And like any good drama it will come in instalments.
Read on for the lowdown on what to expect, when to expect it, and why it matters…
Whilst some provisions repealing minimum service-level strike rules took effect immediately on royal assent, further reforms affecting trade unions and industrial action will follow from around 18 February 2026.
Employees will gain protection from automatic unfair dismissal for taking part in lawful industrial action, with no minimum service requirement. This brings protection for industrial action into line with other automatic unfair dismissal rights.
At the same time, trade union procedures will be simplified. Notice periods for industrial action will be reduced to 10 days, ballot requirements will move to a simple majority, ballot mandates will last 12 months, and there will no longer be a requirement to appoint a picket supervisor.
Impact for employers - industrial action will be easier to organise, and the risks associated with dismissals or disciplinary action during strikes will increase. Employers will need to tread carefully when responding to strike activity.
April 2026 marks one of the most significant phases of implementation.
Impact for employers - employers will face increased costs and wider SSP liability. Absence policies, payroll systems and monitoring arrangements should be reviewed. Unfortunately, smaller businesses may feel the impact most sharply, as there is currently no general SSP reimbursement scheme.
Paternity leave will be capable of being taken after shared parental leave, offering families greater flexibility in how leave is used.
The maximum protective award for failures to comply with collective redundancy consultation obligations will double (from 90 to 180 days’ gross pay).
Sexual harassment will become a ‘qualifying disclosure’ for whistleblowing purposes, giving those who raise concerns additional protection.
A new Fair Work Agency will be established, bringing together enforcement powers in areas such as minimum wage, holiday pay and SSP. Trade union recognition procedures will also be streamlined, and electronic balloting will be permitted.
Impact for employers - policies, record-keeping and payroll systems may need updating, and employers should expect more active enforcement, particularly around pay-related rights.
A further set of high-impact changes will take effect in October 2026.
Dismissing employees and re-engaging them on worse terms will become automatically unfair in most cases. This significantly narrows the circumstances in which employers can rely on the so-called ‘fire and rehire’ strategy to change contractual terms.
The time limit for bringing Employment Tribunal claims will be extended from three to six months for all claims, increasing the window for litigation.
Employers will be placed under a positive duty to take all reasonable steps to prevent harassment, including harassment by third parties such as customers or clients.
Impact for employers - this is a significant extension and is likely to have a huge impact on sectors such as hospitality, retail - indeed, any roles in which employees interact with third parties and/or the general public.
Employers will be required to consult workers on tipping policies and review them every three years. New obligations will also apply to inform workers of their right to join a trade union and to provide enhanced access and facilities for union representatives.
A new two-tier code will be introduced to prevent inferior terms for outsourced public sector workers and a new Adult Social Care Negotiating Body will be established.
In a remarkable plot-twist late last year the government pivoted from its ‘day one’ right manifesto pledge. Instead, come 1 January 2027, we’ll get the following:
The qualifying period for ordinary unfair dismissal claims will reduce from two years to six months.
It will apply retrospectively, meaning that employees who start employment:
Impact for employers - this dramatically expands access to unfair dismissal protection. Probationary periods, early performance management and decision-making will need to be robust and timely.
The current cap on compensatory awards for unfair dismissal - which is presently the lower of either one year’s salary or £118,223.00 - will be removed, allowing Tribunals to award compensation based on actual loss, without a statutory limit.
Impact for employers - this materially increases potential exposure, particularly for senior or high-earning employees.
Additional protections will apply to dismissals connected to pregnancy and family leave, including maternity, adoption, shared parental and neonatal care leave.
Whether or not the Employment Rights Act 2025 quite lives up to its billing as ‘the biggest upgrade to rights at work for a generation’, there can be no doubt it packs a punch.
Increased ‘day-one’ entitlements, wider access to SSP, strengthened trade union powers, tighter restrictions on dismissals, extended tribunal time limits, the extension of unfair dismissal rights, and removal of the compensation cap.
Yep, the curtain is up and there is no shortage of plot lines.
At the risk of stating the obvious, employers that take a proactive approach now – reviewing policies, contracts and management practices – will be far better placed to manage risk and avoid disruption as these changes take effect.
