Acas Webinar - Employment Rights Act 2025

Why It Matters

The Act dramatically expands employee protections while imposing new compliance obligations, forcing employers to redesign contracts, payroll, and HR processes to avoid costly penalties and reputational damage.

Key Takeaways

• Unfair dismissal protection reduced to six months, effective Jan 2027.
• Statutory sick pay starts day one, earnings threshold removed, April 2026.
• Guaranteed hours and shift‑notice rights for zero‑hour and agency workers, 2027.
• Paternity and parental leave become day‑one rights, qualifying periods eliminated, April 2026.
• Fair Work Agency will unify enforcement of wages, holidays, and modern slavery.

Summary

The Acas webinar introduced the Employment Rights Act 2025, which received Royal Assent and will roll out reforms across 2026‑2027. While some provisions, such as the repeal of minimum strike service levels, take effect immediately, the bulk of the changes are staggered to give employers time to adapt.

Key measures include cutting the qualifying period for unfair‑dismissal protection from two years to six months (effective January 2027) and removing the earnings threshold for statutory sick pay, which will now be payable from day one of illness (April 2026). Family‑related rights are also expanded: paternity and parental leave become day‑one entitlements, and bereavement leave will cover pregnancy loss. A landmark shift for flexible‑hour workers introduces a right to guaranteed hours after a 12‑week reference period and requires reasonable shift‑notice, with agency workers sharing the same protections.

The presenter highlighted ongoing consultations—such as those on enhanced dismissal protections for pregnant employees and fire‑and‑rehire restrictions—closing on 15 January 2026. Examples cited include the automatic unfair‑dismissal classification for fire‑and‑rehire unless severe financial hardship is proven, and the proposed business‑wide trigger for collective redundancy consultations, which would raise protective awards to 180 days’ pay.

For employers, the Act mandates a comprehensive audit of zero‑hour, low‑hour and agency contracts, updates to payroll and HR systems, and proactive communication with staff. Centralised redundancy tracking, revised shift‑scheduling protocols, and engagement with the new Fair Work Agency will be essential to mitigate legal risk and maintain workforce morale.

Original Description

This webinar dives into the essentials of the Employment Rights Act 2025. Discover key reforms and employer actions as Acas experts guide you through new UK employment law changes and practical implementation steps.

What you'll learn in this video:

- Overview of the Employment Rights Act 2025 and its phased rollout (2025–2027)

- Major changes to unfair dismissal, statutory sick pay (SSP), paternity/parental leave, and bereavement leave

- Expanded protections for pregnant women, parents, zero-hour/agency workers, and employees facing redundancy

- Creation of the Fair Work Agency and new enforcement measures for pay, holidays, and workers’ rights

- Practical steps for employers: updating HR policies, contracts, communication strategies, and system readiness

- Guidance on upcoming consultations, timelines, and how Acas can help with training, advice, and conflict resolution

Stay informed about the latest employment law updates by subscribing to our newsletter: https://obs.acas.org.uk/subscription/?&utm_source=era_webinar1&utm_medium=ytmwpera1&utm_campaign=mwpera

Or by visiting our website: http://www.acas.org.uk/employment-rights-act-2025?&utm_source=era_webinar2&utm_medium=ytmwpera2&utm_campaign=mwpera

For training on:

Families & flexibility - https://obs.acas.org.uk/eventslist.aspx?subregionid=-1&searchtopicid=65&subregion=--%20all%20regions%20--&searchtopic=families%20and%20flexibility?&utm_source=era_webinar3&utm_medium=ytmwpera3&utm_campaign=mwpera

Trade unions & representatives - https://obs.acas.org.uk/eventslist.aspx?subregionid=-1&searchtopicid=64&subregion=--%20all%20regions%20--&searchtopic=trade%20unions%20and%20representatives?&utm_source=era_webinar4&utm_medium=ytmwpera4&utm_campaign=mwpera

The changing face of employment relations - https://obs.acas.org.uk/viewevent.aspx?eventid=209874?&utm_source=era_webinar5&utm_medium=ytmwpera5&utm_campaign=mwpera

Employment law update: a master class - https://obs.acas.org.uk/viewevent.aspx?eventid=209775?&utm_source=era_webinar6&utm_medium=ytmwpera6&utm_campaign=mwpera

The information in this video was correct when recorded on 19th December 2025.