By Kathryn Rodgers, face2faceHR
The Employment Rights Act 2025 has now received Royal Assent, marking one of the most significant updates to UK employment law in a generation.
While many of the changes will be phased in over the next couple of years, the direction of travel is clear: stronger protections for workers and a renewed focus on fairness, security and wellbeing at work.
For small businesses, this represents both an opportunity and a challenge. The reforms aim to modernise employment rights to reflect today’s working world, but they will also require employers to review policies, processes and management capability to stay compliant.
Why this matters now
Although not all elements of the Act will take effect immediately, some key changes are expected to begin from 2026, with others following through 2027 and beyond. This gives employers a valuable window to prepare, rather than react at the last minute.
Crucially, these reforms don’t replace existing rights; they build on them. The Act strengthens employee protections while encouraging better people management practices across organisations of all sizes.
Key changes coming in 2026
One of the most practical changes for employers relates to family-related leave. Paternity leave and unpaid parental leave will become day-one rights, removing the requirement for employees to complete a qualifying period of service. This means more employees will be able to take time away for family responsibilities much earlier in their employment.
Another significant change is the reduction in the qualifying period for unfair dismissal claims. While unfair dismissal will not become a day-one right, employees will be able to bring a claim after six months’ service, rather than the current two years. This will require employers to be confident that probation processes, performance management and dismissal decisions are fair, well-documented and consistently applied.
What’s still to come
Beyond 2026, further reforms are planned that will reshape the employment landscape. These include:
Enhanced protections for pregnant employees and those returning from maternity leave, aimed at reducing discrimination and unfair treatment.
The introduction of a new right to statutory bereavement leave, with further details still to be confirmed.
Changes for workers on zero-hours and lowhours contracts, including the right to request a contract reflecting their regular working pattern.
New rights to reasonable notice of shifts and compensation where shifts are cancelled at short notice.
Requirements for employers to produce gender pay gap action plans and implement menopause policies, reflecting a broader focus on workplace wellbeing and inclusion.
While the detail and timing of some measures are still subject to consultation, the overall message is clear: employment practices must better reflect real working lives.
What this means for small businesses
For small businesses, these changes may feel daunting – particularly where HR support is limited. However, they also present an opportunity to strengthen people management and build more engaged, resilient teams.
To prepare, employers should start by:
Reviewing employment contracts and policies.
Ensuring managers understand the changes and how they affect day-to-day decisions.
Strengthening probation, performance and absence management processes.
Communicating openly with employees about what’s changing and why.
Well-prepared businesses are likely to see benefits beyond compliance, including improved trust, retention and employee engagement.
Final thoughts
The Employment Rights Act 2025 signals a clear shift towards fairer, more secure work. While the full impact will take time to unfold, businesses that prepare early – and invest in confident, capable people management – will be best placed to adapt and thrive.
If you have any questions or need support on Employment Rights Act contact Kathryn Rodgers – 07946 330025