Government issues further changes to the implementation of key changes under the Employment Rights Act 2025
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Updated Implementation Timeline
The Government has published an updated timeline for implementing key changes under the Employment Rights Act 2025, which replaces the original July 2025 implementation roadmap.
Key changes include:
- The provisions relating to fire and rehire (previously expected to come into force in October 2026) have been pushed back to 2027.
- Electronic and workplace balloting for trade unions will come in ‘no earlier than August 2026’, suggesting these changes will come in earlier than the original October 2026 implementation date.
- The changes to the employment tribunal time limit, so that is the extension from the current time limit to pursue a claim from 3 to 6 months, will come in ‘no earlier than October 2026’. This suggests there may be scope for the original implementation date of October 2026 to slip back.
- The compensatory award cap for an unfair dismissal claim will be removed from 1st January 2027, furthermore the government says it will not be consulting with unions or employers before removing the cap which is not in line with the indication it gave to the House of Lords to secure the Bill’s passage in December.
- The Fair Work Agency now has a precise establishment date of 7 April 2026.
This change is in addition to the reduction of the qualifying service for unfair dismissal to 6 months which also comes into force from 1st January 2027, it has also been confirmed those employees who already have six months’ service or more as of 1st January 2027 will have protection. Other employees will gain this protection once they reach six months’ service
New Consultations Issued
The Government has also launched consultations on Trade Union Rights and Fire and Rehire.
Trade Union Rights
This consultation covers two distinct areas of trade union rights:
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- Seeking views on a revised code of practice covering trade union recognition and derecognition processes; and
- Consulting on proposed legislation to prevent unfair practices in electronic ballot
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This is a welcomed launch, especially as many of the Employment Rights Act 2025 changes to trade union recognition and derecognition processes are due to come into force from 6th April 2026, and the Code of Practice will need to be updated to reflect these changes.
The second part of the consultation, seeks views on government proposals to legislate to prevent interference in electronic recognition and derecognition ballots.
The consultation closes on 1st April 2026.
Fire and Rehire
The Government has launched a first consultation on its proposals in relation to fire and rehire.
Under the Employment Rights Act 2025 changes to the fire and rehire regime will make it automatically unfair where an employee is dismissed or replaced in order to make changes to core terms in their employment contract (protected as ‘restricted variations’). The consultation focuses on which expenses, benefits, and shift changes should be covered by these protections.
The consultation closes on 1st April 2026.
Updated Timetable for implementation of Changes
In light of the recent changes, below is the latest timetable for changes being introduced in 2026, and into 2027.
These timings will be kept under review as the Government carry out further consultations and develop the details of the policies.
Measures that took effect at Royal Assent, December 2025
- the repeal of the Strikes(Minimum Service Levels) Act 2023
Measures that will take effect on 18 February 2026
- the repeal of the great majority of the Trade Union Act 2016, there by simplifying requirements on trade unions, including in relation to industrial action and political funds
- removing the 10-year ballot requirement for trade union political funds
- simplifying industrial action notices and industrial action ballot notices
- protections against dismissalfor taking industrial action
- employees that are newly eligible for ‘Day 1’ Paternity Leave and Unpaid Parental Leave can give notice
Measures that will take effect on 6 April 2026
- collective redundancy protective award – doubling the maximum period of the protective award
- ‘Day 1’ Paternity Leave and Unpaid Parental Leave
- whistleblowing – strengthening protections for workers who ‘blow the whistle’ on sexual harassment
- Bereaved Partners’ Paternity Leave – (non-MWP measure) will enable bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life
- Statutory Sick Pay (SSP) –removing the Lower Earnings Limit (LEL) and waiting period
- action plans on gender equality and supporting employees through the menopause (voluntary)
- menopause guidance
- simplifying trade union recognition process
Measures that will take effect on 7 April 2026
- the establishment of the Fair Work Agency
Measures that will take effect no earlier than August 2026
- electronic and work place balloting for Statutory Trade Union Ballots
Measures that will take effect in October 2026
- bringing forward regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body in England
- procurement – two-tier code
- tightening tipping law
- the duty to inform workers of their right to join a trade union
- strengthening trade unions’right of access
- requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees
- introducing an obligation on employers not to permit the harassment of their employees by third parties
- introducing a power to enable regulations to specify steps that are to be regarded as ‘reasonable’, to determine whether an employer has taken all reasonable steps to prevent sexual harassment
- unfair practices in the trade union recognition process
- new rights and protections for trade union representatives
- extending protections against detriments for taking industrial action
Measures that will take effect no earlier than October 2026
- employment tribunal time limits
Measures that will take effect in December 2026
- commencement of the Mandatory Seafarers’ Charter
Measures that will take effect in January 2027
- reduction of unfair dismissal qualifying period to 6 months, for dismissals from 1 January2027, and uncapping compensatory awards
- fire and rehire protections
Measures that will take effect in 2027
- action plans on gender equality and supporting employees through the menopause (mandatory)
- enhanced dismissal protections for pregnant women and new mothers
- specifying steps that are to be regarded as ‘reasonable’, to determine whether an employer has taken all reasonable steps to prevent sexual harassment
- extending blacklisting protections
- industrial relations framework
- regulation of umbrella companies
- collective redundancy –collective consultation threshold
- flexible working
- bereavement leave including pregnancy loss
- ending the exploitative use of zero-hours contracts
- electronic and work place balloting for recognition and derecognition ballot
