With increased risk at the start of employment and costs rising, employers can’t afford to get hiring wrong by waiting for legislation to be enacted, says Claire McCartney
As labour market pressures mount and operational costs increase, the Employment Rights Act 2025 (ERA 2025) is poised to significantly reshape how organisations approach hiring and workforce planning.
The Act changes how employers recruit, structure roles, onboard people and manage risk from the moment a vacancy is approved.
With the unfair dismissal qualifying period set to fall from two years to six months, the reforms will bring risk forward in the employment lifecycle.
That makes mid-2026 a critical window for HR to review hiring and planning strategies ahead of unfair dismissal changes in January 2027.
Organisations that proactively adapt their approach in line with the Act will be best placed to manage these risks, unlock stronger workforce performance and deliver better business outcomes.
But against this backdrop, the key question for HR is how should it respond in practice?
With a shorter window to identify and address issues, employers will need to tighten how they hire, onboard and manage new starters from the outset of the employment lifecycle. Three areas stand out as immediate priorities:
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