The new Employment Rights Act 2025 (ERA 2025) which became law at the end of December, marks a pivotal moment in UK employment law, introducing wide-ranging reforms designed to modernise workplace protections and enhance employee rights. From stronger unfair dismissal and harassment protections to new practices on 'fire and rehire' and guaranteed hours, 2026 will bring significant change for employers.
Although many details remain subject to consultation and phased implementation, proactive preparation will be essential for organisations seeking to remain compliant, resilient, and trusted by their workforce.
Here are seven suggested steps to help employers prepare for the ERA 2025:
An important first step for any organisation will be to plan how the ERA 2025's provisions might affect your business – understanding the impact now will help save time and reduce risks later. Conduct a risk assessment to identify areas of vulnerability and potential opportunity. The findings will help inform your HR strategy and workforce planning, ensuring operational priorities align with the new legal framework.
Any risk assessment should include a review of the possible financial implications of the employment changes. The ERA 2025 is expected to result in increased costs for employers, including changes to statutory entitlements (such as Statutory Sick Pay), greater scope for disputes and additional administrative costs. Early financial planning will...
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