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Employment Rights Act

The Employment Rights Act introduces major reforms to UK employment law, with changes being implemented in stages from December 2025 through to 2027.

Employment Rights Act

'197' guidance listed

What happens if an employee refuses to accept a proposed change to their contract?

Under the Act's new restrictions on fire and rehire, it will usually be automatically unfair to dismiss an employee for refusing to accept certain changes to key contractual terms, such as pay, pensions, working hours, shift patterns or leave entitlements.

What changes are being made to redundancy consultation requirements?

The Act increases the consequences for employers that fail to comply with collective redundancy consultation and provides for a future organisation-wide consultation trigger.

What consultation requirements will apply before employers can change terms and conditions?

The Act does not remove the need for employers to consult and seek agreement before making significant changes to employees' terms and conditions.

What new restrictions will there be on ‘fire and rehire’ practices?

Under the new rules, it will usually be automatically unfair to dismiss an employee because they refuse to accept certain changes to key contractual terms, including changes relating to pay, pensions, working hours, shift patterns and time off.

What kinds of contract changes count as a ‘restricted variation’?

Under the Act, a restricted variation is a change to certain key contractual terms that are considered particularly important to workers’ terms and conditions.

Do employers have to consult with workers if there is no recognised union?

Yes. Employers cannot avoid their consultation obligations simply because there is no recognised trade union.

Do the consultation rules apply if fewer than 20 redundancies are proposed?

The legal duty to undertake collective consultation has traditionally applied where an employer proposes to make 20 or more redundancies within a 90-day period. Where fewer than 20 redundancies are proposed, the statutory collective consultation requirements will not normally apply.

How will the new rules interact with company sick pay schemes?

The changes to Statutory Sick Pay (SSP) set a new statutory minimum standard, but they do not prevent employers from providing more generous sick pay arrangements.

Will sick pay be available from the first day of sickness?

Yes. One of the key reforms to Statutory Sick Pay (SSP) is the removal of the current three-day waiting period. Under the new arrangements, eligible workers will be entitled to SSP from the first day of sickness absence.

Will the penalties for failing to consult properly increase?

Yes. The Act increases the penalties that can be imposed on employers who fail to comply with their collective consultation obligations during redundancy exercises.

What are Equality Action Plans and which employers will have to produce them?

The Act introduces Equality Action Plans as a new way for larger employers to demonstrate how they will improve workplace gender equality. Since April 2026, employers with 250 or more employees have been able to publish a voluntary action plan alongside their annual gender pay gap report. Subject to secondary legislation, action plans are expected to become mandatory from spring 2027.

Will the new sick pay rules apply to part-time, agency, or migrant workers?

Yes. The reforms to Statutory Sick Pay (SSP) are intended to extend access to sick pay for many workers who were previously excluded, including some part-time, agency and migrant workers.

What changes are being made to Statutory Sick Pay?

The Act introduces significant reforms to Statutory Sick Pay (SSP), with the aim of extending access to sick pay and improving support for workers who are unable to work because of illness.

What new protections will there be against harassment at work?

Employers will be required to take all reasonable steps to prevent sexual harassment of their workers in the course of employment. This raises the standard from the previous duty to take reasonable steps and places greater emphasis on preventing harassment before it occurs.

Will the Act address gender, ethnicity, or disability pay gaps?

Yes. The Act strengthens measures to improve pay transparency and help employers take action to reduce workplace inequalities.

Are there changes to the use of non-disclosure agreements in harassment cases?

Yes. The Act provides that certain contractual terms seeking to prevent workers from alleging or disclosing work-related harassment or discrimination will be void. This change is due to come into force during 2027, with exceptions and detailed rules to be set out in regulations.

What changes will the Act make to zero-hours contracts and casual work?

The Act creates new protections to provide greater security and predictability at work, such as guaranteed-hours, reasonable notice of shift changes and a new framework for agency agreements. These rights are due to come into force during 2027, with important details to be set out in regulations.

What safeguards are there to stop employers avoiding the new rules by reclassifying workers as self-employed?

A worker's legal status is determined by the reality of the working relationship, not simply by the label used in a contract. An employer cannot avoid employment rights simply by describing someone as self-employed if, in practice, they meet the legal definition of a worker or employee.

What changes are being made to the qualifying period for unfair dismissal

The Act reduces the qualifying period for ordinary unfair dismissal protection from two years' continuous service to six months.

How will the new unfair dismissal rules interact with probation periods?

The Act reduces the qualifying period for ordinary unfair dismissal from two years to six months. It does not abolish probation periods, and employers will continue to be able to use them to assess whether a new employee is suitable for the role.

How will unfair dismissal rights apply to workers on fixed-term contracts, agency contracts, or temporary work?

The new six-month qualifying period for ordinary unfair dismissal will apply to employees, including those working on fixed-term contracts. Agency workers and other temporary workers are in a more complex position because unfair dismissal rights depend on employment status.

Are there transitional arrangements for workers who were employed before the new rules take effect?

Yes. The new unfair dismissal rules will apply not only to new employees but also to many people who are already in employment when the changes come into force.

What changes does the Act make to trade union recognition rules?

The Act simplifies the statutory recognition process, making it easier for unions to gain recognition through the Central Arbitration Committee (CAC).

What changes are being made to unions’ rights to access workplaces and communicate with workers, including digitally?

The Act creates new physical and digital access rights for trade unions to recruit, organise, support and represent workers, including in non-union workplaces, with a new CAC process where access cannot be agreed with employers.

Are there changes to the process for employers to derecognise a union?

The Act strengthens protections against unfair practices during recognition and derecognition campaigns, with greater CAC oversight of employer conduct, while reps should monitor and document unfair behaviour and can seek support from the CAC where concerns arise.

Will the new rules make it easier for unions to organise workers and win recognition?

The reforms are designed to make organising and recognition easier for unions through simpler recognition procedures, new workplace and digital access rights, and a requirement for employers to inform workers of their right to join a union, creating more opportunities for reps to recruit, organise and build workplace relationships.

Are there plans to introduce or expand sectoral collective bargaining?

The Act enables sector-level negotiating bodies, starting with adult social care in England, bringing together employers, unions and government to negotiate minimum pay and terms, with potential for the model to expand to other sectors.

Does the Act change the laws governing the right to strike?

The Act simplifies the process for organising industrial action, extends strike mandates, strengthens protections for workers, and makes it harder for employers to challenge lawful action on technical grounds.

Will the 50% turnout threshold for industrial action ballots be removed?

The Act provides for the 50% turnout threshold for industrial action ballots to be removed, but this change is not yet in force and no commencement date has been confirmed.

Will strike ballots still have to be conducted by post?

From August 2026, unions will be able to use electronic and workplace balloting alongside postal voting, making it easier for members to participate in statutory ballots.

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