On 18 December 2025, the Employment Rights Bill received Royal Assent, becoming the Employment Rights Act (ERA) 2025.
This new law introduces far-reaching reforms to worker protections, trade union rights, and employer responsibilities, representing one of the most significant updates to employment law in a generation.
With implementation scheduled in phases across 2026 and 2027, companies of all sizes now have a time frame to understand the changes, assess their impact, and prepare for compliance.
B P Collins’ employment team has developed Compliance Solutions, which are designed to help employers navigate the significant changes introduced by the (ERA 2025). They include:
Unfair dismissal risk mitigation
From January 2027, the qualifying period for unfair dismissal will be reduced from two years to just six months, making the early stages of employment a legally sensitive period. Without clear expectations or consistent processes during probation, employers face an increased risk of costly claims.
To navigate this change, companies will need to review their recruitment processes, from job design and selection to onboarding, ensuring they hire the right person for the role and set them up for success from day one.
Our solution: Transparent probation periods
As part of the onboarding process, we recommend implementing transparent probation period procedures. B P Collins, together with our HR consultancy team HR2HELP, has developed practical guides to support fair and consistent management of probation periods. These include clear expectations, measurable performance standards and structured procedures for addressing issues both during and after probation.
By establishing consistent processes and performance frameworks, employers can manage early-stage performance fairly and confidently while ensuring compliance with the new legal requirements.
We also help organisations introduce meaningful safeguards during probation, including regular feedback mechanisms, structured performance evaluations, and support systems to provide stability for employees while assessing their suitability for the role.
With these tools, employers can reduce the risk of unfair dismissal claims, enhance transparency, and build a strong foundation for long-term workforce success.
“Fire and re-hire” practices
With the tightening of the rules on “fire and rehire”, which will be prohibited in almost all circumstances, employers who have previously used this approach as a last resort are likely to lose leverage to encourage employees to accept changes to their terms and conditions.
This shift means that greater attention will need to be given to contractual terms relating to promotions, pay increases and other key employment provisions. Opportunities to introduce new contractual changes by consent will be more limited, making careful planning and review essential.
Additional obligations
Employers will also face new obligations requiring contracts to make employees expressly aware of their right to join a trade union. Clear communication of these rights will be crucial to ensure compliance with the Employment Rights Act 2025.
Our recommendation: Immediate contract review and futureproofing
With a narrow window before the full implementation of the Employment Rights Act 2025, employers should review existing contractual terms immediately and “future-proof” policies to meet the new legal standards. Proactive planning will help organisations maintain compliance, mitigate risk and ensure fair, transparent treatment of employees while adapting to the evolving employment law landscape.
Implementation timeline compliance
The phased implementation of the ERA 2025 requires employers to stay informed about the commencement of specific obligations. We offer ongoing support to ensure timely compliance, including updates to policies and procedures as new legal standards come into effect.
Why choose us?
- Expertise in employment law
Our team of legal professionals specialises in employment law and has in-depth knowledge of the provisions of the ERA 2025.
- Tailored solutions
We deliver customised solutions designed to meet the unique needs of your business and workforce.
- Proactive compliance
Stay ahead of legal changes with our proactive approach to compliance, risk management, and workforce planning.
Get in touch
Ensure your organisation is fully prepared for the ERA 2025. Contact us today at enquiries@bpcollins.co.uk or call 01753 889995 to discuss how we can help you navigate these changes with confidence.
