The Employment Rights Act 2025 came into force in December 2025 and will gradually introduce changes over the next two years. Most changes are planned for 2027, but some have already been implemented, with others to take effect later in 2026. The new act provides a framework for employee rights.
For employers, there may be financial implications. There is concern that increased costs may lead to redundancies or an increase in self-employed/consultancy vacancies rather than directly employed roles being offered to job seekers.
However, many of the changes have been welcomed by trade unions and workers’ rights groups. Here is a summary of the relevant changes introduced through the act.
Feb 2026
- Increased protections for those participating in industrial action and trade union activities.
Apr 2026
- Parental leave is becoming a day-one right. Further pregnancy and maternity rights will be introduced in 2027.
- Statutory sick pay will be paid from the first day of illness.
- Increased protective award for employees affected by collective redundancy whose employer failed to follow consultation requirements.
- Increased whistleblowing protections for disclosure of sexual harassment.
- Requirement for employers to create action plans around menopause and gender pay gaps.
Oct 2026
- Protection against fire-and-rehire practices.
- Employers required to take all reasonable steps to prevent sexual harassment. Additional planned changes to NDAs, voiding clauses that prevent the disclosure of harassment or discrimination.
- Employment tribunal time limit extended to six months.
- New measures for public sector outsourcing, to prevent differing terms and conditions between public sector and private sector employees.
- New negotiating body established for adult social care.
2027
- Protection from unfair dismissal will become a right from six months of employment (currently two years).
- A new right to bereavement leave — conditions such as pay and duration not yet publicised.
- Enhanced regulation of umbrella companies, allowing enforcement by the relevant bodies.
- Workers on zero-hours contracts will get the right to guaranteed working hours.
- Emphasis on flexible working, with employers who reject a request required to state the genuine business reason and explain why the refusal is reasonable.
In April 2026, the Fair Work Agency will be established to oversee and enact enforcement in relation to the act.
The Work Ahead:
ABS will be working with regulatory and membership bodies on behalf of our beneficiaries to provide a coordinated, well-informed response to needs within the community. There will be a renewed focus on social justice, looking at equitable and diverse representation within the profession.
In considering the changes to employment law, we will be examining what constitutes good practice in relation to employee experience and wellbeing. We will be developing a comprehensive package of wellbeing tools and support and celebrating champions of workplace wellbeing in the architectural and landscape architecture sphere.
