The most significant overhaul of UK employment law in a generation has arrived. Here’s what employers, employees, and businesses need to understand:
A LANDMARK MOMENT FOR UK EMPLOYMENT LAW
The Employment Rights Bill was introduced to Parliament on 10 October 2024, received Royal Assent on 18 December 2025, and is now the Employment Rights Act 2025. Described by the government as the first phase of delivering its Plan to Make Work Pay, the Act represents the most comprehensive rewrite of employment law the UK has seen in decades. The government is rolling out its changes in waves across 2026 and 2027, and the pace is already quickening.
At Lawdit, we advise businesses of all sizes, and this legislation touches almost every corner of the employment relationship: from how workers are dismissed to
how trade unions gain recognition of whether employees can be contacted outside of working hours. This article provides a structured overview of the key reforms and what they mean in practice.
THE UNFAIR DISMISSAL SHAKE-UP
Perhaps the most widely discussed element of the Act is the reform to unfair dismissal rights. Under the previous regime, employees had to accumulate two years of continuous employment before they could bring an unfair dismissal claim. The original bill proposed making this a day-one right — an ambition that was ultimately stepped back before Royal Assent.
The final form of the Act retains a qualifying period for unfair dismissal rights, albeit reduced from two...
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