The Employment Rights Act 2025 introduces the most significant changes to UK employment law in decades. Designed to strengthen worker protections and rebalance power in the workplace, the Act gives employees greater rights, earlier legal protection, and stronger remedies where employers act unfairly.

Key Employment Law Changes and When They Take Effect

Day-One Employment Rights – From April 2026

As an employee you will gain important rights from your first day of work, including:

Statutory Sick Pay cover
Paternity leave and unpaid parental leave
Increased protection against unfair treatment.

Unfair Dismissal Protection After Six Months – From January 2027

The qualifying period to bring an unfair dismissal claim will reduce from two years to six months.

This means:

Employers must justify dismissals much earlier
Probationary dismissals will be more open to challenge
Employees have stronger negotiating power when disputes arise

For employees offered a settlement agreement after only a few months in a role, legal advice will be particularly important.

Stronger Protection Against Workplace Harassment – From October 2026

Employers will have a legal duty to prevent harassment, including harassment by customers or third parties. This places a positive obligation on employers to create safe working environments. Employees experiencing bullying, harassment, or inappropriate behaviour will have stronger grounds to bring complaints or claims.

Greater Rights for Zero-Hours and Insecure Workers

The Act also improves protections for workers on zero-hours or variable contracts by:

Requiring clearer, more predictable working patterns
Providing compensation for cancelled shifts
Reducing exploitative scheduling practices

Get help from a Settlement Agreement Solicitor

As these new rights come into force, many employers will be reviewing contracts, restructuring employees’ roles, or offering settlement agreements to manage legal risk. If you have been offered a settlement agreement, are facing dismissal, or believe your rights have been breached, get help now and contact Clive Mackintosh, an experienced settlement agreement solicitor. I will; assess whether your employer has acted lawfully, advise you if your settlement offer is fair, and negotiate improved compensation or terms. For advice on your situation, including any settlement agreements get in touch today, call 0330 043 8845, email clive@solicitor.help, or request a call back.

Related Frequently Asked Questions (FAQs)

When does the Employment Rights Act 2025 come into force?

Most changes take effect between April 2026 and January 2027, depending on the specific right.

Can I bring an unfair dismissal claim after six months?

Yes. From January 2027, employees will only need six months’ service to bring a claim, rather than two years.

Do I need a solicitor to review a settlement agreement?

Yes. By law, a settlement agreement is only valid if you receive independent legal advice from a qualified solicitor.

What if my employer pressures me to sign quickly?

You should not sign anything without advice. Pressure tactics may strengthen your negotiating position.

Is legal advice free for settlement agreements?

As a responsible employer complying with the ACAS Code on Settlement Agreements , your employer will pay your legal fees as part of your settlement agreement.