Employment Rights Act 2025: key reforms now in effect
Employers must ensure compliance as major workplace reforms took effect on 6 April, including expanded family rights and changes to statutory sick pay.
Employers must ensure compliance as major workplace reforms took effect on 6 April, including expanded family rights and changes to statutory sick pay.
The Employment Rights Act 2025 introduced some of its most substantial reforms on 6 April. These changes affect workplaces across the UK.
The reforms include:
The conversations we’ve been having with employers suggest many have been preparing for this moment. However, all organisations must be aware of the reforms that have now become law.
Employers now need to put their preparations into practice. This means making sure teams understand what’s changed and how they will be affected.
Line managers need particular support. They will face questions from their teams and need to understand how the changes affect day-to-day management.
Our Labour Market Outlook February 2026 found that more than half of employers surveyed (55%) expect a rise in workplace conflict from one or more elements of the Act.
This highlights the need for effective people management processes. The reforms to trade union legislation add another layer to this challenge.
“The focus for employers now needs to shift from preparation to compliance. To do this, employers need to share updated workplace policies and clearly communicate these to all staff."
This month's changes to trade union recognition pave the way for further reforms coming later this year. Many businesses will have worked with unions before, but for others it will be entirely new.
Employers should be aware of changes which give unions rights of access to every workplace. Now is the time to prepare for greater engagement with trade unions.
Smaller businesses often have limited resources and experience of labour market regulations. They could unintentionally fall foul of the law given the breadth of reforms happening now and later this year.
All employers should look at guidance from the UK Government, ACAS and bodies including the CIPD. Bringing in HR expertise may be needed.
April marks the first set of significant changes, but there’s a considerable roadmap from government outlining what’s still to come.
We’re supporting our members with practical guidance and will continue to engage with government to reflect insights from employers and HR professionals as further reforms move through secondary legislation.
CIPD members can access a range of resources to help navigate the Employment Rights Act 2025 and stay compliant with the reforms. Visit our ERA 2025 tracker page for practical support.
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