The Employment Rights Act 2025 (the Act) represents one of the most significant packages of employment law reform in recent years. The Act introduces a range of measures which will come into force over the next year and beyond, designed to provide greater security and flexibility for working parents.
What's changing with flexible working?
The right to request flexible working already became a “day one” right in April 2024. However, from 2027, the Act will strengthen flexible working rights by requiring employers to act reasonably when refusing requests. While the eight statutory grounds for refusal remain unchanged, employers will need to explain why their refusal is reasonable, not simply cite one of the prescribed reasons. For working parents juggling childcare, this change should make it easier to challenge refusals that lack proper justification.
Will paternity leave and parental leave become day one rights?
Yes, and this is one of the earliest changes to come into force under the Act. From 6 April 2026, both paternity leave and unpaid parental leave will become day one rights, removing the current requirements for employees to have 26 weeks' service to be eligible for paternity leave and one year's service to be eligible for parental leave. This addresses a gap where parents who changed jobs or returned from career breaks could lose access to leave entitlements. The restriction on taking paternity leave after shared parental leave will also be removed, giving parents more flexibility as to how leave is shared in the year following birth or adoption. It's important to note however that the 26-week qualifying period for statutory paternity pay remains unchanged.
The government estimates that around 30,000 additional fathers and partners will become eligible for paternity leave each year, and approximately 1.5 million parents will benefit from the day one right to unpaid parental leave.
Are any changes being made to current bereavement leave entitlements?
At the moment, bereavement leave is only a statutory right for parents who lose a child. A consultation on a statutory bereavement leave regime, including pregnancy loss, closed on 15 January 2026. There are now proposals to make bereavement leave a day one right and to introduce a protected bereavement leave for those who experience pregnancy loss – including miscarriage and ectopic pregnancy—before 24 weeks, acknowledging that grief can be just as profound regardless of when the loss occurs. Currently leave is only available in relation to pregnancy loss from 24 weeks. These changes are not expected to come into force until 2027.
How will pregnant employees and new mothers be better protected against dismissal?
The Act will strengthen protections against dismissal for pregnant employees and those on or returning from family leave. These changes will be welcome for working parents – losing your job after returning from a period of leave (usually on reduced pay) can often cause financial hardship. This proposal represents a significant change to the law. With the exception of some redundancy situations, there is currently no prohibition on dismissing employees on family leave or recent leave returners, provided that the termination is not related to the leave and is otherwise fair.
What's changing with gender pay gap reporting and equality action plans?
Employers with 250 or more employees will be required to publish equality action plans explaining the steps they are taking to address their gender pay gap and support workers through the menopause. These action plans will be voluntary from 6 April 2026, and mandatory from 2027. While some employers already voluntarily publish their plans, the mandatory requirement is expected to drive greater accountability and hopefully, in time, effect real change in workforce diversity.
How might other improvements to employee protections benefit working families?
Several other changes may benefit working parents.
- The unfair dismissal qualifying period will be reduced from two years to six months from 1 January 2027, providing greater job security, particularly for those who change jobs for family reasons.
- New restrictions on the practice of “fire and rehire” from January 2027 are intended to help protect employees resisting detrimental changes to employment terms, including, for example working patterns.
- Reforms to zero-hours contracts will also give workers the right to guaranteed hours and reasonable notice of shifts.
If you have any questions about the changes discussed above or how they may impact you in practice, please get in touch.
