Employment Rights Act roadmap: everything employers need to know

Big changes are coming for employers. The Employment Rights Act became law in December 2025 – and it’s being called a ‘generational shift’ for workers’ rights.

The reforms will roll out across 2026 and 2027, affecting businesses in England, Scotland, and Wales (Northern Ireland isn’t covered).

If you employ staff, or plan to in the future, here’s what you need to know as the new rules come into force.

• Employment Rights Act roadmap
• What’s included in the Employment Rights Act?
• How to prepare for the Employment Rights Act

Employment Rights Act roadmap

Reforms coming later in 2026

• the end of fire and rehire practices – where employers fire their employees and hire them back under worse conditions
• tightening of tipping laws 
• time limits on employment tribunals
• requiring employers to take “all reasonable steps” to prevent the sexual harassment of their employees

Reforms coming in 2027

• mandatory gender pay gap and menopause action plans (after being introduced on a voluntary basis in April 2026)
• more rights for pregnant workers – including protection from dismissal
• the right to bereavement leave when a close family member dies
• the end of exploitative zero hour contracts – including for agency workers
• more regulation of umbrella companies
• protection from unfair dismissal from the first day of employment – reducing the qualifying period for the right to claim unfair dismissal from 2 years to 6 months

Read the full list of changes in the roadmap on the government website.

What is the Employment Rights Act?

Want to know more about some of the biggest changes of the Employment Rights Act? Some of the major reforms from the Employment Rights Act include:

Zero hour contracts

From 2027, employers must offer workers employed on zero hour contracts a guaranteed-hours contract, which will be based on the hours they’ve worked during a 12-week period.

Zero hour workers will also be entitled to compensation if their shifts are cancelled or end early. You’ll also need to give them ‘reasonable notice’ ahead of any changes to their shifts.

However, employees have the choice to stay on a zero hour contract if they prefer.

Agency workers will be included in this new law – including eligibility for compensation if shifts are changed or cancelled.

Unpaid parental and bereavement leave

From 2027, employees will be able to access unpaid parental and bereavement leave from their first day of employment. This currently only applies to staff who’ve been employed for more than a year.

Read our full guide to unpaid leave to learn more about how to approach parental and bereavement leave as an employer.

The 6-month rule for unfair dismissal

From 1 January 2027, employees will be able to claim unfair dismissal after just six months in a job. That’s a major shift from the current law, with employees only able to make a claim after two years with a company.

This new right applies to anyone who’s been continuously employed for at least six months when they’re dismissed. So if you employed someone on or before 1 July 2026, they’ll be able to claim unfair dismissal from 1 January 2027.

For employers, the message is clear. You’ll now have just six months to decide whether a new hire is right for your business.

Flexible working

From 2027, the bill is also set to bring changes to how businesses approach flexible working – which is to be seen as the default from day one. Employers will now have to say yes to flexible working requests, unless they can prove it’s “unreasonable”.

If an employer rejects a request for a genuine business reason, they’ll need to provide a reason from a list of 8 acceptable reasons – as well as explain why their rejection is reasonable.

The right to request flexible working from the first day of employment was originally introduced in April 2024 as part of the previous government’s Flexible Working Bill but this new legislation goes further, by making flexible working the default.

Statutory Sick Pay

From April 2026, the government removed the lower earnings limit and three-day waiting period before employees can claim Statutory Sick Pay.

Employees can now claim statutory sick pay from the first day of illness, instead of the fourth. There’s also no minimum earning amount to be eligible.

Workers will now be entitled to 80% of their average weekly earnings or statutory sick pay (currently £123.25 a week) – whichever is the lowest.

Fire and rehire

Firing and rehiring refers to employees firing their employees and hiring them back under worse conditions – such as less pay, fewer hours contracted, or differing start and end times.

These changes will come into effect on 1 January 2027 (they were originally expected in October 2026).

Businesses caught firing and rehiring could be forced to pay compensation to the worker.

Protection for pregnant workers and new mothers

From 2027, there’ll be further protection in place to protect pregnant workers, as well as those returning from maternity leave. Further details of how this will work are yet to be announced, but protection from dismissal could be extended for up to six months after returning from maternity leave.

Fair Work Agency

From April 2026, a new Fair Work Agency was established, combining different specialist enforcement bodies to help protect workers’ rights, as well as offering guidance to employers on all the above.

More guides for employers

• How to write a staff handbook: a guide for small businesses
• How to create an onboarding process for your business
• HR toolkit: what HR tools do growing businesses need?
• What does employers’ liability insurance cover?