The UK’s Employment Rights Act 2025 (ERA), which received Royal Assent on 18 December 2025, introduces wide-ranging reforms to UK employment law. The Act spans a broad range of topics, including family-related rights, flexible working, trade union law, zero and low-hours arrangements, unfair dismissal, fire and rehire, collective redundancies, sexual harassment, and enforcement. Some measures require secondary legislation, and implementation will be phased over the next two years.
Overview of Key Changes
Zero Hours, Low Hours, and Agency Worker Contracts
The ERA addresses perceived one-sided flexibility in employment relationships by requiring employers to make a guaranteed hours offer after the end of each reference period (expected to be 12 weeks), provide reasonable notice of shifts, and compensate workers for short-notice cancellations. These rights extend to agency workers and are supported by anti-avoidance provisions and new remedies in the UK Employment Tribunal.
Family-Friendly and Sick Pay Reforms
Employees will have day-one rights to statutory sick pay (SSP), paternity leave, and unpaid parental leave, alongside a new entitlement to unpaid bereavement leave, including for pregnancy loss before 24 weeks. SSP will no longer be subject to a lower earnings limit and will be payable from the first day of sickness absence, capped at the lower of the flat weekly SSP rate (currently 118.75) or 80% of normal weekly earnings.
Parents will be able to take paternity leave...
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