Constantine Law's 5-point plan to help employers navigate incoming Employment Rights Act 2025 changes
Significant Employment Rights Act 2025 changes are due to be implemented from 30 October and 1 January 2027. Below, we set out what is changing in each area and the practical steps we recommend you take before the new rules take effect.
1: Review and reduce probationary periods
The qualifying period for bringing an unfair dismissal claim reduces from two years to six months, so employees employed on or before 1 July 2026 gain protection against unfair dismissal immediately. At the same time, the existing cap on compensatory awards is removed entirely, exposing employers to uncapped compensation.
Action for employers to take now:
Undertake an audit of all employees with less than two years' service to consider any performance concerns, misconduct or potential redundancy ahead of the January changes.
For employees who started after 1 July 2026, deal with the same before they achieve 25 weeks’ service by 25 December 2026.
Ensure any probationary periods for employees employed after 1 January 2027 are 3 or 4 months, with the ability to extend for another month.
Review any disciplinary policies that are contingent on length of service.
2: Review performance management procedures and provide training for managers
Effective performance management will become essential from 1 January 2027. With a shorter qualifying period for unfair dismissal claims, you will have less time to identify and address problems with new employees
Action for employers to take now:
Implement robust probationary period policies to ensure that all managers understand their responsibilities.
Provide accurate and direct feedback to employees during appraisals and keep detailed records.
Train the managers responsible for performance to have ‘hard conversations’.
Keep documentary evidence of the reasons why termination actions were taken – this will be critical to the fairness of any dismissal.
3: Review contracts and introduce and necessary changes
From 1 January 2027, it will become more difficult for employers to change key contractual terms (e.g. pay and hours) under new ‘fire and rehire’ restrictions.
Action for employers to take now:
Audit contracts and handbooks now and insert clear, well-drafted variation clauses (e.g. for pay, hours, location) while this remains straightforward.
Bring forward any anticipated contractual changes ahead of the deadline.
Non-renewal of fixed-term contracts on expiry can result in an unfair dismissal claim. Therefore, those expiring after Jan 1 2027 need to have justifiable reasons for the non-renewal.
4: Review anti-harassment policies, risk assessments and staff training on harassment
From 30 October 2026, the duty to prevent sexual harassment will be strengthened, and employers will be liable for any harassment committed by third parties, such as customers, suppliers and contractors working on site, where reasonable preventative steps have not been taken.
Action for employers to take now:
Conduct or refresh sexual harassment risk assessments.
Update policies to cover third-party conduct.
Roll out training for all staff, with additional guidance for managers on handling complaints.
Important: Since April 2026, reports of sexual harassment can qualify as a protected disclosure in a whistleblowing claim under ERA 2025.
5: Trade union access rights
From 30 October 2026, trade unions will gain the right to access workplaces employing 21 or more staff to recruit new members, regardless of whether the organisation has previously had any form of union representation or involvement. This access can occur as frequently as weekly, and fines can be imposed on employers that refuse it.
Action for employers to take now:
Inform workers of the imminent introduction of this right and be prepared (for all medium and large employers) to receive requests from unions to visit your offices.
Meetings can occur weekly: think about where they will take place.
Employers obliged to inform all workers of their right to join a union from 1 January 2027.
If you require further advice or have any questions about how to navigate these changes, contact us at mail@constantinelaw.co.uk.
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