Local Government Lawyer

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Julie Bann, David Leach, Christian Grierson and Madina Sakhi guide readers through the new Employment Rights Act 2025.

The Employment Rights Act 2025 is finally here! Having received Royal Assent on 18 December 2025, marking the most significant overhaul of UK employment law in decades. With reforms rolling out in waves from April 2026 through 2027, public sector employers, including local authorities and central government bodies, must prepare for sweeping changes that will impact policies, procedures, and Day-One Family Rights.

Employers are encouraged to act now and consider their policies and procedures before these seismic changes start.

The Employment Rights Act 2025 marks a pivotal moment for organisations across the public sector and those working alongside them. For local authorities, central government bodies and their partners in sectors like construction, it introduces new layers of responsibility, from enhanced transparency in employment practices to strengthened protections for staff. Employers must review policies, update procedures, and equip managers with the right knowledge to ensure compliance and foster a fair workplace.

At the same time, the reforms offer significant benefits: clearer rights for employees, more robust dispute-resolution frameworks, and an opportunity to embed best practice across the workforce. While navigating this transition may seem daunting, a proactive, structured approach will help organisations turn compliance into a competitive advantage, building trust, resilience and operational excellence.

David Leach, Senior Associate, Sharpe Pritchard

April 2026 onwards

  • Day-One Family Rights
    • Paternity leave becomes a day-one right
    • Unpaid/ordinary parental leave
  • Statutory Sick Pay (SSP)
    • SSP starts on day one of illness.
    • Lower Earnings Limit scrapped – SSP extended to all employees.
  • Fair Work Agency Launch
    • New enforcement body with powers to inspect, issue penalties, and bring claims on behalf of workers.
  • Collective Redundancy Penalties
    • Protective award for failure to consult doubles from 90 to 180 days’ pay.
  • Trade Union Rights
    • Electronic voting introduced for ballots.
  • Whistleblowing Protections
    • Sexual harassment becomes a qualifying disclosure under whistleblowing law.
  • Equality Action Plans
    • Employers encouraged to create plans on menopause and gender pay gaps (likely mandatory from 2027).

October 2026 – Second Wave (Subject to Consultation)

  • Harassment Protections
    • Employers must take all reasonable steps to prevent sexual harassment.
    • Liability for harassment by third parties introduced.
  • Expanded Trade Union Rights
    • Duty to inform workers of their right to join a union.
    • Updated access rules and new rights for union representatives.
  • Other Key Measures
    • Two-tier code for public sector outsourcing – TUPE and Procurement
    • Adult Social Care Negotiating Body established.
    • ‘Fire and Rehire’ becomes automatically unfair dismissal.
    • Tribunal claim limit extended from 3 to 6 months.
    • Tipping policies require consultation and review every 3 years.

2027 Onwards – Planned Reforms

  • Unfair Dismissal
    • Protection after six months of employment
  • Pregnancy and Maternity Rights
    • Enhanced protections against dismissal for those on and returning from maternity.
  • Bereavement Leave
    • New statutory right (details on pay pending).
  • Zero-Hours Contracts
    • Right to request guaranteed hours.
  • Compensation for Cancelled Shifts
    • Workers entitled to pay for cancelled or rescheduled shifts.
  • Flexible Working
    • Employers must justify refusals with clear reasons.
  • Further Harassment Protections
    • Legal definition of ‘reasonable steps’ introduced.
  • Collective Redundancy
    • Rules apply across entire organisations.
  • Trade Union Framework
    • Extended protections and modernised industrial relations.
  • Umbrella Companies
    • Regulation tightened; enforcement expanded.

Guiding You Through Legislative Change

The Employment Rights Act 2025 introduces significant obligations for employers across the public sector and those working in partnership with it. Understanding these changes and implementing them effectively is critical, and we are here to support you.

Our team will provide clear, practical guidance through webinars and bespoke training sessions designed for organisations operating in complex regulatory environments. As the new requirements come into force, we’ll keep you informed with timely updates and actionable insights, helping you maintain compliance while planning strategically for the future.

Julie Bann is a Partner, David Leach is a Senior Associate, Christian Grierson is an Associate and Madina Sakhi is a Paralegal at Sharpe Pritchard LLP.


For further insight and resources on local government legal issues from Sharpe Pritchard, please visit the SharpeEdge page by clicking on the banner below.

Visit Sharpe Pritchard's new Building Safety Hub, focusing on The Building Safety Act 2022 and its wide-ranging impact.

This article is for general awareness only and does not constitute legal or professional advice. The law may have changed since this page was first published. If you would like further advice and assistance in relation to any issue raised in this article, please contact us by telephone or email This email address is being protected from spambots. You need JavaScript enabled to view it..

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