The Employment Rights Act 2025 represents a significant reform of UK employment law, aimed at enhancing worker protections, improving job security, and strengthening enforcement mechanisms. The law is slowly being rolled out and introduces substantial changes affecting employment practices across all sectors.
The most significant change that businesses are gearing up for is the reduction of the qualifying period to bring claims, which currently stands at two years and will reduce to just two months. The ability to initiate an Employment Tribunal claim in as little as six months marks a significant shift in the bargaining position of employees. This change will be effective from 1st of January 2027.
Another key change is the limitation period for bringing claims, which is currently three months from the date of termination and is set to increase to six months from October 2026. A summary of all the changes that have been implemented and are due to be implemented can be found here: https://www.acas.org.uk/employment-rights-act-2025.
This improved Employment Rights Act represents a shift towards a more employee-centered environment. Small business owners and HR managers need to be very mindful of these changes.