United KingdomEmployment & LaborEffective: January 1, 2027
UK Employment Law: What the Employment Rights Act 2025 Changes
The Employment Rights Act 2025 makes several major changes to UK dismissal law. Some provisions are already in force; the largest ones -- the shorter unfair-dismissal qualifying period and the fire-and-rehire restriction -- are set to take effect on 1 January 2027.
What Changed
BeforeAn employee generally needed 2 years’ continuous service before they could bring an unfair dismissal claim.
AfterProtection from unfair dismissal becomes a "day one" style right after only 6 months’ service.Takes effect 1 January 2027.
BeforeDismissing an employee and rehiring them on worse terms ("fire and rehire") was generally lawful if the employer followed a fair process and had a genuine business reason.
AfterFire and rehire becomes automatically unfair dismissal in most cases.Takes effect 1 January 2027.
BeforeDismissal for taking part in industrial action was only protected from an unfair dismissal claim within a 12-week limit.
AfterDismissal for taking part in industrial action is automatically unfair, with no 12-week limit.Already in force from 18 February 2026.
Who Is Affected
Employers and employees in England, Wales, and Scotland. The shortened qualifying period and fire-and-rehire restriction affect how employers can lawfully dismiss or renegotiate terms with newer employees; the industrial-action change affects employees who take part in official industrial action.