Employment Rights Act 2025
Employment Rights Act 2025 receives Royal Assent
The Employment Rights Bill was finally approved in the House of Lords after an extended parliamentary process, and received Royal Assent on 18 December 2025. The House of Lords gave way on the last major issue: removal of the cap on a compensatory award for unfair dismissal. The majority of the changes introduced by the legislation will be implemented gradually over the next two years according to the Government’s updated Timeline.
Among some of the most significant changes, the Act will reduce the qualifying period for ordinary unfair dismissal claims from two years to six months, remove the cap on the compensatory award for unfair dismissal, broaden the right to statutory sick pay and ban fire and rehire processes in most circumstances.
It will be essential for businesses to understand, plan for and implement these significant changes during 2026. CMS’ UK Employment team has produced numerous materials to help employers understand the nature and impact of the reform on their business operations and to support them with starting to prepare for the changes.
Employment Rights Act tracker
The Employment Rights Act has finally received Royal Assent after an extended parliamentary process and having been subject to extensive debate. The key changes for employers to be aware of are outlined in this tracker.
The Employment Rights Act 2025 webinar series
Slide title
CMS Law-Now articles
Employment rights reforms in 2026: round up of latest developments
The People Agenda 2026
Important changes for UK employers: the Employment Rights Act 2025
Employment Rights Bill: Government publishes further consultation on electronic balloting and review of employment rights for unpaid carers
Four consultations published on the Employment Rights Bill
Government launches Employment Rights Bill Implementation Roadmap
Employments Rights Bill – What’s new?
Don’t leave today’s work for tomorrow? Employment Rights Bill published outlining employment related reform
Employment Rights Bill Deep Dive #1 Day one rights – unfair dismissal, statutory sick pay and family friendly rights
Employment Rights Bill Deep Dive #2 Fire and rehire, zero hours workers and flexible working
Employment Rights Bill Deep Dive #3 - A new chapter for trade unions - changes to worker protections and collective bargaining
Further information:
For further information about how the changes are likely to impact on your business and the ways in which we can help you to prepare, please get in touch via your usual CMS Employment team contact or CMSEmployment.Team@cms-cmno.com.
