The majority of the Employment Rights Act 2025 ("the ERA 25") provisions require enabling legislation to bring them into force. While we have the benefit of the Implementation Roadmap (and the UK government recently confirmed it intends to stick to this) it is important to keep an eye on what is happening with commencement regulations, further substantive regulations and consultations.
Unfair dismissal changes
On 21 January the UK government published an updated unfair dismissal factsheet. This confirms that both the reduction in qualifying service (from two years to six months) required to bring an unfair dismissal claim and the removal of the cap on compensation awards will come into effect on 1 January 2027.
This means that from 1 January 2027 employees with six months or more service will be able to bring an unfair dismissal claim and the claim will not be subject to any compensation cap (albeit any compensation award will still be based on the individual's financial loss).
Despite previous suggestions to the contrary from the UK government, there will be no further consultation on the removal of the cap on compensation which is surprising given the significance of the change and the last-minute nature of its introduction.
First commencement regulations made
The Employment Rights Act 2025 (Commencement No. 1 and Transitional and Saving Provisions) Regulations 2026 ("the Commencement Regulations") bring a number of the ERA 25 provisions into force.
6 January 2026
On 6 January provisions were brought into force that give the UK government power to make the regulations that are necessary to give effect to the new rights the ERA 25 will introduce. These provisions are the first step towards the substantive rights coming into force. They do not give effect to any of those rights.
18 February 2026
The key provisions coming into force on 18 February relate to increased protection for industrial action and trade union activity and family-related leave. The changes are:
- New rights are brought into force in relation to paternity leave and shared parental leave in bereavement cases (where the mother or adopter has died). In these circumstances:
- paternity leave becomes a Day 1 right for bereaved partners; and
- bereaved partners will be able to take paternity leave after a period of shared parental leave.
- Provisions around the giving of notice and evidence required for all other (non-bereaved) employees who will gain these rights with effect from 6 April also come into effect.
- Provisions relating to trade unions and industrial action that come into effect via the Commencement Regulations include the strengthening of protections against dismissal for taking protected industrial action.
- A sizeable number of trade union-related measures come into force on 18 February by virtue of the ERA 25 itself rather than the Commencement Regulations. These include repeal of much of the Trade Union Act 2016. The UK government has produced guidance to help employers, unions and workers prepare for these changes. This explains the transitional provisions and why they are needed. For example, what will happen with cases brought under the Trade Union Act 2016 that are still in progress.
6 April 2026
The Commencement Regulations will give effect to the removal of the qualifying period for parental leave and paternity leave from 6 April. The removal of the prohibition on taking paternity leave and pay, after a period of shared parental leave and pay, is also brought into force on the same day, aligning with the rights for bereaved partners brought into force in February (see above).
A significant number of other rights not covered by the Commencement Regulations are also due to come into force on 6 April as per the UK government's Implementation Roadmap.
Draft Codes of Practice
January saw the UK government publishing new draft codes of practice. These are the Picketing: draft revised code of practice and the Industrial action ballots and notice to employers: draft revised code of practice. Both are being revised to bring them into conformity with the amendments to legislation brought about by ERA 25.
Employment Rights Act 2025 factsheets updated
In addition to the unfair dismissal factsheet referred to above, several other factsheets on various aspects of the Employment Rights Act 2025 were updated in January. These cover preventing workplace sexual harassment, public sector outsourcing, trade unions and Social Care Negotiating Bodies and Fair Pay Agreements. The factsheets include information on how the law is changing, proposed consultations and planned implementation dates.
Comment
We can expect to see more enabling regulations, draft codes of practice and consultations being published as the year goes on. This particular article will not be updated but we will publish a new Employment Rights Act update article each month moving forward.
