The Employment Rights Bill, described as the most significant overhaul of UK employee protections in generations, received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025 (ERA 2025). The legislation introduces modernised workplace rights, including flexible working, secure hours and robust anti-discrimination measures.

Key changes at a glance

The below provides a brief overview of the key changes introduced by the ERA 2025. These will take effect within the next 12-24 months and will be examined in greater detail throughout this article.

• Unfair dismissal: From 1 January 2027, the qualifying period for unfair dismissal drops to six months and the cap on compensation is abolished, allowing unlimited awards.
• Zero hours and shift workers: New rights will guarantee minimum hours, advance notice of shifts, and compensation for short-notice cancellations.
• Fire and rehire: Dismissals for refusing significant contractual changes will be automatically unfair, subject to limited exceptions.
• Statutory sick pay (SSP): Day one entitlement will be introduced, with removal of earnings thresholds and the 3 waiting days. SSP will be payable at 80% of earnings for those earning under the lower earnings threshold, or a flat rate (current 118.75 per week).
• Family-friendly rights: Paternity and unpaid parental leave become day one rights, alongside a new entitlement to bereavement leave for earlier pregnancy loss.
• Flexible working: Employees can currently...

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