The most significant reform to UK employment law in a generation. Every change employers need to know — and what to update immediately.
The Employment Rights Act 2025 is the most significant reform to UK employment law in a generation. Its provisions are being implemented in stages between 2025 and 2027. The most impactful changes came into force on 6 April 2026.
Action required: If your employment contracts still reference waiting days for SSP, a two-year qualifying period for unfair dismissal, or pre-2026 NMW rates, they are out of date and should be updated immediately.
From 6 April 2026, Statutory Sick Pay is payable from the first day of absence. The three waiting days that previously applied have been abolished.
| Feature | Before 6 April 2026 | From 6 April 2026 |
|---|---|---|
| Waiting days | 3 days (SSP not paid) | None — SSP from day 1 |
| Lower Earnings Limit | Must earn above LEL | LEL removed — all qualify |
| SSP weekly rate | £118.75/week (2025/26) | £123.25/week, or 80% of average weekly earnings if lower (2026/27) |
Contract update required: Any contract mentioning the three waiting days or Lower Earnings Limit is now inaccurate. Update or remove the reference.
The following are now day-one rights with no qualifying period:
From 1 January 2027, the qualifying period drops from two years to six months. From an employee’s seventh month, you are effectively exposed to unfair dismissal claims.
From 1 October 2026, the time limit for bringing most employment tribunal claims (including unfair dismissal and discrimination) increased from three months to six months. Claims now stay live for longer, so keep dismissal records accordingly.
Also from October 2026: employers must take all reasonable steps to prevent sexual harassment (and can be liable for harassment by third parties such as customers), dismissing staff to force through changes to core terms ("fire and rehire") is restricted, and unions gain new workplace access rights. The duty to tell workers about their right to join a trade union has moved to January 2027 (expected).
Start preparing now: Review probation and performance processes before January 2027. Every dismissal will need to be properly documented from a much earlier stage.
| Category | Rate from April 2026 |
|---|---|
| National Living Wage (21+) | £12.71/hour |
| 18–20 year olds | £10.85/hour |
| 16–17 year olds | £8.00/hour |
| Apprentice rate | £8.00/hour |
The ERA 2025 made significant changes including: abolishing SSP waiting days (SSP now from day one of illness), day-one paternity and parental leave, strengthening flexible working rights (expected 2027), requiring written statements of trade union rights, and reducing the unfair dismissal qualifying period to six months (expected from January 2027).
Different provisions commenced at different dates. SSP from day one and day-one paternity and parental leave are in force from April 2026. The duty to tell workers about their right to join a trade union is expected from January 2027. The six-month qualifying period for unfair dismissal is expected from January 2027. The time limit for bringing most employment tribunal claims increased from three to six months from 1 October 2026.
Yes. Employment contracts must be updated to reflect the new SSP rules and day-one family leave; flexible working changes are expected in 2027, and from January 2027 (expected) workers must be given a written statement of their right to join a trade union.
From January 2027 (expected), the qualifying period for unfair dismissal rights drops from 2 years to 6 months. Employers will need to ensure probationary processes are robust and documented from day one of employment.
Updated for every ERA 2025 change — SSP from day one, day-one family leave, updated NMW rates, and January 2027 changes flagged throughout.
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