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ARTICLE · 06 MARCH 2026

Employment Essentials: Employment Law Changes 2026 And Beyond

Gowling WLG
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Following a long and bumpy journey through Parliament, the Employment Rights Act 2025 received Royal Assent on 18 December 2025...

United KingdomEmployment and HR

Labour's New Deal for Working People

The Employment Rights Act 2025

Following a long and bumpy journey through Parliament, the Employment Rights Act 2025 received Royal Assent on 18 December 2025, with some last-minute compromises most notably replacing the provisions which would have made unfair dismissal protection a day-one right, with a six-month qualifying period, but also a surprise removal of the statutory cap on unfair dismissal awards.

The Employment Rights Act 2025 is a key pillar of the Government's Plan to Make Work Pay. The scope and significance of the 350-page Act should not be underestimated.

Implementation

Some provisions come into force shortly, notably many of the trade union/industrial action provisions and the doubling of the protective award for failure to collectively consult. However, for many of the Act's provisions, the journey into becoming the law is still underway. Essential detail for many of the provisions is subject to further consultation with

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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