Labour’s New Deal for Working People

The Employment Rights Act 2025
Following a long and bumpy journey through Parliament, the Employment Rights Act 2025 received Royal Assent on 18 December 2025, with some last-minute compromises most notably replacing the provisions which would have made unfair dismissal protection a day-one right, with a six-month qualifying period, but also a surprise removal of the statutory cap on unfair dismissal awards.

The Employment Rights Act 2025 is a key pillar of the Government’s Plan to Make Work Pay. The scope and significance of the 350-page Act should not be underestimated.

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