This marks one of the most significant updates to UK employment law in a generation. While much of the detail will be introduced gradually over the next two years, the direction of travel is now clear: stronger protections for workers, greater clarity around employer responsibilities, and a framework designed to support fair, productive and sustainable workplaces.
For small and medium-sized businesses, the key challenge is not just understanding what is changing, but when – and how to prepare without disruption.
According to the government, over 15 million workers across the UK are expected to benefit from the new legislation, including those on lower pay and in more insecure roles. Measures such as day-one family rights, improved statutory sick pay, clearer dismissal protections and changes to zero-hours contracts aim to create greater security at work, while giving businesses clearer, more consistent rules to operate within.
Importantly, the reforms are being introduced in phases between 2026 and 2027, with further guidance and consultation expected along the way. This phased approach is intended to give employers time to plan, adapt policies, and train managers before changes take effect.
As Chris O’Shea, Chief Executive of Centrica, put it:
“We’ve seen first-hand that a business thrives when its people thrive, and so a stable, fair framework for work helps businesses plan, invest and grow with confidence. In the long run, what is good for workers is also good for business, and that is ultimately good for the economy as a whole. We are delighted to see Royal Assent to the Employment Rights Act, which provides greater clarity and certainty for employers and employees alike.”
This balance between fairness and certainty is a recurring theme throughout the Act.
While limited in scope, this change sets the tone for a broader reshaping of industrial relations in the years ahead.
Industrial action protections:
Trade union reforms:
April 2026 is when we will begin to see some of the ‘hot topic’ changes come into force.
Family-friendly rights:
Statutory Sick Pay (SSP):
Collective redundancy:
Harassment and whistleblowing:
Equality action plans (voluntary):
Fair Work Agency:
A further wave of changes is expected in October 2026 – importantly, how the changes will be brought in is subject to government consultations.
Ending ‘fire and rehire’:
Harassment protections expanded:
Employment tribunal claims:
Trade union rights:
Further significant reforms are expected in 2027, including:
While many of the changes are still some way off, early preparation will make compliance smoother and reduce risk. Employers should consider:
This is also an excellent opportunity to strengthen onboarding, probation processes, performance management and record-keeping – all of which will become increasingly important under the new framework.
Metro HR works with small and medium-sized businesses to interpret legislative change, update policies, train managers and build practical, compliant people processes that work in the real world.
With the upcoming changes, there is a lot on the table for businesses to consider – but you don’t need to go it alone. We can assist with risk assessments, reviewing and updating of policies, staff training and development and developing your overall HR strategy.
If you’d like help understanding how the new Act will affect your business, or need support in preparing for what’s ahead, get in touch with Metro HR to discuss your next steps with confidence.
Sources and Further Information:
ACAS Update: https://www.acas.org.uk/employment-rights-bill
Government Press Release: https://www.gov.uk/government/news/new-lawsbringthe-world-of-work-into-the-21stcentury
Full Employment Rights Act 2025: https://www.legislation.gov.uk/ukpga/2025/36/enacted
Article from Farrer UK: https://www.farrer.co.uk/news-and-insights/the-employment-rights-act-2025-preparing-for-change-with-seven-practical-steps/
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