Employment Rights Act 2025: the questions employers ask
Straight answers on the dates, the dismissal change everyone gets wrong, zero-hours, sick pay and harassment. Accurate as at 12 July 2026.
Is unfair dismissal becoming a day-one right?
No. This is the single biggest misconception. The day-one proposal was defeated in the House of Lords and abandoned. From 1 January 2027 the qualifying period drops from two years to six months, not day one.
When exactly does each change take effect?
Royal Assent was 18 December 2025. The main tranche landed on 6 April 2026 (SSP from day one, day-one paternity and unpaid parental leave, holiday records kept six years, voluntary action plans), with the Fair Work Agency established on 7 April 2026. Tribunal time limits and third-party harassment are confirmed for 1 October 2026. The six-month unfair dismissal period, uncapped awards and the end of fire and rehire are confirmed for 1 January 2027. Guaranteed hours and mandatory action plans are indicative for 2027. The full dated list is on the timeline.
Does the six-month unfair dismissal change apply to staff I hired this year?
Yes, once they reach six months' service. Because the change lands on 1 January 2027, anyone hired on or before roughly 1 July 2026 will already have six months' service on that date. Contractual probation periods do not delay statutory rights.
I use zero-hours contracts. Do I have to offer guaranteed hours, and when?
The duty to offer guaranteed hours to zero-hours and qualifying low-hours workers is expected in 2027, but it is indicative, not fixed. The detail is under consultation, closing 25 August 2026. The government's stated preference is a low-hours threshold of 8 to 20 hours a week and a 12-week reference period. Start a rolling 12-week log of hours worked per worker now.
What is the reference period for guaranteed hours, and has it been decided?
Not yet. The government's preference is a 12-week reference period, but that and the low-hours threshold are subject to the consultation that closes 25 August 2026. Treat any figure as indicative until the regulations land.
Did Statutory Sick Pay really change, and from when?
Yes. Since 6 April 2026, SSP is payable from the first day of illness (the three waiting days are removed) and the Lower Earnings Limit no longer applies, so the lowest-paid staff now qualify.
What do I have to do about harassment by customers or suppliers?
From 1 October 2026 you can be liable for harassment of your staff by third parties such as customers, clients or suppliers, and the duty to take all reasonable steps to prevent sexual harassment is strengthened. Put an anti-harassment policy and a documented reasonable-steps record in place before that date.
Does my probation period still protect me from unfair dismissal claims?
A contractual probation period is separate from statutory employment rights and does not delay the six-month qualifying period. Review your probation and performance process so fair-dismissal decisions for under-six-month staff are documented before 1 January 2027, not after.
Which changes are confirmed and which could still move?
The April 2026 tranche is in force. Tribunal time limits and third-party harassment (1 October 2026) and the six-month unfair dismissal period, uncapped awards and the end of fire and rehire (1 January 2027) are confirmed. The guaranteed-hours regime and mandatory action plans are indicative for 2027 and depend on further regulations and consultation.
Do small businesses get an exemption?
Generally no. Most measures apply regardless of size. Where headcount matters, it is about thresholds rather than exemptions, for example the mandatory action plans aimed at larger employers. The checker flags where your headcount band changes what applies.
See which of these apply to your business
Answer two questions in the free checker, or get the dated PDF built for your headcount and contracts.