The Employment Rights Bill has now become the Employment Rights Act 2025 after receiving Royal Assent, and is set to introduce the most significant changes to employment law in decades. For care providers, these changes will impact recruitment, contracts, and day-to-day HR processes. Here’s what you need to know.

Key Changes Coming

• Six-month qualifying period for unfair dismissal rights: Employees will gain unfair dismissal protection after six months, replacing the current two-year qualifying period.
• Statutory Sick Pay: SSP will be payable from day one, with the lower earnings limit removed.
• Parental Leave: Day-one rights for paternity and unpaid parental leave.
• Fair Pay Agreements: A new negotiating body for adult social care will set minimum pay and conditions.
• Ban on Fire-and-Rehire: Employers will face strict limits on changing contractual terms.

Timeline

• April 2026: SSP changes, parental leave, enhanced whistleblowing protections.
• October 2026: Ban on fire-and-rehire, fair pay agreements introduced.
• 2027: Six-month qualifying period for unfair dismissal rights and extended tribunal time limits.

Practical Steps for Providers

• Review recruitment processes – avoid “bums on seats” hiring.
• Update contracts and policies to reflect new statutory rights.
• Train managers on procedural compliance – errors will be costly.
• Budget for increased employment costs and potential tribunal risks.

Next Steps

If you need support preparing for these changes, contact our Employment & HR team today.