Employment Rights Act: Is your HR team ready?

The Employment Rights Act 2025 is not a single deadline. It's a phased set of obligations, some of which became law in April 2026, with further changes landing through late 2026 and into 2027. For HR and Benefits leaders, the practical question isn't just "are we compliant", it's "can we prove it."

That distinction is the theme running through the entire Act. A written policy used to be enough. Under the ERA, most employers will need to show that support was actually used, actually worked, and was actually consistent.

What's already law, as of April 2026

Several ERA provisions are already in force and already create exposure:

• Statutory sick pay from day one. New employees no longer wait three days or need to earn above a minimum threshold to qualify — a change that particularly affects part-time and lower-paid staff.
• Written justification for flexible working refusals. "Business needs" alone is no longer a defensible reason to decline a request.
• Expectation of a published or in-progress menopause and gender pay gap action plan for large employers (250+ staff), ahead of this becoming compulsory in 2027.
• Proactive Fair Work Agency audits. Employers can now be investigated over wellbeing and employment practices without a complaint ever being made — a meaningful shift from the complaint-led enforcement HR teams are used to.
  
  

What's coming through late 2026 and 2027

A second wave of changes shortens timelines and widens liability:

• Unfair dismissal claims after 6 months of employment, down from two years — pulling legal exposure much earlier into someone's tenure.
• Extended claim windows from October 2026, with the time limit to bring a claim rising and Acas conciliation periods lengthening in parallel — meaning claims can be lodged many months after someone has left the organisation.
• Employer liability for third-party harassment, including from clients and customers, from October 2026.
• Compulsory menopause and gender pay gap action plans in 2027, with an evidentiary bar that goes beyond having a policy on file.
• Extended bereavement leave, including pregnancy loss, expected as a day-one right in 2027.
  
  

Where the risk sits

Most organisations already have some form of menopause policy or general wellbeing support. Far fewer can show what happened when an employee actually used it — who accessed support, what changed as a result, or whether a health issue was addressed before it escalated into a grievance or tribunal claim.

The other significant, and often underestimated, risk is inconsistency. Legal exposure under the ERA is usually about one manager or one office applying that policy well, and another not applying it at all. With tribunal backlogs currently running several years, organisations aren't just defending decisions made months ago. They're defending decisions made years ago, often after the manager involved has left and the details have faded from memory. An email thread isn't an audit trail.

How prepared is your organisation, really?

Reading the requirements is one thing. Knowing where your own organisation actually stands — point by point, across sick pay, flexible working, menopause action plans, Fair Work Agency exposure, dismissal timelines, harassment liability, and bereavement leave — is another.

We've put together a 10-point ERA readiness check for HR and Benefits leaders, scored so you can see exactly where you're exposed today and what to prioritise before 2027.

Get the ERA Action Plan: A 10-Point Readiness Check →

Frequently asked questions

What is the Employment Rights Act 2025?
The Employment Rights Act 2025 is UK legislation reforming employment protections, rolled out in phases. Some provisions — including day-one sick pay, flexible working justification requirements, and Fair Work Agency enforcement powers — became law in April 2026. Further provisions, including a reduced unfair dismissal qualifying period, extended tribunal claim windows, and compulsory menopause action plans, come into force through late 2026 and 2027.

When does the Employment Rights Act come into force?
The Act is being introduced in stages rather than on a single date. Sick pay changes, flexible working rules, and Fair Work Agency powers are already in force as of April 2026. Third-party harassment liability and extended tribunal claim windows take effect from October 2026. Compulsory menopause and gender pay gap action plans, along with extended bereavement leave, are expected in 2027.

Do employers need a menopause action plan under the Employment Rights Act?
Large employers (250+ staff) are currently expected to have a menopause and gender pay gap action plan published or in progress, ahead of this becoming a compulsory requirement in 2027. A basic policy document is unlikely to be sufficient — employers will need evidence that the support in place is actually being used and is having a measurable effect.

What does the Fair Work Agency do?
The Fair Work Agency is a new enforcement body with the power to investigate whether employers are meeting their obligations under the Employment Rights Act, including proactively and without a complaint being filed. This is a shift from the largely complaint-led enforcement UK employers have operated under previously.

How long do employees have to bring an unfair dismissal claim?
From late 2026, employees will be able to bring an unfair dismissal claim after just 6 months of employment, down from the current two-year qualifying period. Combined with an extended claim window and longer Acas conciliation periods from October 2026, this significantly widens the period during which an employer may need to defend a decision.

Peppy provides specialist clinical support across menopause, fertility, pregnancy and parenthood, men's health, women's health and neurodiversity — with anonymised engagement and outcome data attached to every stage, so HR and Benefits teams can evidence the support they provide.