The Employment Rights Act 2025
The Employment Rights Act 2025 is the biggest upheaval to employment law in a generation.
Nexus is offering a free 30-minute consultation to discuss how these changes might impact your business.
Free 30-minute consultation
Changes to Unfair Dismissal Rights
From January 2027, the requisite service for an unfair dismissal claim is reduced from 2 years to 6 months, and the statutory cap for unfair dismissal claims is also being lifted.
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This change impacts existing employees as well as new employees.
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Businesses must consider how to effectively manage employees through their probation period to avoid costly litigation.
Strengthening of Trade Union Rights
The new Act has simplified the recognition process for trade unions, so if your business isn't currently unionised, you need to decide what approach you would like to take if you receive a request for recognition.
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You will also need to ensure you are informing employees of their rights to join a trade union.
Sexual Harassment
Sexual harassment legislation was strengthened in the 2023 amendment to the Equality Act, which created a requirement for businesses to take reasonable steps to prevent sexual harassment.
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The Employment Rights Act 2025 will strengthen this further, requiring ALL reasonable steps to be taken to prevent sexual harassment.
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From October, the liability for third party harassment will pass to the employer. Third parties could be contractors, suppliers, visitors (or parents if you are in the education sector).
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It is important that policies, procedures and risk assessments are reviewed and updated to reflect these changes.
End to Fire and Rehire
From January 2027, dismissal and re-engagement is likely to be all but impossible, removing the security blanket for employers who are wishing to change terms and conditions of their employees.
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For employers looking to make changes to terms, there is still time to do so before this change takes effect.
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If you are looking to make changes, we can help to ensure the process goes smoothly.