The Employment Rights Act 2025 is introducing a range of significant reforms to UK employment law, with the key changes being phased in over 2026 and 2027. The much-publicised reduction of the service requirement for unfair dismissal claims and the removal of the compensation cap will take effect in January 2027. Our table below summarises the key changes, the timing of implementation and key action points for employers.
Employment Rights Act
What does it mean for employers?
Overview
The Government has also pledged to introduce other employment law reforms separately, including:
- Ethnicity and disability pay gap reporting requirements for employers with at least 250 employees (the Government ran a consultation on the proposed detail of the reporting requirements in 2025 and published its response to the consultation in March 2026).
- Introducing a "single worker status" under which all workers would have full employment rights.
- Reviewing the current parental leave system (commenced July 2025 and expected to continue until early 2027).
- Examining carers' leave and considering whether it should be paid.
Action Plan
Our action plan sets out the key steps employers should take, and when.
Bitesize webinar series
Listen to our new bitesize webinar series where we explore upcoming employment reforms under Employment Rights Act.
Our webinars are short (5 -15 mins) so you can watch or listen on your commute or during a coffee break.
