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Friday, March 13, 2026

Employment Law Changes 2025–2027: Key Updates for Businesses - Freeths

  • Case Law

Legislation

Employment Rights Act

The Employment Rights Act marks a transformative moment in UK employment law. Its phased implementation from 2025 through 2027 introduces sweeping changes that will affect recruitment, workforce management, and compliance strategies. As an employer, understanding these developments is critical to maintaining legal compliance and safeguarding your business against increased litigation risk.

The Government has published a Roadmap for Implementation with an indicative timeline for the proposed reforms. There were some delays in the passage of the bill through the House of Commons and House of Lords, with Royal Assent only being granted on 18 December 2025, so it is possible that these timelines might change.

Requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees

Introducing an obligation on employers not to permit the harassment of their employees by third parties

Earlier protection from unfair dismissal

This proposed reform changed dramatically in November 2025. Until then, it was billed as ‘Day One’ protection. This has now changed to:

  • All employees will be protected from unfair dismissal after 6 months’ service
  • The removal of the cap on unfair dismissal compensatory awards (currently capped at the lower of a years pay or 118,223)

This will mean that more employees will be protected from unfair dismissal and that there will be greater financial exposure for employers, particularly...



Read Full Story: https://news.google.com/rss/articles/CBMiY0FVX3lxTFBwblV2NnZULTVhLXJoWkdDWjEw...