.

When will measures be brought into effect?

Government’s implementation timetable (published 1 July 2025) envisages four phases, starting two months after Royal Assent (17 February 2026) with industrial action reforms. The new zero‑hours regime is signposted for 2027.

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