The new Employment Rights Act 2025 brings some of the biggest workplace reforms in a generation, with key changes landing from April 2026 and further updates through to 2027 and beyond.
Below, we break down the most immediate changes, what they mean for employers, and how they’re likely to shape recruitment moving forward.
Day One Rights Expansion (From April 2026)
One of the most significant changes is the expansion of day one employment rights.
From April 2026:
- Statutory Sick Pay (SSP) will be available from day one, with no waiting period and no minimum earnings threshold
- Paternity leave and unpaid parental leave will become day one entitlements
- Employees will have the right to request flexible working from day one
What this means for employers: This will require a shift in onboarding and workforce planning. New starters will have immediate access to rights that previously required months of service.
Recruitment impact: While this may increase short term administration and absence considerations, it also creates a more attractive job market. Employers offering structured onboarding and clear policies will stand out, and that is where working with a recruitment partner can help ensure the right fit from the outset.
Statutory Sick Pay Reform (From April 2026)
The removal of the three-day waiting period and earnings threshold means more workers qualify for SSP, and sooner.
What this means for employers: There may be a small increase in absence related costs, particularly in sectors with high volumes of part time or lower paid roles.
Recruitment impact: Reliability and attendance will become even more important considerations during hiring. Agencies can support by pre-screening candidates and helping employers find individuals that meet business needs and culture fit.
Strengthened Whistleblowing Protections (From April 2026)
Protections are being extended so that disclosures around issues like sexual harassment are more clearly covered under whistleblowing law.
What this means for employers: Employers will need to ensure robust internal reporting processes and a culture of transparency.
Recruitment impact: A positive workplace culture will increasingly influence candidate decisions. Businesses that demonstrate fairness and accountability will have a competitive edge in attracting the best talent.
The Fair Work Agency (Launching April 2026)
A new Fair Work Agency will begin rolling out from April 2026, bringing enforcement of key employment rights under one body.
What this means for employers: Expect clearer enforcement, but also greater scrutiny, around areas such as minimum wage, holiday pay, and agency regulations.
Recruitment impact: Compliance will be more important than ever. Partnering with a reputable recruitment agency ensures processes, from pay to contracts, are handled correctly and in line with evolving legislation.
Changes to Redundancy and Fire and Rehire (From April 2026)
New rules will:
- Increase penalties for failing to follow collective redundancy consultation rules
- Make dismissals linked to contract changes, often referred to as fire and rehire, automatically unfair in most cases
What this means for employers: Greater care will be needed when restructuring teams or changing terms and conditions.
Recruitment impact: Workforce planning becomes more critical. Employers may look to more flexible hiring strategies, such as temporary recruitment to manage change responsibly.
Shorter Qualifying Period for Unfair Dismissal (Expected from Late 2026)
The qualifying period for unfair dismissal claims is set to reduce from two years to six months.
What this means for employers: There will be less time to assess suitability before employees gain full protection, increasing the importance of getting recruitment right first time.
Recruitment impact: This is where agencies add real value. Thorough screening, skills testing, and a robust matching selection process, this can reduce hiring risk and help employers make confident decisions earlier in the employment lifecycle.
Looking Ahead: 2027 and Beyond
While 2026 brings the most immediate changes, further reforms are expected from 2027.
- Guaranteed Hours for Zero and Low Hours Workers (Expected 2027): Employers will be required to offer guaranteed hours contracts to workers with regular working patterns.
- Improved Shift Notice and Compensation (Expected 2027): New rules are expected around providing reasonable notice of shifts and compensation for late cancellations.
- Extended Agency Worker Regulations (Expected 2027): Agency and umbrella company arrangements will face increased regulation to ensure fair and consistent treatment.
Final Thoughts
The Employment Rights Act represents a significant shift in the UK employment landscape, with a clear focus on improving fairness, security, and transparency for workers.
For employers, this means adapting to new responsibilities and reviewing existing processes, from onboarding and absence management to contracts and workforce planning. While some changes may introduce additional administrative considerations, they also support the development of more stable and engaged workforces.
From a recruitment perspective, these reforms are likely to place greater emphasis on hiring the right people first time, maintaining compliance, and building positive workplace cultures that attract and retain talent.
With the right preparation and support, businesses can navigate these changes effectively while continuing to grow and contribute to their local communities.
If you would like to discuss any of these changes and how they may impact your business or organisation, please contact us on 01484 351010 or at staff@stafflex.co.uk