Now that the Employment Rights Act 2025 (ERA 2025) has finally become law, we can now turn our attention to when its various provisions will be implemented.
The Government’s roadmap sets out the following changes which will come into effect from October 2026.
Check out our GLU webinar catch up for more information on what the changes mean for you:
What the new Employment Rights Act 2025 means for you
Fire and re-hire
The ERA 2025 will restrict employers’ ability to use fire and re-hire by amending the law on unfair dismissal and making dismissals for failing to agree to a variation of terms automatically unfair. This will apply to dismissals that seek to make “restricted variations” to employee terms, including pay-related terms, total hours, shifts, holiday entitlements, bonuses and pensions. This will be the case unless the business can show:
- there is evidence of financial difficulties that were affecting, or were likely to affect, the viability of the business
- the changes were to eliminate, prevent, significantly reduce or significantly mitigate the effects of those financial difficulties
- the need to make the change in contractual terms was unavoidable.
As a result of these changes, the ability to use fire and re-hire to change terms and conditions will be significantly restricted, as any changes made with the aim of increasing profitability, or just reducing cost, will unlikely meet the criteria.
Sexual harassment
The ERA 2025 will amend the proactive duty, introduced in October 2024, to require employers to take “all reasonable steps” to prevent sexual harassment of their employees.
This will represent a step up from the October 2024 law, which does not require all reasonable steps to be taken.
Third-party harassment
Employers are not liable for third-party harassment (harassment from a client, customer, member of the public, etc), although under the proactive duty, employers must take reasonable steps to prevent sexual harassment from third parties. However, this will be changed by the ERA 2025.
Tribunal claims
The ERA 2025 will extend the time limit in which employees can make a claim to an employment tribunal from three to six months.
Informing employees of right to join a union
One of the reforms in the ERA 2025 is to introduce a new duty on employers to inform all new employees of their right to join a union.
Employers will be able to provide a separate statement, at the same time as they provide the statement of main terms of employment, which informs them that they have the right to join a trade union.
The Government has also stated that employers will be required to regularly inform workers of this right.
Tips
The ERA 2025 builds on existing tips legislation. It states that workers should decide how tips are allocated by requiring employers to consult with workers when developing or revising their tipping policies.
Trade unions
The ERA 2025 will introduce rights to allow unions access to workplaces, unless they are also used as a dwelling, in a regulated and responsible manner.
Additionally, employees will be protected from suffering a detriment as a result of taking part in industrial action.
Fair Pay Agreements
A Fair Pay Agreements (FPA) process in the adult social care sector will be established in October 2026 under the ERA 2025.
This will mean worker and employer representatives will have the means to come together to establish and agree minimum pay terms that will be binding on all employers and workers in that sector.
Takeaway
October 2026 sees another tranche of reforms come into effect, including big changes to employer’s ability to use fire and re-hire and a step up on harassment obligations. Employers who are looking to make any changes to terms and conditions should consider doing so sooner rather than later.
To be in a strong position to meet the obligations under the ERA 2025, employers should start now to plan how and when they will review and update their policies and practices.
For more information, catch up on our GLU webinar:
Employment Rights Act 2025: what’s changing in October 2026?
