Employment Rights Act 2025: updated timeline

Although some changes have already taken effect, several significant reforms will be introduced over the next few months. The government has recently updated its implementation roadmap, making this a good opportunity to review the key dates, understand what is changing and make sure you are prepared for the next phase of reform.  

Tribunal time limits 

From 1 October 2026, employees will have six months, rather than three, to bring most employment tribunal claims. The new time limit will apply where the relevant date, such as the effective date of dismissal or the act of discrimination complained of, falls on or after 1 October 2026.

The longer time limit may give you more time to resolve disputes before legal proceedings begin. However, it is also likely to increase uncertainty, lead to more tribunal claims and result in hearings taking place much further from the events in question. 

As a result, you will need to address workplace issues promptly before they escalate. Early intervention, consistent processes and effective manager training will become even more important. 

Sexual harassment

The ERA 2025 strengthens employers' existing duty to prevent sexual harassment. 

Since October 2024, employers have had to take reasonable steps to prevent sexual harassment. From 30 October 2026, employers must take all reasonable steps, which sets a significantly higher standard. 

Third-party harassment

From 30 October 2026, employers will also become liable for all types of harassment of workers by third parties, such as customers, clients or service users. 

To prepare for these changes, you should identify where staff interact with third parties, assess the risk of harassment in those settings, update risk assessments, policies and reporting procedures, and train managers to recognise, investigate and respond to complaints effectively. 

Trade union reforms

Several trade union reforms will take effect on 30 October 2026, including:

• a new right for trade unions to request physical and/or digital workplace access
• enhanced rights for trade union representatives, union learning representatives and equality representatives; and
• protection from detriment where the sole or main purpose is to penalise, prevent or deter participation in industrial action

You can find out more about these changes here and here. 

The government had been expected to also introduce the new duty to inform workers of their right to join a trade union in October 2026. However, it has now confirmed that the duty is expected to come into effect in January 2027. From that date, you will need to provide the statement to all new workers. You will then have to provide it to existing workers by 5 April 2027. 

Find out more here. 

Procurement

The government previously stated that it intended to reinstate the two-tier code in October 2026. The aim is to ensure that where public services are outsourced, the contractors' direct hires and transferred public sector employees are treated fairly. However, this proposal no longer appears in the implementation timeline. It is not yet clear whether this reflects a change in policy or an omission from the updated roadmap. 

Tipping policies

Since October 2024, employers have been required to pass all qualifying tips, gratuities and service charges to workers and distribute them fairly and transparently. 

The ERA 2025 introduces additional consultation requirements. Before issuing a written tips policy, you will need to consult recognised trade unions or worker representatives. You must also review the policy at least every three years and repeat the consultation process as part of each review. 

These changes are expected to take effect before the end of 2026.

Unfair dismissal

From 1 January 2027, the qualifying period for ordinary unfair dismissal claims will reduce from two years to six months. The cap on the compensatory award will also be removed. 

These changes will significantly increase the number of employees with unfair dismissal protection. You should review your employment contracts and probationary arrangements now. Many employers currently use six-month probation periods, but you will need to shorten these so that managers can assess a new starter's suitability before ordinary unfair dismissal rights arise. 

Fire and rehire

New restrictions on dismissal and re-engagement, often known as ‘fire and rehire’, will also take effect in January 2027. 

Under the new legislation, dismissing an employee for refusing a restricted variation to their contract will be automatically unfair unless the employer faces severe financial difficulties and has no reasonable alternative. 

Restricted variations include changes to key contractual terms such as pay, hours, and the insertion of a term enabling the employer to make any variation with regard to any of the other restricted variation clauses, without the employee's agreement. 

Other changes expected during 2027

Further reforms expected in 2027 include: 

• gender equality and menopause action plans (for large employers) 
• enhanced dismissal protection for pregnant women and new mothers
• changes to collective redundancy consultation threshold
• reforms to flexible working (expected in Autumn 2027)
• a new right to bereavement leave (April 2027)
• the introduction of the right to guaranteed hours, reasonable notice requirements and short-notice payments for zero hours, low hours and agency workers
• more trade union reform 
• restrictions on the use of non-disclosure agreements (NDAs)

What should employers do now?

With major changes still to take effect, you should start preparing now. 

Reviewing policies, contracts, manager training and workplace procedures ahead of implementation dates will help you reduce legal risk, manage employee relations effectively and avoid a last-minute compliance exercise. 

How can we support you?

We can support you at every stage, from resolving workplace issues and managing grievances, disciplinary and performance concerns, through to defending employment tribunal claims from Acas Early Conciliation to the final hearing. You can find out more here.  

Our Back to Basics training includes dedicated modules on harassment for both employees and line managers, as well as practical guidance to help managers handle day-to-day people issues fairly, consistently and confidently. 

We can also help when you are reviewing and updating your harassment risk assessments given the new requirements.  

In addition, we can review your contracts of employment, identify any areas of risk and help you implement the changes needed to comply.

Please speak to Jenny Arrowsmith or Gordon Rodham for more information.

You can find out more about the ERA 2025 changes and how we can help you prepare here. 

Our newsletters

We publish monthly employment and education newsletters. If you'd like to be added to the mailing list, please let me know.