The UK Government has released updated factsheets for the Employment Rights Act 2025, providing further clarity on several key provisions that are expected to reshape employment law practice in Great Britain. The Act received Royal Assent on 18 December 2025 and is now law. The updates address two areas of particular significance for employers and employment law practitioners.

First, the updated guidance confirms a substantial revision to the unfair dismissal qualifying period. The qualifying period — which determines when an employee becomes eligible to bring an unfair dismissal claim — will be reduced from 24 months to 6 months. This is one of the most significant changes in the Act and has been closely watched by both employer groups and worker advocates. In addition, the compensatory award cap for unfair dismissal will be removed, meaning that tribunals will assess compensation solely on the basis of an employee's actual financial loss, without an upper limit.

Second, the factsheets offer further clarification on flexible working rights, building on changes introduced in recent years. Employers will need to ensure that their internal policies and practices are aligned with the updated statutory framework.

Notably, the commencement date for the unfair dismissal reforms has been confirmed as 1 January 2027, giving businesses and legal advisors time to prepare for compliance. Practitioners advising clients on workforce planning, contracts, and dispute management should review the updated guidance carefully and assess any necessary adjustments to existing employment arrangements.

IERPCA will continue to monitor developments under the Employment Rights Act 2025 and provide analysis relevant to cross-border employment professionals.

Resource: Employment Rights Act 2025: factsheets, GOV.UK https://www.gov.uk/government/collections/employment-rights-bill