The Employment Rights Act 2025: Update for Employees

Employee RightsBy Monaco Solicitors / May 08, 2026

You’ve no doubt seen the headlines about the Employment Rights Act 2025. It’s one of the biggest changes to UK employment law in years.

Most explanations focus on what employers need to do – not what it means for you – but this blog cuts through that.

We explain the key changes in plain English, when they take effect, and most importantly, how they could affect your rights at work, especially if you’re being treated unfairly.

Why the Employment Rights Act 2025 matters to you

The Employment Rights Act 2025 introduces a wide range of reforms designed to improve employees’ job security, working conditions and fairness at work.

But here’s the key point: New rights only help you if you know when they apply and how to use them.

Many employees miss out simply because:

They don’t realise a rule has changed.
They assume they have fewer rights than they actually do.
They wait too long before taking advice.

Key changes and when they take effect

The reforms are being introduced in stages, so timing matters. Below are some of the most important changes from an employee’s perspective:

Changes to sick pay rights (Effective April 2026)

The Act includes reforms to Statutory Sick Pay (SSP) and came into force on 6th April 2026. (See our separate page on Sick Pay: A guide for employees for more.)

The key changes are:

Removal of the lower earnings limit (so more workers qualify).
SSP is payable from day one of sickness (instead of day four).

This means you get greater financial protection if you fall ill, and you’re in a stronger position if your employer puts pressure on you to work while ill.

So, if your employer refuses sick pay, you may be able to bring a wages claim or unlawful deduction of wages claim.

Longer time limits for tribunal claims (Effective 1st October 2026)

From 1st October 2026, the time limit for bringing most employment tribunal claims doubles from three months (less one day) to six months (less one day). This covers unfair dismissal, discrimination and harassment, unlawful deductions from wages and whistleblowing claims.

But the new limit isn’t backdated. It only applies if the act you’re complaining about happened on or after 1st October 2026. If it happened earlier, you still only have three months (less one day), even if you don’t take advice until after 1st October.

You must still also contact Acas for early conciliation within the time limit. If you’re not sure which limit applies to you, assume it’s three months and take advice straight away.

See our post ‘Employment Tribunal Claims Time Limits 1st October 2026‘.

Stronger protection against sexual harassment (Effective 30th October 2026)

From 30th October 2026 your employer must take all reasonable steps to prevent sexual harassment, not just reasonable steps. It is also liable if customers, clients or other third parties harass you at work and it failed to take all reasonable steps to prevent it.

See our post ‘Sexual harassment at work: new protections from 30th October 2026‘.

Stronger protection against unfair dismissal (Effective 1st January 2027)

One of the most significant changes is the move towards greater protection from unfair dismissal, which takes effect on 1st January 2027. This means:

Until then, most employees need two years’ service before they can claim unfair dismissal.
If your employment ends on or after 1st January 2027, you only need six months.
The cap on unfair dismissal compensation (now one year’s gross pay or £123,543, whichever is lower) is abolished from the same date.

See our post ‘New Unfair Dismissal Rights from January 2027‘.

But there is a catch: To overcome the full impact of this change, employers are likely to rely more heavily on probation periods and performance management processes in order to dismiss you.

So, if you are dismissed early in your employment, you may have stronger grounds to challenge it, but you will still need strong evidence (e.g. emails, meeting notes, inconsistencies)

See our separate post on New unfair dismissal rights from January 2027 for further details

Greater protection for workers on insecure contracts (Expected 2027)

The Act also targets zero-hours and insecure work arrangements, with reforms expected to take effect in 2027. It will include:

The right to request a more predictable working pattern.
Compensation if shifts are cancelled at short notice.

This means you’ll have greater stability in hours and income as well as stronger grounds to challenge unfair scheduling practices.

What you should be doing now

Even though some of the changes haven’t taken effect yet, there are practical steps you can take now to protect yourself from the issues covered by the Act. For example:.

1. Keep relevant records

Save emails, messages and meeting notes
Keep a timeline of key events

2. Don’t assume you have no rights

The law is changing quickly
What wasn’t possible last year may be possible now

3. Take legal advice early

Early legal advice can help you avoid mistakes
It can also strengthen your position if things escalate

Frequently Asked Questions about the Employment Rights Act 2025

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 is a major reform of UK employment law introducing new protections for workers, including changes to sick pay and dismissal rights. It is being implemented in stages up to 2027.

When will greater unfair dismissal rights start?

On 1st January 2027. If your employment ends on or after that date, you only need six months’ service instead of two years, and there’s no cap on the compensatory award.

Will sick pay increase under the new law?

The reforms make Statutory Sick Pay available from day one of absence and to more workers. These changes took effect from April 2026.

Do I now have six months to bring a tribunal claim?

For most claims, yes, but only where the act you’re complaining about happened on or after 1st October 2026. For anything earlier, the deadline is still three months less one day.

Need legal help?

If you think your employer may be breaching your rights under the Employment Rights Act 2025 – or in any other way – Monaco Solicitors may be able to help you.
We are specialist employment lawyers whose expert lawyers represent employees only. Get in touch:

Contact us online
Phone 020 7717 5259
Email [email protected]