Already in force (6 April 2026): SSP from day one, paternity and parental leave day one rights, collective redundancy protective award doubled to 180 days, sexual harassment qualifying whistleblowing disclosure, Fair Work Agency established.
October 2026: ET time limits extended from 3 months less 1 day to 6 months for most claims. Wrongful dismissal remains at 3 months.
1 January 2027: Unfair dismissal qualifying period reduces from 2 years to 6 months. Unfair dismissal compensation cap removed entirely. Fire and rehire restrictions in force.
What Is the Employment Rights Act 2025
The Employment Rights Act 2025 received Royal Assent on 18 December 2025. It is the most significant overhaul of employment law in the United Kingdom in decades. The government described it as delivering the first phase of its Plan to Make Work Pay. The Act amends the Employment Rights Act 1996, the Equality Act 2010, the Trade Union and Labour Relations (Consolidation) Act 1992, and a range of other statutes.
The changes are being introduced in stages across 2026 and 2027. Some provisions are already in force. Others come later in 2026. The most significant reforms to unfair dismissal rights come into force on 1 January 2027. This article sets out what is changing, when it takes effect, and what it means if you are thinking about an employment tribunal claim.
What Has Already Changed -- April 2026
Several ERA 2025 provisions came into force on 6 April 2026 and are already the law today.
Statutory Sick Pay from Day One
The three waiting days for statutory sick pay have been abolished. SSP is now payable from the first day of absence, not the fourth. The lower earnings limit, which previously disqualified lower-paid workers from SSP eligibility, has also been removed. If you were dismissed after a period of illness and your employer failed to pay SSP from day one for absences on or after 6 April 2026, they have breached the new rules.
Paternity and Parental Leave Are Now Day One Rights
Both statutory paternity leave and ordinary unpaid parental leave became day one rights from 6 April 2026. Employees no longer need any qualifying period before exercising these rights. Dismissal for exercising or seeking to exercise these rights would be automatically unfair with no qualifying period required.
Collective Redundancy Protective Award Doubled
The maximum protective award for failure to collectively consult on redundancies has doubled from 90 days pay to 180 days pay from 6 April 2026. If your employer is making 20 or more redundancies within 90 days and fails to follow collective consultation obligations, the maximum award is now 180 days pay per employee. This significantly increases the financial consequences of procedural failures during large-scale redundancy exercises.
Sexual Harassment Is Now a Qualifying Whistleblowing Disclosure
From 6 April 2026, making a disclosure about sexual harassment in the workplace is a qualifying disclosure under whistleblowing law. A worker who reports sexual harassment now has full whistleblowing protection against detriment and dismissal. If you reported sexual harassment and were subsequently dismissed or treated adversely, you now have an automatically unfair dismissal or detriment claim with uncapped compensation, in addition to any harassment claim under the Equality Act.
Fair Work Agency Established
The Fair Work Agency came into existence on 7 April 2026. It is a new enforcement body consolidating functions previously split across several agencies, with powers to bring tribunal claims on behalf of workers and to conduct workplace inspections.
What Is Changing in October 2026
ET Time Limits Extended from 3 Months to 6 Months
From October 2026, the primary time limit for bringing most employment tribunal claims increases from three months less one day to six months. This is one of the most practically significant changes for claimants. The change applies to most claims under the Employment Rights Act 1996, the Equality Act 2010, and the Trade Union and Labour Relations (Consolidation) Act 1992.
Wrongful dismissal is the notable exception. Wrongful dismissal will continue to have a three-month time limit after October 2026. This distinction matters if you are bringing both an unfair dismissal and a wrongful dismissal claim from October 2026 onwards -- you will have different deadlines for each.
If your dismissal or the act you are complaining of occurred before October 2026, the current three-month less one day deadline applies. Do not assume you have six months if your dismissal predated the change. Contact ACAS immediately regardless -- the ACAS period pauses your clock whatever the time limit.
What Is Changing on 1 January 2027
The two most significant changes for individual claimants come into force on 1 January 2027.
Unfair Dismissal Qualifying Period: 2 Years Reducing to 6 Months
Under current law, you need two years of continuous employment to bring an ordinary unfair dismissal claim. ERA 2025 reduces this to six months for dismissals on or after 1 January 2027.
Anyone with six months service on 1 January 2027 gains unfair dismissal protection on that date. The change applies to existing employees, not only to those hired after it comes into force. Anyone hired from around the end of June 2026 onwards and still employed on 1 January 2027 will therefore be protected from that date. The government predicts this will protect a further 6.3 million employees.
For claimants today in April 2026: if you have been dismissed and have less than two years service, you cannot bring an ordinary unfair dismissal claim under the current rules. Check whether you have an automatically unfair dismissal claim instead -- those have no qualifying period and are not affected by this change. Check whether your dismissal followed any protected event: pregnancy, a whistleblowing disclosure, a trade union activity, a flexible working request, a period of sick leave. These can all provide a route to an automatically unfair claim without the qualifying period requirement.
Unfair Dismissal Compensation Cap Removed
Currently, the compensatory award for unfair dismissal is capped at the lower of one year's gross pay or £115,115. ERA 2025 removes this cap entirely for dismissals on or after 1 January 2027. Compensation will be uncapped in the same way as discrimination and whistleblowing claims.
This is a significant change for higher earners. Under the current regime, a high-earning employee dismissed unfairly recovers no more than £115,115 in compensatory award regardless of actual loss. From January 2027, all actual losses can be recovered without a ceiling. The removal of the cap also changes settlement dynamics considerably -- employers will face genuine uncertainty about their maximum exposure, which increases their incentive to settle and at higher amounts.
For dismissals before 1 January 2027, the current cap continues to apply.
Fire and Rehire Restrictions
ERA 2025 makes fire and rehire automatically unfair for restricted variations -- changes to certain core employment terms including pay, shift patterns, and working hours. These restrictions also come into force on 1 January 2027. If your employer dismisses you and offers reengagement on materially worse terms on or after that date, the dismissal will in most cases be automatically unfair.
What This Means If You Have Been Dismissed Now
If you have been dismissed today in April 2026, the current two-year qualifying period for unfair dismissal applies. Your time limit is three months less one day from your dismissal date. Contact ACAS immediately -- the ACAS conciliation period pauses your clock. Do not wait for October 2026 or January 2027 changes if your dismissal has already happened.
If you have less than two years service, focus on automatically unfair dismissal and discrimination claims. Both have no qualifying period. Check the timeline of events carefully -- dismissal following a protected event is a strong indicator of automatically unfair dismissal.
Regardless of when your dismissal occurred, the procedural requirements for bringing a claim are the same: contact ACAS, obtain your certificate, complete the ET1 before your deadline, and prepare your witness statement and schedule of loss properly.
The ET Claim Guide Has Been Updated
The Complete Employment Tribunal Claim Guide available from Be Your Best Lawyer has been updated with ERA 2025 notices throughout. Each chapter affected by the upcoming changes includes a clearly marked callout box setting out what is changing and when. The current law is stated accurately for dismissals today, and the upcoming changes are flagged precisely so you know exactly what applies to your specific situation.