Employment Rights Act 2025 Changes: Key Updates

The Employment Rights Act 2025 introduces significant changes to union recognition and workers’ rights, set to take effect on April 6, 2026. One of the most notable changes is that unions will no longer need to demonstrate that most workers in a proposed bargaining unit support recognition. This removes the previous requirement for petitions or similar evidence for union recognition.

Furthermore, when recognition is decided by ballot, unions will only need a simple majority of votes cast, eliminating the former 40% support requirement for union recognition.

In addition to changes in union recognition, the Act also enhances workers’ rights. Workers will now be able to claim statutory sick pay as soon as they become unwell. Moreover, they will be entitled to paternity and parental leave from the first day of employment, although parental leave will be unpaid.

Despite these advancements, the Labour Party’s plans for workers’ rights have faced criticism. Union leaders have described Labour’s proposals as “watered down versions” of previous commitments. Sharon Graham, leader of the Unite union, stated that Labour’s workers’ rights plans were now a “burnt out shell,” expressing concern over the party’s failure to back workers adequately.

Graham further remarked, “We are affiliated to Labour, but it’s harder and harder to justify that if they’re not backing workers.” This sentiment reflects a growing frustration among unions regarding Labour’s commitment to ending practices such as fire and rehire and zero hours contracts, which have not yet been fulfilled.

Additionally, it has been noted that paid leave is now deemed to be an “unaffordable” commitment under the new law, raising questions about the feasibility of supporting workers adequately in the long term.

As the implementation date approaches, observers are keenly watching how these changes will impact both workers and unions in the UK. The updated CAC Application and Response processes will also be in effect for new applications submitted on or after the effective date.

Details remain unconfirmed regarding the full implications of these changes, but the landscape of employment rights in the UK is poised for a significant transformation.