On February 4, the government unveiled initial measures regarding the Employment Rights Act 2025, which received Royal Assent shortly before Christmas. The upcoming changes will roll out over the next few years, with many still open for consultation to allow public input on the implementation process.
Key changes include the repeal of the Strikes (Minimum Service Levels) Act 2023 and significant adjustments to the Trade Union Act 2016, such as simplifying requirements for trade unions and revising mandates regarding strike ballots. Notably, the notice period for industrial action will shorten from 14 days to 10, and employees dismissed for participating in industrial action will have an immediate claim for unfair dismissal.
Additional rights introduced include ‘Day 1’ entitlements for paternity leave, the abolition of waiting periods for Statutory Sick Pay (SSP), and enhanced protections for sexual harassment whistleblowers. Employers will also start requiring action plans for gender equality and employee support during menopause, although these will initially be voluntary.
As these changes are phased in from 2026 to 2027, the government aims to bolster workplace protections and streamline union processes. However, some industry experts caution that many organizations, particularly small and medium-sized enterprises (SMEs), may struggle to adapt to these new regulations. Compliance challenges could lead to setbacks in public sector contracts, emphasizing the need for proactive adjustments and strategic planning.
Experts stress that addressing these changes early could offer SMEs a competitive edge and help position them as equitable employers.
Why this story matters: The new Employment Rights Act 2025 introduces extensive reforms aimed at employee protections and union operations, impacting numerous employers and sectors.
Key takeaway: Employers must prepare for significant regulatory changes, including new rights for employees and modifications to union activities, to ensure compliance and maintain competitive standing.
Opposing viewpoint: Some experts warn of potential challenges for SMEs in adapting to these regulations, which may result in compliance failures and complications in public sector contracts.
