A Small Business Survival Guide — Employment Rights Act 2025
The Employment Rights Act 2025 became law in December 2025, introducing more than 28 significant changes to employment legislation — the most substantial reform in years. With further changes being phased in throughout 2026 and 2027, businesses across the UK are expected to face an additional £1 billion per year in compliance and operational costs.
Key Points
- Statutory Sick Pay now payable from day one of absence — lower earnings limit removed
- Paternity and parental leave become day-one rights for all employees
- New Fair Work Agency launching to enforce pay, holiday, and sick pay compliance
- Further reforms expected around unfair dismissal rights and employment tribunal processes
Source: iRecruit4 LinkedIn
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