Government Unveils Timeline for Landmark Employment Rights Overhaul

The UK government has launched a 15-week consultation on equal pay reform and published a detailed implementation schedule for the Employment Rights Act 2025, signalling the most significant shake-up…

The UK government has launched a 15-week consultation on equal pay reform and published a detailed implementation schedule for the Employment Rights Act 2025, signalling the most significant shake-up of workplace protections in a generation. The consultation, running until October 27, 2026, proposes extending equal pay protections to ethnic minority and disabled workers while introducing mandatory pay transparency requirements — changes that will force employers across the country to overhaul their remuneration practices.

Equal Pay Reforms Target Race and Disability Gaps

The consultation outlines a phased approach to pay reform, beginning with transparency measures that would require employers to publish salary information in job advertisements. The government also plans to streamline the equal pay claims process and establish a new Equal Pay Regulation and Enforcement Unit to police compliance.

The second phase extends existing equal pay protections — currently covering sex — to include race and disability. Ministers are also examining ways to close outsourcing loopholes that have allowed some organisations to sidestep their equal pay obligations. The government has reaffirmed its commitment to mandatory ethnicity and disability pay gap reporting as part of the wider legislative package.

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Employment Rights Act 2025: Key Dates

Ministers have published a detailed rollout schedule for measures under the Employment Rights Act 2025, with several key changes taking effect through the second half of 2026:

• August 31, 2026: New regulations governing electronic and workplace balloting for trade unions come into force.
• October 30, 2026: Employers will be legally required to inform workers of their right to join a trade union. On the same date, unions gain a statutory right to access workplaces, with a legal presumption in favour of access unless it causes unreasonable interference.
• November 9, 2026: The time limit for breach of contract claims in Scotland increases to six months, following a similar change in England and Wales on October 1.
• December 2026: The government expects to confirm new tipping regulations and implement the Seafarer Protection Regulations.

More significant changes are scheduled for January 1, 2027. The eligibility period for unfair dismissal protection will drop from two years to six months of service. The statutory cap on compensatory awards — currently the lower of one year's gross salary or £123,543 — is also slated for removal.

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Right to Work Checks Tighten

Changes to the right to work regime under the Border Security, Asylum and Immigration Act 2025 take effect on October 1, 2026. The scope of required checks expands to include worker contracts, sub-contractors and online matching platforms.

Civil penalties for non-compliance rise to £60,000. However, legal experts note that a statutory defence remains available for organisations that maintain prescribed contractual protections, implement substitution controls and follow rigorous identity verification procedures.

Employers Struggle With Sick Pay and Dismissal Changes

An Acas and YouGov poll suggests many organisations are finding the transition challenging. According to the survey, 30% of employers identified the payment of Statutory Sick Pay from the first day of illness — a measure in effect since April 6, 2026 — as their most difficult challenge.

The survey also found that 27% of employers are concerned about implementing paternity leave as a day-one right, while 23% expressed apprehension about the upcoming unfair dismissal changes. In response, Acas has published new advisory guidance on managing probation periods, suggesting employers may need to shorten them to three or four months to adapt to the 2027 legislative shift.