Labour Lawyers United Kingdom 2026: ERA 2025, Day‑one Rights, Protective Awards & Probation

The Employment Rights Act 2025 (ERA 2025) represents the most significant overhaul of workplace legislation in a generation, and labour lawyers across the United Kingdom are now guiding employers through its first wave of live obligations. From 6 April 2026, employees gained day‑one entitlements to paternity leave, parental leave and bereavement leave, rights that previously required months or years of qualifying service. Alongside those family‑focused changes, the Act has reshaped collective redundancy protective awards and introduced a statutory initial period of employment (the “6‑month probation rule”) that fundamentally alters how dismissals during the early months of a contract must be handled.

This guide delivers a practical compliance playbook for HR directors, in‑house counsel and business owners who must update contracts, handbooks and payroll processes immediately.

What ERA 2025 Changes Now Matter to UK Employers

The Employment Rights Act 2025 received Royal Assent in November 2025 and is being implemented in phases through a series of commencement orders. The first, and most operationally urgent, tranche took effect on 6 April 2026, as confirmed by the government’s employment changes campaign page. Further provisions are expected to be commenced later in 2026 and into 2027, though exact dates for some measures remain subject to secondary legislation. Employers should monitor government announcements and treat every phased commencement as a contractual review trigger.

The Act applies to all employers operating in England, Wales and Scotland, regardless of size, with certain provisions extending to Northern Ireland where employment law is devolved. Its scope covers employees, workers and, for some provisions, agency workers. Industry observers expect the practical burden to fall heaviest on SMEs that have historically relied on standard template contracts and have not updated terms since the earlier Employment Rights Act 1996 framework.

Key Definitions Under ERA 2025

• Employee. An individual working under a contract of employment, the primary beneficiary of day‑one rights and unfair dismissal protections.
• Worker. A broader category that includes employees but also covers individuals providing personal service who are not genuinely self‑employed. Certain ERA 2025 protections (including some sick pay changes) extend to workers.
• Qualifying period. The minimum length of continuous service previously required before an employee could access certain rights. ERA 2025 removes or reduces qualifying periods for several entitlements, creating what are known as day‑one rights.
• Initial period of employment. The new statutory concept replacing informal probation, a period of up to six months during which a lighter‑touch fair dismissal process applies.

6 April 2026, Day‑One Rights Employers Must Implement

The headline change that labour lawyers in the United Kingdom have been preparing clients for since late 2025 is the removal of qualifying‑period barriers to key family and leave rights. According to ACAS guidance on ERA 2025, employees now enjoy these entitlements from day one of employment, meaning from the first day of their contract, with no minimum continuous service requirement.

Day‑One Family Rights Explained

The following rights are now available to every employee from the start of their employment, as confirmed by the business.gov.uk employment changes campaign:

• Paternity leave and paternity pay from day one. Previously, employees needed 26 weeks’ continuous service to qualify for statutory paternity leave and pay. That qualifying period has been abolished. Eligible employees can take up to two weeks’ paternity leave from their first day of employment.
• Parental leave from day one. Unpaid parental leave, up to 18 weeks per child, was previously gated behind one year of qualifying service. It is now a day‑one right.
• Bereavement leave (parental and partner). The right to time off following the death of a child or, under expanded provisions, a close partner, no longer requires any qualifying period.
• Right to request flexible working from day one. While this change was introduced earlier, ERA 2025 reinforces and extends protections, making it unlawful to reject a request without following the statutory procedure from the first day of employment.

For employers, the operational impact is immediate: any contract clause, handbook paragraph or HR system that conditions these entitlements on weeks or months of service is now non‑compliant. Payroll systems must be reconfigured to process paternity pay from day one without an automated qualifying‑period check.

Sample Clauses for Contracts and Handbooks

The following sample wording can serve as a starting point for updating employment contracts and staff handbooks. These are illustrative templates, employers should seek legal sign‑off before adoption.

Paternity leave clause (sample): “You are entitled to up to two weeks’ ordinary paternity leave in connection with the birth or adoption of a child, regardless of your length of service. Statutory paternity pay will be payable in accordance with the rates and conditions set by the government at the time of your leave.”

Parental leave clause (sample): “You are entitled to up to 18 weeks’ unpaid parental leave per child from day one of your employment, subject to reasonable notice requirements and the operational needs of the business as set out in the statutory framework.”

Bereavement leave clause (sample): “In the event of the death of a child under the age of 18, or a stillbirth after 24 weeks of pregnancy, you are entitled to two weeks’ bereavement leave from your first day of employment. Extended bereavement provisions apply as detailed in the company handbook.”

As Bevan Brittan’s employer briefing has noted, one of the most common compliance failures is leaving outdated qualifying‑period language in offer letters and contracts even after handbook policies have been updated. A full document audit is essential.

Collective Redundancy Protective Awards, New Tests and Calculation

ERA 2025 introduces significant changes to the regime governing collective redundancy consultation and the protective awards that employment tribunals can impose when employers fail to comply. For labour lawyers across the United Kingdom, these provisions represent a material uplift in employer exposure and demand a more rigorous approach to the consultation process.

When Protective Awards Apply

Under the Trade Union and Labour Relations (Consolidation) Act 1992, as amended by ERA 2025, an employer proposing to dismiss 20 or more employees at one establishment within a 90‑day period must consult with appropriate representatives. The ERA 2025 amendments expand liability by adjusting how “one establishment” is interpreted, the likely practical effect being that employers with multiple sites may find it harder to argue that redundancies across locations are separate exercises falling below the threshold.

A protective award is the remedy a tribunal grants when an employer fails to comply with the duty to consult collectively. It is not compensation for loss; it is a punitive measure designed to penalise non‑compliance. The award is calculated as a daily rate of pay for each affected employee, up to a statutory maximum period.

Worked Example: Protective Award Calculation

Consider an employer with 35 affected employees earning an average daily rate of £120. The employer fails to begin collective consultation before issuing notices of dismissal. A tribunal finds complete non‑compliance and awards the maximum protective period of 90 days.

• Protective award per employee: £120 × 90 days = £10,800
• Total exposure across all 35 employees: £10,800 × 35 = £378,000

This figure represents pure penalty, it sits on top of any statutory redundancy payments, notice pay and compensatory awards for unfair dismissal. The financial risk makes proper consultation not just a legal obligation but a commercial imperative.

Step‑by‑Step Consultation Timeline

• Step 1, Headcount audit. Count all proposed dismissals across linked establishments. If the aggregated number reaches 20 within any rolling 90‑day period, the collective consultation duty is triggered.
• Step 2, Notify the Secretary of State. File an HR1 form with the Redundancy Payments Service. For 20–99 proposed redundancies, notification must occur at least 30 days before the first dismissal. For 100 or more, the minimum is 45 days.
• Step 3, Elect or identify employee representatives. Where no recognised trade union exists, arrange a fair election of employee representatives before substantive consultation begins.
• Step 4, Consult meaningfully. Provide written details of the reasons, numbers, proposed selection criteria, redundancy calculation method and timescale. Consultation must begin “in good time” and must genuinely seek to avoid or reduce dismissals.
• Step 5, Document everything. Retain minutes of consultation meetings, written responses from representatives, and records of any alternative proposals considered. Thorough documentation is the single most effective defence against a protective award claim.

Probation and the 6‑Month Rule, Risk Assessment and Lawful Clauses

ERA 2025 introduces a statutory “initial period of employment”, commonly referred to as the 6‑month probation rule, that replaces the patchwork of informal probationary periods previously governed solely by contract. Under the new framework, as outlined in ACAS’s ERA 2025 guidance, employers may apply a lighter‑touch fair process when dismissing an employee during the first six months. However, the dismissal must still be for a fair reason, and a basic procedural standard must be met.

This is a critical distinction: the 6‑month probation rules do not create a “fire at will” window. Employers must still demonstrate that the dismissal was based on capability, conduct or another potentially fair reason, and must have given the employee a reasonable opportunity to meet the expected standard. The likely practical effect is that tribunals will expect, at minimum, a documented meeting, an explanation of concerns, and a right to be accompanied, even within the initial period.

Sample probation clause (illustrative, seek legal sign‑off): “Your employment is subject to an initial period of employment of six months. During this period, your performance, conduct and suitability for the role will be assessed against the objectives set out in your onboarding plan. The company will carry out at least one formal review during this period. If, following a fair process including a meeting at which you are entitled to be accompanied, the company determines that your employment should not continue, your contract may be terminated with the statutory minimum notice.”

Can Employees Be Dismissed for Mental Illness Under the New Rules?

ERA 2025 does not override the Equality Act 2010. Mental health conditions that meet the definition of a disability, a physical or mental impairment that has a substantial and long‑term adverse effect on the ability to carry out normal day‑to‑day activities, remain protected. Dismissing an employee because of a mental health condition, including during the initial period of employment, is potentially discriminatory unless the employer can demonstrate that reasonable adjustments were considered and that the decision was based on genuine capability concerns unrelated to the disability itself.

Employers should train line managers on recognising potential disability, documenting adjustments offered and conversations held, and seeking Occupational Health input before making any dismissal decision during the probationary period that involves a health‑related concern.

Statutory Sick Pay and Benefits Changes, Payroll and Absence Policy Checklist

The statutory sick pay changes introduced by ERA 2025 require attention from payroll teams as well as HR. Key amendments, as summarised by ACAS and the government employment changes campaign, include adjustments to the lower earnings limit and changes to the evidence and recording obligations placed on employers.

• Lower earnings limit revision. The threshold at which employees qualify for SSP has been reviewed, broadening the pool of eligible workers. Payroll systems must reflect the updated threshold from 6 April 2026.
• Fit note and evidence handling. Employers must ensure absence management policies align with the updated fit note framework, accepting self‑certification for the first seven days and requiring a fit note from day eight.
• SSP payment timing. Payments must commence from the qualifying day in accordance with the updated schedule. Delays in processing are a common source of employee grievances and tribunal claims.

Recording and Record Retention Obligations

ERA 2025 reinforces the employer’s duty to maintain accurate records of sick pay calculations, fit notes received and any referrals to occupational health. Records must be retained for at least three years from the end of the tax year in which the absence occurred. Failure to maintain records can undermine an employer’s defence in a tribunal claim and may attract separate regulatory attention.

Employers should review their HR information systems (HRIS) to confirm that absence records, SSP calculations and fit notes are stored in a compliant, auditable format. Where manual spreadsheets are still used, this is an appropriate trigger to transition to an automated system.

Practical Employer Contract and Policy Update Checklist

The following checklist is designed for HR directors and in‑house counsel coordinating the ERA 2025 compliance project. It should be treated as a sample framework, employers should seek legal sign‑off tailored to their specific contracts and workforce structure.

• Employment contracts. Remove all qualifying‑period conditions for paternity leave, parental leave, bereavement leave and flexible working requests. Insert the statutory initial period of employment clause.
• Employee handbook / policies. Update family leave sections, probation policy, SSP and absence management policy, redundancy procedure and grievance procedure.
• Offer letters. Ensure offer letter templates reflect day‑one rights language and do not reference superseded qualifying periods.
• Payroll systems. Reconfigure qualifying‑period checks for paternity pay, parental leave triggers and SSP lower earnings limit thresholds.
• Redundancy procedure. Audit establishment definitions, update HR1 notification process, and prepare template consultation documents reflecting the broader “one establishment” test.
• Manager training. Brief all line managers on the new probation framework, day‑one rights and the obligation to consider reasonable adjustments before any dismissal decision.
• Record‑keeping systems. Confirm that HRIS can capture and retain absence, SSP and consultation records for the required retention period.

If your organisation employs more than 50 people: consider appointing an internal ERA 2025 project lead, establishing a cross‑functional working group (HR, legal, payroll, line management) and commissioning an external legal audit of all template documents. If you employ fewer than 50 people: prioritise the contract and handbook updates, payroll reconfiguration and a one‑hour manager briefing session. Even smaller employers face the same legal obligations; the difference is in the scale of the project management effort required.

Litigation Risk, Remedies and Mitigation for Labour Lawyers in the United Kingdom

Non‑compliance with ERA 2025 exposes employers to a range of tribunal remedies that extend well beyond basic compensation for unfair dismissal. Understanding the remedy landscape is essential for risk‑aware decision‑making.

• Protective awards. As detailed above, up to 90 days’ pay per affected employee for failure to consult collectively on redundancies.
• Compensatory awards for unfair dismissal. The compensatory award cap is reviewed annually and, when combined with a basic award and any uplift for failure to follow the ACAS Code of Practice, can result in a significant liability.
• Discrimination awards. Where a dismissal, including during the initial period of employment, is found to be discriminatory (for example, related to mental health), compensation is uncapped and may include an award for injury to feelings.
• Aggravated damages and uplift. Tribunals can increase awards by up to 25% where an employer has unreasonably failed to follow the ACAS Code of Practice on disciplinary and grievance procedures.

Mitigation strategies centre on documentation, process and early legal input. Employers should document every stage of a redundancy consultation, probation review or disciplinary process. Where any doubt arises about the fairness of a proposed dismissal, particularly during the initial period of employment or where a health condition may be a factor, obtaining external legal advice before proceeding is the most cost‑effective risk management step available.

Action Plan and Timeline for Employers (30/60/90 Day Plan)

The following timeline provides a structured approach for employers that have not yet completed their ERA 2025 compliance work. Even for those that have taken initial steps, this plan serves as a useful audit framework.

Conclusion

The Employment Rights Act 2025 has created a new compliance baseline for every employer in the United Kingdom. With day‑one rights already live since 6 April 2026 and further provisions on the horizon, the cost of inaction, measured in protective awards, discrimination claims and reputational damage, is significant and growing. Employers who have not yet completed their contract, policy and payroll updates should treat this as an urgent priority. For organisations navigating complex workforce structures, engaging experienced labour lawyers in the United Kingdom is the most effective route to ensuring full compliance and minimising litigation risk.

Sources

1. Employment Rights Act 2025, legislation.gov.uk
2. gov.uk, Employment Changes Campaign (business.gov.uk)
3. ACAS, ERA 2025 Guidance
4. Bevan Brittan, ERA 2025 Employer Note
5. CIPD, HR Perspective on Day‑One Rights
6. BrightHR, Day One Rights Practical Checklist
7. EmploymentHero, ERA 2025 Employer Compliance Guide
8. BRC, Six Key Steps to Prepare for ERA 2025