Employment Rights Act 2025 receives Royal Assent

Employment Rights Act 2025 receives Royal Assent

The Employment Rights Act 2025 finally received Royal Assent on 18^th December 2025, and has now become law. The Employment Rights Act 2025 represents the most significant reform of UK employment law in a generation. Its purpose is to strengthen individual employment rights, rebalance the employer–employee relationship and modernise workplace protections, particularly for insecure workers. The Act delivers a broad package of reforms which will be phased in over time through secondary legislation and consultation.

As we move into 2026 lets refresh ourselves of the key themes of the Act:

Key Themes of the Act

1. Stronger Day-One Employment Rights

The Act significantly expands rights available from the first day of employment, reducing reliance on qualifying periods. This includes:

• Enhanced protection from unfair dismissal (subject to limited exceptions)
• Greater access to statutory family-related and flexible working rights
• Increased transparency over contractual terms and working arrangements

2. Reform of Dismissal and Redundancy Law

The Act tightens procedural expectations on employers by:

• Strengthening unfair dismissal protections
• Increasing scrutiny of redundancy processes
• Enhancing consultation requirements and remedies where processes are deficient

These changes increase the importance of early planning, meaningful consultation and robust documentation.

3. Changes to Zero-Hours and Insecure Work

The Act introduces measures to:

• Limit exploitative zero-hours practices
• Improve predictability of working hours
• Strengthen worker protections around cancellation of shifts and variable hours

This is aimed at improving job security while retaining labour market flexibility.

4. Trade Union and Collective Rights

Trade union law is significantly reformed, including:

• Easier access to statutory recognition
• Enhanced rights of access to workplaces
• Strengthened protections for union members and representatives

Employers should expect greater union engagement and increased compliance obligations.

5. Equality, Fair Pay and Workplace Protections

The Act aligns closely with wider equality reforms, supporting:

• Fair pay principles
• Greater transparency
• Stronger enforcement of workplace rights

This sits alongside anticipated reforms under separate equality legislation.

The Employment Rights Act 2025 marks a decisive shift towards stronger worker protections and higher employer accountability. While implementation will be gradual, employers that begin preparation early will be best placed to manage risk, maintain workforce confidence and remain compliant.

Please do consult our previous articles on the timeline of changes being implemented under the Employment Rights Act, and do look out for our HR and Legal Masterclass Series and Employment Rights Act Training and Implementation Service, which will be going live towards the end of January and which will provide practical training on all changes being introduced under the Act.