Employment Rights Act 2025

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.

Fair Work Agency

The Employment Rights Act 2025 creates a new state enforcement agency - the Fair Work Agency (FWA) - scheduled to come into being in April 2026.

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