Employment Rights Act 2025: are you ready?
Employment Rights Act 2025 (Royal Assent 18 December 2025, provisions phased to 2027)
When this applies
Two separate changes matter here. Since 6 April 2026, paternity leave and unpaid parental leave are day-one rights with no qualifying service, though paternity pay still needs 26 weeks' service. Separately, from 1 January 2027 the qualifying period for ordinary unfair dismissal falls from two years to six months and the compensation cap is removed. That second change is not a day-one right, but it is the one most likely to affect you, so review your probation periods and contracts before it starts.
When it does not apply
Employment Rights Act 2025 obligations apply to employers. Not applicable if you have no employees.
What is at stake
Employment tribunal claims. From 1 January 2027 the unfair dismissal qualifying period drops from two years to six months and the compensation cap is removed, so a dismissal that was low risk before becomes claimable much earlier. Existing contracts may need updating.
What to do
Review employment contracts and policies for the day-one paternity and unpaid parental leave rights that took effect on 6 April 2026, and review your probation process before the six month unfair dismissal qualifying period starts on 1 January 2027. Seek legal advice if your staff contracts predate the Act.
Where to get this sorted
Get your contracts updated for the new rules (Sprintlaw) →Ongoing legal cover (Sprintlaw Plus) →Check all 33 regulations for your business
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Check your business →Reviewed: 2026-09-12 · Source: official guidance