Employment Rights Act 2025: what it means for you

In December 2025 the Employment Rights Act 2025 became law, and the UK government describes it as the “biggest upgrade to workers' rights in a generation.”

Originally introduced to Parliament as the Employment Rights Bill in October 2024, the Act is a central part of the government's plan to “Make Work Pay”. It will affect virtually every employer and employee in the country.

But what does it mean in practice?

If you work in the public sector, manage recruitment for a council, trust, or charity, or you're looking for your next role: here's what you need to know.

Employment Rights Act 2025: the key changes explained

The Act covers a lot of ground, so we've focused on the changes that matter most if you work in or recruit for the public sector.

Not everything takes effect at once. The government is rolling changes out in phases across 2026 and 2027, using the UK’s common commencement dates of 6 April and 1 October each year.

Unfair dismissal protection after six months, not two years

One of the headline changes in the Employment Rights Act 2025 is a reduction in how long you need to have been in a job to claim unfair dismissal.

Currently, employees must wait two years before they're eligible, but under the new rules, that drops to just six months. This takes effect from January 2027.

The previous statutory cap on unfair dismissal compensation has also been repealed, meaning there is currently no upper limit on what a tribunal can award. However, the government has retained the power to introduce a new limit in the future.

For employers, this means you need strong recruitment and onboarding processes. Getting the right person into the right role from the start matters more than ever, and probation periods should be well structured with clear expectations.

For employees, it means you'll have meaningful protection much earlier in a new role. This is a real boost if you're considering a career move.

Zero-hours contracts: new rights to guaranteed hours

The Act introduces new rights for workers on zero-hours and low-hours contracts. After a set review period (estimated at 12 weeks), employers will need to look at the hours a worker has actually been doing and offer them a contract that reflects those hours.

Workers will also have the right to a reasonable notice period before shifts as well as compensation if shifts are cancelled, moved or cut short at short notice. These changes extend to agency workers too.

This is particularly relevant for NHS trusts, local authorities and charities that rely on bank or casual staff.

These changes are expected to come into effect in 2027, but now is the time to start auditing how your organisation uses these types of contracts.

Fire and rehire restrictions under the Employment Rights Act 2025

The practice of dismissing employees for refusing changes to core contract terms is commonly known as "fire and rehire." This is now classed automatically as unfair dismissal under the Act.

The only exception is where an organisation is in severe financial difficulty and has no realistic alternative. The restriction also covers "fire and replace", where employees are replaced with agency workers or contractors doing largely the same work.

For organisations navigating budget pressures and restructuring, this is an important change to understand and plan for.

Flexible working rights strengthened from 2027

The right to request flexible working from day one of employment already exists, but the Employment Rights Act 2025 strengthens it further.

From 2027, if an employer turns down a flexible working request, they'll need to explain why against one of eight statutory grounds and demonstrate that the refusal is reasonable.

For public sector employers competing for talent, flexible working is already a leading factor in recruitment and retention, thanks to the work-life balance it supports. These changes will raise the bar further, and job seekers will expect a clear, fair process.

Day-one rights to statutory sick pay and parental leave

From 6 April 2026, statutory sick pay (SSP) will be available from day one of employment.

Previously, workers had to wait three days before they could receive any sick pay, and those earning below £125 per week didn't qualify at all. Both of those barriers have now been removed, meaning more people are covered, and they're covered sooner.

Paternity leave and unpaid parental leave also become day-one rights from the same date.

These are among the first changes to take effect under the Act, so if you're an employer, you should already be preparing.

For job seekers, it means better financial protection right from the start of a new role. This is particularly welcome in frontline sectors like health, education and social care where these entitlements really matter.

Stronger protections against workplace harassment

The duty of employers to prevent sexual harassment has been strengthened significantly. Under the Employment Rights Act 2025, employers must take "all reasonable steps" to prevent harassment.

There's also a new obligation to prevent harassment by third parties, such as service users or members of the public, and whistleblowers who report sexual harassment now have explicit legal protection.

On top of this, any clause in a non-disclosure agreement (NDA) that tries to stop a worker speaking out about harassment or discrimination is now invalid.

For public-facing organisations in the public sector, where staff regularly interact with members of the public, the third-party harassment duty is especially significant.

What the Employment Rights Act 2025 means for job seekers

If you're looking for work, the Employment Rights Act 2025 is broadly good news. You'll have stronger protection earlier into your role, more predictable working patterns, and a fairer process if you request flexible working.

It's worth remembering that many public sector employers already go beyond the legal minimum when it comes to employment rights. It's one of the reasons public sector careers continue to attract people who want to make a difference.

These changes bring the wider employment market closer to the standards the best public bodies have set for years.

When you're applying for roles, don't be afraid to ask prospective employers how they're preparing for the new legislation. It's a fair question, and a good employer will welcome it.

What the Employment Rights Act 2025 means for public sector employers

If you manage recruitment or HR for a public sector organisation, there are several practical steps to take now.

The government is also setting up a new body called the Fair Work Agency (FWA), launching in April 2026. This is like a one-stop shop for enforcing workers’ rights.

The FWA will make sure employers pay the national minimum wage, follow holiday pay rules, and treat agency workers properly. Importantly, the FWA will have the power to take employers to tribunal on behalf of workers, so there's a real incentive to make sure you’re meeting the expected standards.

Regarding tribunals, the time limit for employees to bring a claim after an incident has been extended from three months to six months. That's a longer window for potential claims, which makes thorough record-keeping and fair processes even more important.

Start by reviewing your employment contracts, onboarding processes and policies on flexible working, zero-hours arrangements and harassment. You can consult the government's implementation roadmap for the full timeline, and seek professional legal advice where you need it.

What to do now

Whether you're an employer or a job seeker, the key message is the same: don't wait. The Employment Rights Act 2025 is already law, and the first wave of changes take effect in early 2026. More will follow throughout the year and into 2027.

For employers: review your contracts, policies and recruitment processes against the new requirements. Use the government's roadmap and Acas guidance to plan ahead.

For job seekers: understand your rights under the new framework and look for employers who are taking these changes seriously. The public sector remains one of the best places to build a career with purpose, security and progression.

If you're a public sector employer looking to connect with the right candidates, or a job seeker exploring your next opportunity, Jobs Go Public has been bringing good people together since 1999.

Browse our latest roles or get in touch to find out how we can help.

This article is for general information purposes only and does not constitute legal advice. Employers should seek professional legal guidance tailored to their specific circumstances. Information in this article is accurate as of March 2026 and is based on the Employment Rights Act 2025 as enacted and the government's published implementation roadmap.