United Kingdom: Employment Rights Act 2025 – Summary and Next Steps

In brief

The Employment Rights Bill was approved and finalised on 18 December 2025, after many rounds of parliamentary “ping pong”, becoming the Employment Rights Act (ERA) 2025. Its final form is substantively very similar to previous versions, with one important exception: the retention of a qualifying period for unfair dismissal rights (albeit reduced from two years to six months) and the removal of any cap on unfair dismissal compensation.

Although we now have a finalised ERA 2025, many key areas of detail are subject to consultations and further regulations. This article summarises the Act’s key provisions, the areas of outstanding detail, anticipated timelines, and what organisations could or should be doing now to prepare.

Download the full version of United Kingdom: Employment Rights Act 2025 – Summary and Next Steps.