Overview update on ERB 2025
As we know, the employment rights bill has officially become law, receiving Royal Assent on 18th December 2025. Now known as the Employment Rights Act 2025, the new legislation comes after a lengthy parliamentary journey. The employment law changes included in the Act will take place over a period of 2 years. Most changes will happen in 2026 and 2027.
It is important to note that none of the changes are in force yet. Implementation will begin from April 2026. Our overview below highlights the monthly timeline of the changes that are now officially set in stone.
APRIL 2026
- National Minimum Wage increase (4.1%)
- Statutory family related leave pay increase
- Paternity and Parental Leave changes
- Statutory Sick Pay changes
- Collective redundancy protective award changes
- Whistleblowing protections relating to sexual harassment
- Further trade union changes
- Fair work agency established
OCTOBER 2026
- Fire and rehire reforms
- Enhanced harassment laws – sexual harassment and third party harassment
- Enhanced tipping laws
- Increased employment tribunal time limits
- Duty to inform changes
- Further trade union changes
2027
The government has not yet confirmed when most of the proposed changes will take effect during 2027.
Important: In most cases, how these changes will be implemented is subject to government consultations, therefore have the potential to change.
- Unfair dismissal (Part of the Employment Rights Act 2025 – coming into effect January 2027).
- Increased pregnancy and maternity rights
- Bereavement leave
- Zero-hour contracts changes
- Compensation for cancelled shifts
- Flexible working amendments
- Further harassment change
- Collective redundancy changes
- Further trade union changes
What should be your next steps?
As an SME, it’s time to tighten up on your compliance and documentation. This means updating and refreshing your contracts of employment as well as your handbook. Both of these need to be compliant with upcoming legislation changes as well as aligned with one another.
Our advice
Get ahead of the curve and book a review with us. We will:
- Review your existing documentation
- Update your contracts and handbook in line with upcoming legislation
- Ensure you understand your responsibilities as an employer and remain protected
Don’t wait until the changes come into effect – April is too late.
Email lucy@mcillanandassociateshr.com to start the process now.