The Employment Rights Act 2025 signals large, phased changes to UK employment law, notably trimming the unfair dismissal qualifying period from two years to six months and pushing for broader trade union recognition and involvement across workplaces.

Redundancy rules will tighten collective consultation, boosting the protective award from 90 to 180 days and mandating more rigorous cross-site communication, clearer business-case transparency, and meaningful discussions with employee representatives during consultations.

Employers should update recruitment policies and contracts to reflect the new unfair dismissal rules, train managers in fair recruitment and documentation, perform a gap analysis with tools like Make UK’s planner, and plan a phased implementation aligned with the reform timetable.

Important dates to monitor include the October 2026 shift where tribunal claim time limits rise to six months, October 2026 expansion of sexual harassment and union protections, January 2027 when the unfair dismissal changes take full effect for qualifying period, and 2027 for further reforms spanning pregnancy protections, flexible working, bereavement leave, and NDA reforms.

Industrial relations reforms repeal key parts of the Trade Union Act 2016 and strengthen protections for industrial action, requiring clearer employer-union engagement and paving the way for easier formal union recognition, including in-writing rights to join and ongoing advisory duties on membership.

Unfair dismissal protections will apply to employees after six months of service from the relevant date; those already employed when changes take effect are covered if they have reached six months, while new hires after January 1, 2027 will reach eligibility only after six months of employment.