The Employment Rights Act 2025 is officially law in the UK as of 18 December 2025, marking a monumental shift in the way we work. For HR professionals and business owners, understanding the Employment Rights Act 2025 requires more than just a few milestones to cross.
While the Act became law in December 2025, it’s worth noting that the government has signaled that many of these major changes; specifically, the 6-month unfair dismissal qualifying period and the removal of the compensation cap. These changes are projected to take effect on January 1, 2027, while sick pay changes are expected in April 2026.
Under the Employment Rights Act 2025, the government has pivoted away from the originally proposed “day one” rights. Instead, the qualifying period for ordinary unfair dismissal will be reduced from two years to a six-month qualifying period. This adjustment means that after six months of service, employees will gain full protection, making the six-month qualifying period a critical deadline for HR teams.
Businesses should begin reviewing their probation management now, as the six-month qualifying period essentially limits the time available to assess a new hire’s suitability without significant legal risk. Failing to act within this six-month qualifying period could lead to costly tribunal claims.
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