The Employment Rights Act 2025: the dawn of a new ERA?

In the words of Yogi Berra “The future ain’t what it used to be”

Often known in the 1950’s for his misplaced aphorisms, the late American baseball legend famously tried to sue the Hanna-Barbera company for defamation of character, believing that their language - mangling cartoon bear of a similar name was based on him.

Berra’s words seem strangely portentous, as we contemplate significant changes in the field of employment law.

Employment law has, for as long as I can remember, been one of the fields endeavour most buffeted by legislative change, as successive governments of different colours have sought to tip the balance of advantage in favour either of workers or employers.

After a period of relative stability over the last few years, however, we now stand on the threshold of a period of major change, as the far-reaching provisions of the Employment Rights Act 2025 come into effect.

Perhaps mercifully, the Government does not expect employers to swallow the elephant all in one gulp – the changes are mostly to be phased in in the course of this year and next.  The changes will be coming thick and fast, however.

Here is a sample of what to expect.

February brings new measures affecting trade unions, simplifying and easing some of the laws around strike action.  Dismissal for taking part in industrial action will be considered automatically unfair.

April will see more generous rules on statutory sick pay.  Statutory Sick Pay will become available from the first day of illness.  Also, paternity leave will become a day 1 right (the current requirement of 26 weeks service to qualify will go).  The current restriction on taking paternity leave after a period of shared parental leave will also be abolished.  Whistleblowers who disclose sexual harassment will be protected from unfair dismissal and detriment.  Employers will have to create action plans regarding gender pay gaps and menopause.  Initially involuntary, these action plans are expected to become mandatory in 2027.

Then in October, “fire and rehire” will effectively be made unlawful.  Dismissing someone only to rehire them on worse terms will be considered an automatic unfair dismissal, in most cases.  Employers will have a stronger duty to prevent harassment and will potentially be liable for harassment of staff by third parties, such as clients, workers and contractors unless they have taken “all reasonable steps” to prevent it.  Likewise, employers who fail to take “all reasonable steps” to prevent sexual harassment will face potential liability.  A quiet but nonetheless very significant change will be that the time limit for lodging a claim with an Employment Tribunal will double from three months to six months.  This is likely to increase the number of claims brought as disgruntled employees have more time in which to obtain legal advice and pursue the remedies that the law gives them.  Also in October, trade unions will get new rules on their right of access to workplaces and employers will have a new duty to inform employees of their right to join a union.

Further ahead, in 2027, very significantly, employees will have the right to claim unfair dismissal after just six months’ continuous service (reduced from the current two year requirement).  Also, a new statutory right to bereavement leave is expected to be introduced.

It may be going too far to describe these changes as “seismic”, but together they do mark a significant shift of the pendulum towards workers’ rights by the current Labour Government.  Employers will be well advised to take note of the coming changes of direction and adapt their practices accordingly.  To borrow another saying from the late Mr Berra “When you come to a fork in the road, take it”.

Well, we know what he meant.

This article was written by Richard Giles, a Partner specialising in employment law, advising employers and employees on workplace disputes, tribunal claims and settlement agreements. He can be contacted at Boys & Maughan Solicitors by email or on 01227 813408.