rewrite this title UK Employment Rights Act: How HR Leaders Must Adapt Their Tech and Processes

The Employment Rights Act 2025 received final approval in December, and it marks what many are calling the most significant overhaul of UK workplace legislation in a generation.

For workers, no action is required, as these new laws automatically extend many employment rights to them from day one of employment. The same cannot be said for those responsible for hiring them.

“The clock has started ticking for HR professionals who are getting ready to implement the most significant employment law changes in decades,” says Stephen Simpson, Principal HR Strategy and Practice Editor at Brightmine.

With phased implementation beginning in April 2026 and extending through 2027, HR leaders now face a compressed timeline to fundamentally reshape how their organizations manage employees from day one. These reforms will affect about 18 million workers across the UK, touching every sector and organization size.

Unlike previous legislative updates, this Act eliminates the traditional buffer periods that historically gave employers breathing room during onboarding. The introduction of day one rights covering sick pay, parental leave, and predictable hours means organizations must have compliant systems operational the moment a new employee walks through the door.

The challenge will require many companies that have relied on less formalized systems to consider tech investment to manage these changes. “Implementing these changes manually simply won’t be sustainable,” says Alan Price, CEO of BrightHR.

Despite having until April 2026 before multiple provisions kick in, many organizations remain underprepared. Research from Brightmine indicates that nearly 25 percent of businesses have yet to develop a clear implementation plan, even as the deadline approaches.

For HR leaders, the new Act may feel like an added burden, but those who view it as an opportunity to modernize and strengthen their HR processes will ultimately be better positioned to meet the new requirements and elevate their overall human capital management.

Understanding the Scope of Change

The Employment Rights Act 2025 introduces fundamental shifts across multiple dimensions of workforce management, each carrying significant operational and compliance implications.

At the core of these changes is the expansion of day one rights, which removes the qualifying periods previously required for statutory sick pay, paternity leave, and ordinary parental leave. This means organizations must immediately recognize and process these entitlements from the first day of employment, fundamentally altering how HR systems track eligibility and manage requests.

The removal of the three-day waiting period for statutory sick pay alone represents a major administrative shift, particularly for organizations managing large volumes of short-term absences.

Zero-hours and irregular-hours workers will gain the right to request regular-hours contracts, with employers required to provide reasonable notice of shifts and compensation for canceled shifts. These provisions address precarious working arrangements but require sophisticated scheduling systems and clear processes for assessing and responding to requests.

Simultaneously, the qualifying period for unfair dismissal protection is being reduced from two years to six months, significantly expanding the group of employees who can bring claims. Employment tribunal time limits are expected to extend from three to six months, giving workers more time to lodge complaints and requiring organizations to maintain comprehensive records for longer periods.

The legislation also introduces progressive measures around workplace equality and family-friendly policies. Employers will need to implement stronger protections against third-party harassment, restrict non-disclosure agreements in specific circumstances, and provide bereavement leave. Larger organizations will face compulsory gender pay gap reporting and action plans, alongside menopause action plans. Flexible working requests will be assessed against a new reasonableness requirement, and dismissal protections during pregnancy and family leave are being enhanced.

Collectively, these changes require HR leaders to audit existing policies, redesign workflows, update technology systems, and retrain managers on a scale that goes far beyond routine compliance updates.

Navigating the Implementation Timeline

The phased rollout of the Employment Rights Act 2025 creates distinct pressure points for HR leaders, with April 2026 representing the first major wave of changes.

With so many changes arriving at different times, HR professionals need to establish a tech-led process that enables timely implementation. “Technology will be critical in automating compliance-heavy tasks such as onboarding, eligibility tracking, and workforce reporting, while giving leaders real-time visibility across their workforce,” says Novo Constare, VP and General Manager of Staffing Solutions at Indeed.

This initial phase introduces several of the most operationally demanding provisions: paternity and unpaid parental leave become day one rights, the waiting period for statutory sick pay is removed, and fair work enforcement powers are activated.

Organizations must ensure their HRIS and payroll systems can accurately calculate and process these entitlements from an employee’s start date, requiring configuration changes, testing, and validation well in advance of the April deadline.

These April reforms mark a fundamental shift in how employers manage workforce processes. HR teams must ensure their systems “are ready to recognize and process entitlements from the moment employment begins,” says Simpson. This requires more than system updates. Onboarding workflows need complete redesign, absence management frameworks must handle increased volumes of short-term sickness claims, and payroll teams need clear protocols for processing new entitlements without delay.

With probation periods becoming more formalized and workers gaining immediate rights to sick pay and predictable hours, pre-employment checks, contracts, and onboarding processes must be “consistent and compliant right from the start,” stresses Tracey Beveridge, HR Director at Personnel Checks.

Technology solutions that reduce manual administration and create clear audit trails will ensure that “hiring decisions are easier to evidence, onboarding runs more smoothly, and compliance is embedded into the process from the moment someone is hired.”

October 2026 brings the second wave of reforms, including the extension of employment tribunal time limits to six months, and new protections around third-party harassment and confidentiality agreements. This extended timeline and third-party responsibility will make extended record keeping essential, with Karen Clapp, HR Business Partner EMEA at WireMasters, stating “that means checking whether existing HR systems really support clear records and consistent decisions as part of normal day-to-day activity.”

The record keeping foundation will become even more crucial as the timeline extends into 2027, with significant changes to trade union and collective rights and the rollout of compulsory gender pay gap and menopause action plans for qualifying employers.

Successful implementation of all these factors requires a comprehensive approach to workforce visibility.

Beyond systems, employees across the business will need transparency, with leaders requiring clear guidance on how changes affect daily decision-making. Misunderstanding the regulations could directly impact staffing and budgets. Without that visibility, companies risk misjudging people’s availability to work under the new employment rules and engaging in last-minute cancellations of contract shifts, which result in payments that didn’t previously apply.

Building Resilience Through Strategic Preparation

The Employment Rights Act 2025 represents more than a legislative burden. For forward-thinking HR leaders, it offers a compelling catalyst to modernize their systems, eliminate inefficiencies, and build organizations genuinely prepared for the future of work.

The scale of change required means piecemeal adjustments will fail. Day one rights remove the traditional buffer period, meaning HR teams must have accurate data, compliant workflows, and clear communication channels in place the moment someone joins the organization.

Between now and April 2026, businesses need to audit their current HR technology, update policies, redesign onboarding practices, and train managers on the new rules around sickness, absence, shift cancellations, and leave.

Technology will become the backbone of compliance, with automation, integrated HR platforms, and smarter absence management tools helping organizations apply new rights consistently and accurately while reducing administrative pressure.

The immediate priority is action. “As the Employment Rights Bill comes into effect, HR leaders must move quickly from interpreting policy to ensuring operational readiness. Manual processes and fragmented systems will quickly become a risk under tighter regulation,” Constare explains. He notes, “Those that adapt best will be organizations investing in the right tools and partners to simplify compliance without losing flexibility.”

HR leaders should conduct comprehensive audits of current technology capabilities, identifying gaps in data capture, process automation, and reporting functionality. Policies need reviewing and updating to reflect new legal obligations, while onboarding practices require redesign to ensure compliance from an employee’s first day. Manager training is essential, particularly around rights related to sickness, absence, flexible working, and family leave.

While detailed guidance is still emerging, organizations that act now by reviewing policies, testing systems, and mapping operational impacts “will not only mitigate risk but also strengthen trust and engagement across their workforce as the new rules come into effect,” says Simpson.

With implementation spanning into 2027, HR leaders have a narrow window to act decisively. Start with a technology audit and cross-functional roadmap today to transform compliance into a strategic advantage.