UK Employment Rights Act 2025: More secure work and basic employment rights

As we settle into 2026, many employers will be turning New Year intentions into action plans. 

The Employment Rights Act 2025 tops the HR legal to-do list for the year ahead, with significant strategic and operational work required across the coming 12–18 months.

Our previous blog outlined the key upcoming changes.  As promised, we have materials to help your organisation plan ahead.

Our first Employment Rights Act 2025 reference table focuses on changes that go right to the heart of the employment relationship: strengthening unfair dismissal protection and curbing unfair contractual arrangements and variations. 

Unfair dismissal reform has dominated recent media coverage. In a U-turn during parliamentary ping-pong at the end of last year, the Government has replaced its proposed “day one” protection with a six-month qualifying period. At the eleventh hour, it also removed the unfair dismissal compensation cap, prompting widespread concern across the business community. 

The Government’s recent impact assessments offer little detail and downplay the potential impact of the cap’s removal on businesses, especially those with high-earners. Employers hoping for mitigating measures or alternative options will be disappointed, as none are proposed. However, upcoming stakeholder meetings may offer an opportunity to raise concerns and to push for concessions in guidance.

There is also an overview of the new protections for zero-hour, low-hour and agency workers. 
Our next table will look at family-friendly rights and equality changes under the 2025 Act. 
In the meantime, if you have any questions about the measures discussed in this table, please contact the team. 

A&O Shearman UK Employment Team
 

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