Employment Rights Act 2025 Explained for Growing Businesses

For HR teams - particularly in growing businesses - now is the time to prepare.

What’s changing?

The Act introduces some of the most significant updates to UK employment law in decades, including:

• Statutory Sick Pay from day one of employment
• Day-one paternity leave rights
• A new statutory bereavement leave entitlement
• Stronger protections against harassment and whistleblowing
• A reduction in the unfair dismissal qualifying period from two years to six months
• Measures to ban exploitative zero-hours contracts and give workers greater predictability around hours

Together, these changes raise the bar for how consistently and transparently HR processes must be applied - from recruitment through to exit.

When do the changes take effect?

Although the Act is now law, not all provisions apply immediately. The government has confirmed that:

• Some changes may take effect in late 2025, once regulations are finalised
• Most new rights will be implemented during 2026, through secondary legislation
• Further guidance and consultation is expected, particularly around:
  • Guaranteed hours
  • Contract changes
  • Tribunal processes and enforcement

This phased approach gives employers time to adapt - but also means HR teams need to stay organised, informed, and ready.

What this means for HR in practice

With employee rights applying earlier and more broadly, HR teams will need:

• Stronger recruitment and onboarding records
• Clear, well-managed probation and performance processes
• Accurate attendance, absence and leave tracking
• Compliant contracts and policy documentation
• Payroll systems that correctly reflect new entitlements

For growing businesses, managing this manually increases risk - especially as timelines shorten and expectations rise.

How HR software can support compliance and growth

This is where the right HR software makes a real difference.

Harp Software helps growing businesses stay compliant and confident by bringing together:

• Core HR management
• Attendance and absence tracking
• End-to-end recruitment
• Fully integrated payroll

All in one system - designed to reduce admin, improve accuracy, and support your business as employment law evolves.

Prepare now, not later

With the Employment Rights Act 2025 now law and changes rolling out over the next year, now is the ideal time to review how well your HR processes will stand up to increased scrutiny.

Visit harpsoftware.co.uk to learn how Harp can support your HR, attendance, recruitment and payroll — and help your business grow with confidence.