Employment Rights Act 2025: What Employers Need to Know (2026–2027 Changes)

Written By Maze Borrinaga

If you employ people — even a small team — this is something you need on your radar NOW.

The Employment Rights Act 2025 is now being phased in, and there’s still a lot of confusion around what it actually means in practice.

This blog pulls together the key changes coming across 2026 and 2027 — in simple terms, without the jargon — so you can understand what’s changing and what you need to start thinking about now.

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The Big Picture

This isn’t one single change. 

It’s a series of changes being introduced in phases across 2026 and 2027. 

The direction of travel is clear: 

  • Higher expectations on employers 

  • More consistency required 

  • Greater scrutiny around how businesses operate 

This isn’t about panic. 

It’s about being prepared. 

 

National Minimum Wage – April 2026

One of the first areas affected. 

What’s changing:

  • Increased minimum wage rates 

  • Greater enforcement focus 

What to think about:

  • Working time calculations 

  • Deductions 

  • Salary sacrifice arrangements 

  • Overall pay compliance 

This is an area where mistakes are easy to make — and penalties can be significant. 

 

Statutory Sick Pay – 6 April 2026 

What’s changing: 

  • Sick pay becomes payable from day one 

  • More employees will qualify 

What this really means: 
This isn’t just about cost. 

It’s about your absence management process: 

  • How sickness is reported 

  • How it’s recorded 

  • How consistently it’s managed 

This is where most businesses run into issues. 

 

Family Leave Updates – April 2026 

What’s changing: 

  • Updates to paternity leave notice requirements 

  • Updates to unpaid parental leave notice 

What to focus on: 

  • Consistency across managers 

  • Clear processes 

  • Up-to-date policies 

Family leave issues rarely come from the law itself — they come from how it’s applied day-to-day. 

 

Increased Enforcement – Fair Work Agency (April 2026) 

A new enforcement body is being introduced. 

What this means: 

  • More joined-up enforcement of employment rights 

  • Increased visibility on compliance 

Areas impacted: 

  • Pay 

  • Holiday entitlement 

  • Worker treatment 

  • Documentation and processes 

Most businesses aren’t intentionally non-compliant — but gaps often exist. 

This type of change tends to bring them to light. 

 

Tribunal Time Limits – October 2026 

What’s changing: 

  • Time limit for most tribunal claims increases from 3 months to 6 months 

What this means: 

  • Longer exposure to claims 

  • More time for issues to escalate 

Key takeaway: 
Documentation becomes critical. 

  • Clear records 

  • Consistent processes 

  • A clear timeline of decisions 

Not perfection — consistency. 

 

Sexual Harassment Duty – October 2026 

What’s changing: 

  • Duty increases from “reasonable steps” to “all reasonable steps” 

What this means in practice: 

  • Policies alone are not enough 

  • Employers must actively demonstrate prevention 

Focus areas: 

  • Training 

  • Workplace culture 

  • Reporting processes 

  • Evidence of action taken 

This is one of the biggest practical shifts for employers. 

 

Fire & Rehire – October 2026 

What’s changing: 

  • Much stricter limits on using fire and rehire 

What this means: 

  • Contract changes must be handled properly 

  • Process becomes critical 

Key focus: 

  • Genuine consultation 

  • Clear communication 

  • Proper procedure 

Rushing or shortcutting this process will carry more risk. 

 

Unfair Dismissal – January 2027 

What’s changing: 

  • Qualifying period reduces from 2 years to 6 months 

What this means: 

  • Early-stage employment becomes higher risk 

  • Probation periods matter more than ever 

What to get right: 

  • Clear expectations 

  • Regular reviews 

  • Early, honest conversations 

Leaving issues too late becomes much harder to manage. 

 

Looking Ahead – 2027 Changes 

Further changes expected around: 

  • Zero-hours contracts 

  • Flexible working 

Direction of travel: 

  • More predictability for employees 

  • More structure for employers 

These changes aren’t immediate — but they are coming. 

 

Final Thoughts 

These changes aren’t designed to catch good employers out. 

But they will expose gaps: 

  • In processes 

  • In documentation 

  • In how people are managed day-to-day 

The businesses that feel confident over the next couple of years will be the ones who prepare early. 

 

Free HR Consultation & Audit

If you’re unsure how prepared your business is for these changes, it’s worth reviewing things now. 

We’re offering a FREE HR Consultation and FREE HR Audit with our HR Consultancy. 

We’ll: 

  • Review your current setup 

  • Identify any gaps 

  • Give you clear, practical next steps 

Contact me directly at francine.kane@4frontrecruitment.com or connect via LinkedIn and drop me a message.

I’ll arrange for one of our HR Specialists to speak with you at a time that suits you. 

Maze Borrinaga
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