The UK Employment Rights Act 2025: What It Means for Employers and Employees

The UK Employment Rights Act 2025 is one of the most significant developments in employment law in recent years. Designed to modernise workplace rights and strengthen protections for workers, the Act introduces a range of changes that employers need to prepare for, and employees should be aware of.

While not all updates will take effect at the same time, the direction of travel is clear: workplaces are being encouraged to adopt stronger processes, clearer policies, and fairer working practices.

In this blog, we break down what the Act is, what changes are expected, and what it could mean for businesses and professionals across the UK.

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 has now been passed into law and forms part of a wider plan to bring employment protections in line with the realities of modern working life.

The Act covers several key themes, including job security, workplace fairness, and measures aimed at reducing exploitative practices. Some reforms will be introduced sooner, with others expected to be phased in through 2026 and into 2027.

Key changes employers should be aware of

The Act includes several headline changes that are likely to affect HR policies, employment contracts, and how businesses manage employee relations.

Statutory Sick Pay is expected to change from April 2026

Changes planned for April 2026 include Statutory Sick Pay being paid from the first day of illness (rather than the fourth), and the removal of the lower earnings limit for eligibility.

For employers, this is likely to mean updated policies, clearer internal processes, and stronger guidance for managers on how absence is recorded and managed.

What employees and jobseekers should know right now

For employees, these changes are largely positive. They signal stronger baseline protections and a push towards clearer, more structured employment practices across the UK.

However, if you’re currently exploring new roles, there is an important point to be aware of: some initial changes are expected to come into effect in April 2026.

That means if you’re interviewing in the coming weeks or accepting an offer soon, you may notice employers beginning to:

• Refresh HR policies and employment documentation
• Update onboarding processes and employee handbooks
• Tighten internal processes to ensure consistent people management

These are not red flags. In many cases, it can be a sign that the business is taking compliance seriously and investing in building a stronger workplace.

As always, it’s worth paying attention to:

• How clear the business is on working expectations
• Whether policies and progression frameworks are defined
• How confident and consistent the hiring process feels
• What the role will look like in practice, not just on paper

Why this matters now: good HR will become even more important

As employment law evolves, many organisations will need to review and upgrade their internal infrastructure.

That might include:

• Refreshing employment contracts and onboarding documentation
• Updating absence, leave, and flexible working policies
• Training managers to follow consistent people processes
• Strengthening performance frameworks and employee relations support

In some cases, this will require additional HR capacity and expertise, particularly for growing businesses or teams without an established HR function.

When fixed-term HR support makes sense

Not every business needs a permanent hire to manage change. For many organisations, the most effective solution is bringing in HR expertise on a fixed-term contract, for example 6 to 12 months, to review current processes, implement updates, and ensure the business is set up correctly.

This is particularly valuable if you need to move quickly but still want the reassurance that everything is being handled properly and professionally.

Need HR support in 2026? We can help

At Lily Shippen, we support businesses with hiring exceptional HR talent on a permanent, temporary, and fixed-term contract basis.

If you are preparing for policy changes, reviewing your people processes, or looking to build out HR capability this year, our team can help you map out the right plan and secure the right individuals to deliver it.

To discuss your hiring needs, contact us today.