







When does the ERA 2025 come into force? The Act received Royal Assent on 16 December 2025 and its provisions have started coming into force already. See timeline.When should we start preparing for it? Now.What is the new qualifying period for unfair dismissal? The qualifying period for ordinary unfair dismissal will reduce from two years to six months’ continuous service. This change will take effect from 1 January 2027. From that date, many more employees will be able to bring unfair dismissal claims.Is the cap on unfair dismissal compensation really being removed? Yes. The Act removes both the 52-week pay cap and the statutory maximum cap on compensatory awards for unfair dismissal. This will mean a much higher incentive to high earners and older workers to bring claims for loss of earnings and other benefits.Will probation periods still be allowed? Yes. With unfair dismissal protection after six months’ service, probation periods will need to be actively managed rather than treated as a formality. Employers who allow probation to drift, fail to document concerns, or delay difficult conversations may find that they have lost the opportunity to exit fairly before legal protections apply. Workplace investigations will become very important in showing a fair process.Fire and Re-Hire: Can we still make redundancies? Yes. Genuine redundancies remain lawful. The new restrictions are aimed at dismissals used to force through changes to terms and conditions, not at dismissals arising from a genuine reduction in work or business closure.Will zero-hour contracts be banned? There is no ban on zero-hour contracts. Employers will be required to offer qualifying zero or low-hours workers a contract reflecting the hours they regularly work over a defined reference period. This is likely to significantly reduce the use of zero-hour arrangements in practice once the new rules come into force, expected in 2027. This is a very complicated area and much of the detail will be set out in future Regulations.What new duties do employers have around harassment? Employers will be required to take all reasonable steps to prevent harassment in the workplace, including harassment by third parties such as customers or clients. The duty to take reasonable steps to prevent sexual harassment will now fall within this all reasonable steps requirements. Failure to do so may result in liability. These measures are expected to take effect in October 2026.Has the time limit for bringing tribunal claims changed? Yes. The standard time limit for bringing Employment Tribunal claims will increase from three months to six months. This applies to all claims, including unfair dismissal and discrimination.What is the Fair Work Agency? The Fair Work Agency is a new enforcement body that will bring together the functions of several existing agencies. It will have wide powers to enforce employment rights, including statutory sick pay, holiday pay, national minimum wage and unpaid tribunal awards, and to impose penalties for non-compliance which means a financial and a reputational risk.
