UK Employment Rights Act 2025: Phased Rollout Begins Late 2026

The Department for Business and Trade (DBT) has published an updated implementation schedule for the Employment Rights Act 2025, confirming a phased rollout of major labour reforms starting in late…

The Department for Business and Trade (DBT) has published an updated implementation schedule for the Employment Rights Act 2025, confirming a phased rollout of major labour reforms starting in late 2026 and continuing through 2027. The revised timeline, updated on July 21, 2026, gives UK employers specific dates for changes spanning harassment prevention, trade union access, unfair dismissal protections, and more.

Autumn 2026: Harassment Duties and Union Access

The most immediate regulatory shift arrives on October 30, 2026, when employers must take "all reasonable steps" to prevent sexual harassment in the workplace. This includes a new legal obligation to prevent harassment by third parties across all protected characteristics. Failure to comply could trigger a compensation uplift of up to 25% and enforcement action by the Equality and Human Rights Commission (EHRC).

The same date marks a significant overhaul of trade union relations. Employers will be required to inform workers of their union rights and grant unions access to workplaces. The reforms also simplify union recognition and derecognition processes while extending protections for union representatives and workers involved in industrial action.

Earlier in the season, on August 31, 2026, the government introduces electronic balloting for industrial action. This follows the repeal of the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Union Act 2016, which were removed in the winter and spring of 2026.

Tribunal Time Limits Double; Tipping Rules Finalised

From October 1, 2026, the window for workers to bring employment tribunal claims doubles from three to six months. By the end of 2026, the government also plans to finalise tipping reforms and seafarer protections.

These changes build on earlier 2026 implementations, including the doubling of collective redundancy protective awards and the removal of the Lower Earnings Limit (LEL) and waiting periods for Statutory Sick Pay (SSP), which took effect in April.

2027: Unfair Dismissal and Redundancy Overhaul

The most significant changes to individual employment rights take effect on January 1, 2027. On this date:

• The qualifying period for unfair dismissal claims reduces to six months.
• Compensation for unfair dismissal becomes uncapped.
• New restrictions on fire-and-rehire practices come into force. Dismissals intended to force changes to contractual terms will be considered automatically unfair, with only limited exceptions for businesses facing severe financial difficulties.

Further developments expected throughout 2027 include:

• Enhanced protections for pregnant women and new parents.
• Mandatory menopause and gender equality action plans.
• New regulations on umbrella companies and the use of non-disclosure agreements (NDAs) in harassment cases.
• Updated thresholds for collective consultation, requiring notice for 20 or more redundancies at an establishment or under a new unified threshold.

Consultations and Enforcement Underway

Alongside the Act's implementation, the Office for Equality and Opportunity launched a consultation on July 14, 2026 on equal pay reform. The consultation, closing on October 27, 2026, explores extending protections to disabled and ethnic minority workers and establishing a new enforcement unit.

The DBT is also seeking feedback on workplace monitoring technologies, with a consultation period ending on September 30, 2026. To oversee the new regulatory landscape, the government finalised a governance framework for the Fair Work Agency in early July 2026 — a centralised body designed to enforce employment law across the board.