PRIMEHR · CHARTERED HR FOR UK SMES · REMOTE & UK-WIDE info@primehr.uk

Legislation Hub

The Employment Rights Act 2025. Plainly explained.

The biggest employment law reform in twenty years. Four headline changes for UK SMEs, and what you should be doing now.

01 From January 2027

Unfair dismissal

Qualifying period reduces from two years to six months. Probation processes, manager training, and documentation must be tightened. The statutory cap on unfair dismissal compensation is also being removed from the same date, significantly increasing potential financial exposure for employers.

02 From 6 April 2026

Statutory Sick Pay

£123.25 per week. Payable from day one with no waiting days. Lower earnings limit removed. All employees qualify.

03 Day-one right

Flexible working

Requests are a day-one right. Employer must respond within two months. Refusals must be justified against specified business grounds.

04 Restricted

Zero-hours contracts

Workers with regular hours can demand a guaranteed-hours contract reflecting their actual pattern over a reference period.

Get compliant

Every PrimeHR document pack is updated for ERA 2025.

Contracts, policies, and templates ready to drop in. From £149+VAT.

See the packs