Acas

Acas Webinar - Employment Rights Act 2025: April Updates, Required Actions and Implications

The Acas webinar outlined the Employment Rights Act 2025, detailing April‑2026 updates and the rollout schedule through 2026‑27. While the Act received Royal Assent, many provisions will phase in over the next two years, affecting dismissal, sick pay, and family‑leave entitlements. Key reforms include cutting the qualifying period for unfair‑dismissal protection from two years to six months, with the change effective 1 January 2027, and removing the compensation cap. Statutory sick pay will now start on the first day of illness and the lower‑earnings threshold is abolished, expanding coverage to low‑paid workers. Paternity and parental leave become day‑one rights, eliminating the previous 26‑week and one‑year qualifying periods. The Act also makes fire‑and‑rehire automatically unfair unless an employer can demonstrate severe financial distress. The webinar cited a case study of a part‑time café employee, Sophie, who, after the sick‑pay reform, qualifies for £80 a week despite earning below the former threshold. It also highlighted ongoing consultations on trade‑union protections, flexible working, and collective redundancy thresholds, with closing dates between April and May 2026. For employers, the legislation demands immediate action: revise contracts, update payroll and HR systems, train managers on new eligibility rules, and communicate changes clearly to staff. Failure to comply could trigger legal challenges and increase operational costs, while early adoption may improve employee morale and reduce presenteeism.