Employments Rights Act
From April 2026, several major reforms under the Employment Rights Act 2025 will come into force, creating new day-one rights for workers and significantly increasing employer obligations. These changes will require businesses to update their contacts, policies, and management practices to remain compliant.
The Employment Rights Act (ERA) is the main legal framework outlining employment protections in the UK. The ERA 2025 introduces major reforms to modernise and expand employment rights, affecting unfair dismissal, zero hours contracts, sick pay, union activity, and family leave.
Bookmark this page, as we'll be keeping it updated with everything you need to know.
Qualifying period reduced from 2 years to 6 months (effective by 2027).
Compensation cap removed, allowing potentially higher awards.
Industrial action protection strengthened: dismissals for taking part in lawful industrial action become automatically unfair (effective from February 2026).
Rights to guaranteed hours.
Reasonable notice of shifts.
Pay for short‑notice cancellations.
Applies to agency workers too.
Dismissals for refusing certain major contractual changes become automatically unfair.
Exception only where an employer faces severe financial difficulty.
Collective consultation rights strengthened.
Maximum protective award for failures increased from 90 to 180 days’ pay.
Redundancy rules updated so employers cannot bypass notification obligations (including maritime operators).
Notice period for industrial action reduced 14 to 10 days.
Picket supervisors no longer required.
Industrial action mandates last 12 months (was 6).
Chamber Support
Free Compliance Review
Preparing for these changes will require employers to review how their current contracts, policies and practices operate in reality. Small gaps in documentation or processes could quickly turn into costly compliance risks when the new rules take effect. Request an ERA Compliance Review through your membership, just email benefits@gmchamber.co.uk to claim.
24/7 Helpline
Membership includes access to a 24/7 HR advice line, manned by HR advisors who can support you through any questions you may have, and can guide you through updating your policies. You also have free access to a document library with over 700 documents ready to download and keep you compliant.
Lobbying Government
On behalf of the Chamber network, the British Chambers continue to liaise with government on the upcoming changes. The British Chambers of Commerce were one of the business bodies in the room negotiating for a 6-month qualifying period for unfair dismissal, rather than Day One rights. They are seeking to influence the secondary regulations to ensure any changes are practical and proportionate for businesses to implement.
Legal Support
If you need advice or more consultative support on these changes, then we can refer you into our specialist Legal Partners, Freeths, who are on hand to support our membership with these changes.
Let membership work for you.
Your account manager can provide you with practical support to navigate the pending changes.