Employment Rights Act 2025

Gender pay gap and menopause action plans

Employers with 250 or more employees will be encouraged to publish the steps they are taking to reduce their gender pay gap and support employees through menopause from April 2026.

Flexible working

The Employment Rights Act 2025 will introduce stronger flexible working rules but no extra penalties.

Fire and rehire implementation delayed

Implementation of the fire and rehire provisions of the Employment Rights Act 2025 has been delayed until January 2027.

Unfair dismissal compensation

The Employment Rights Act 2025 will remove the compensation award cap on unfair dismissal entirely.

Unfair dismissal - reduced qualifying period

The Employment Rights Act 2025 will reduce the qualifying period from two years to 6 months’ employment.

Umbrella companies

The Employment Rights Act 2025 will amend the definition of ‘employment business’ – expanding it to include the actions commonly undertaken by umbrella companies – thereby bringing such companies within scope of the rules which govern the temporary labour market.

Bereavement leave - consultation

A consultation on implementing the provisions of the Employment Rights Act 2025 as regards bereavement leave has been published.

Statutory sick pay (SSP)

The Employment Rights Act 2025 makes two significant changes to the SSP scheme.

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