The Employment Rights Act 2025 is the most significant package of employment law reform in a generation. In this lecture, presented by Martin Mensah of Nine Chambers, you will get a clear, practical overview of the forthcoming changes, why they matter, and how employers and their advisers can prepare rather than simply react.
The session sets the changes in context, from the pressure on the employment tribunal system to the government's aims, and works through the headline reforms. These include the shorter unfair dismissal qualifying period, the longer tribunal time limit, the removal of the compensation cap, the new Fair Work Agency, and the restrictions on non-disclosure agreements in discrimination and harassment cases.
Throughout, Martin Mensah weighs the risks and the opportunities, using practical examples and case law on the “all reasonable steps” defence to harassment claims. The webinar closes on the shift towards guaranteed hours and what employers should be doing now ahead of full implementation expected in 2027.
Key Takeaways
- The Employment Rights Act 2025 amends the Employment Rights Act 1996 and other statutes including the Equality Act 2010, with implementation phased across 2025 to 2027.
- The unfair dismissal qualifying period is reduced and the tribunal time limit for bringing claims is extended, both of which are likely to increase the number of claims.
- Removing the cap on certain compensation changes the economics of settlement and may lead to more and longer tribunal hearings against an already stretched system.
- The new Fair Work Agency can pursue claims on behalf of individuals, raising practical questions about evidence, funding and the role of advisers and trade unions.
- Non-disclosure agreements that silence workers in discrimination or harassment cases will be void, subject to limited exceptions under the new Section 202A.
- Employers should strengthen their anti-harassment measures now, as the “all reasonable steps” defence depends on training, clear values and records, and should plan for guaranteed hours obligations.