Employment Rights Act 2025

In brief

Major Act reshaping UK employment rights. Repeals most of the Trade Union Act 2016 (in force 18 February 2026); introduces day-1 protected disclosures on sexual harassment under s.23, day-1 SSP without a waiting period or lower earnings limit (ss.10–13, SI 2026/373 reg 2), day-1 paternity and unpaid parental leave (SI 2026/3), all in force 6 April 2026; from 30 October 2026 requires employers to take all reasonable steps to prevent sexual harassment of their employees (s.20, amending EA 2010 s.40A) and makes an employer liable where a third party (such as a customer, client or service user) harasses one of its employees in the course of their employment and the employer failed to take all reasonable steps to prevent it (EA 2010 s.40(1A)–(1C), inserted by ERA 2025 s.21); removes the statutory cap on compensatory unfair-dismissal awards and reduces the unfair-dismissal qualifying period from 2 years to 6 months, both from 1 January 2027 for dismissals whose effective date of termination falls on or after that date (s.25, SI 2026/559 regs 3–4); increases most employment tribunal time limits from three months to six for claims whose relevant date is on or after 1 October 2026, including EA 2010 s.123(1)(a) (s.152 and Schedule 12, SI 2026/954 regs 3–4); extends trade union rights to inform / access / accommodation (October 2026); and introduces a seafarer charter (December 2026).

Key provisions

• ERA 2025 s.20 — All reasonable steps to prevent sexual harassment (in force 30 October 2026) : Amends EA 2010 s.40A(1) so that an employer must take all reasonable steps, rather than reasonable steps, to prevent sexual harassment of its employees in the course of their employment. In force 30 October 2026 (SI 2026/1065 reg 3(a)); for conduct before 30 October 2026, s.40A(1) requires reasonable steps.
• ERA 2025 s.21 — Harassment of employees by third parties (in force 30 October 2026) : Inserts EA 2010 s.40(1A)–(1C): an employer must not permit a third party to harass its employee; it permits the harassment only if the third party harasses the employee in the course of their employment and the employer failed to take all reasonable steps to prevent the third party from doing so. A third party is anyone other than the employer or an employee of the employer. In force 30 October 2026 (SI 2026/1065 reg 3(b)).
• ERA 2025 s.22 — Power to specify reasonable steps (in force 30 October 2026) : Inserts EA 2010 s.40B: regulations may specify steps to be regarded as reasonable in deciding whether an employer has taken all reasonable steps to prevent sexual harassment of its employees, including carrying out assessments, publishing plans or policies, and steps on reporting and on complaint handling, and may require the employer to have regard to specified matters. Such regulations are subject to the affirmative procedure. In force 30 October 2026 (SI 2026/1065 reg 3(c)).
• s.23 — Sexual-harassment protected disclosures (in force 6 April 2026) : Amends ERA 1996 Part IVA to make explicit that disclosures about sexual harassment qualify as protected disclosures, removing prior uncertainty over which s.43B limb applies.
• ERA 2025 s.25 and Schedule 3 — Unfair dismissal: six-month qualifying period and no compensatory-award limit (in force 1 January 2027) : Amends ERA 1996 s.108 so that the qualifying period of employment for unfair dismissal is six months instead of two years, and omits ERA 1996 s.124 (limit of compensatory award etc). In force on 1 January 2027 (SI 2026/559 reg 3): the amendments have effect where the effective date of termination is on or after that date, including where the employee was dismissed before it, and do not have effect where it falls before it (reg 4(1)). Section 25(5), so far as it relates to Schedule 3 paragraph 5, and Schedule 3 paragraph 5 (a power to make further consequential amendments) were commenced on 1 July 2026 (reg 2).
• ERA 2025 s.152 and Schedule 12 — Employment tribunal time limits: three months to six (in force 1 October 2026) : Increases from three months to six months the time limit for making a range of claims to an employment tribunal, including unfair dismissal (ERA 1996 s.111(2)) and, by paragraph 18, a complaint of a contravention of Part 5 of the Equality Act 2010, by substituting 6 for 3 in s.123(1)(a). In force on 1 October 2026 (SI 2026/954 reg 3); the amendments do not apply where the relevant date occurs before that date (reg 4).
• phased commencement — Day-1 SSP, paternity, parental leave (6 April 2026); UD cap removed and UD qualifying period reduced to 6 months (1 January 2027, by effective date of termination); tribunal time limits three to six months (1 October 2026) : Removes most pre-conditions on statutory sick pay (ss.10–13, SI 2026/373 reg 2), paternity leave and unpaid parental leave (SI 2026/3), all from 6 April 2026; lifts the statutory cap on compensatory unfair-dismissal awards and reduces qualifying service for unfair-dismissal protection from 2 years to 6 months, both from 1 January 2027 where the effective date of termination is on or after that date (SI 2026/559 regs 3–4); and increases most employment tribunal time limits from three months to six for claims whose relevant date is on or after 1 October 2026 (SI 2026/954 regs 3–4).

When relevant

Rights Impact and Advisory engagements involving employment situations; particularly cases where the affected individual has less than two years' service (the unfair-dismissal qualifying period falls to six months from 1 January 2027, by effective date of termination), or where statutory sick pay / paternity / parental leave is engaged; whistleblowing-on-sexual-harassment cases under s.23; and, from 30 October 2026, the employer duty to take all reasonable steps to prevent sexual harassment (s.20) and employer liability for third-party harassment of employees (s.21); and, for claims whose relevant date is on or after 1 October 2026, the six-month employment tribunal time limit (s.152, Schedule 12).