Employment Rights Act 2025: What are the big impacts for universities?

Key developments 

After multiple rounds of debate and amendment between the House of Commons and the House of Lords, the final stages of the Bill’s parliamentary passage focused on proposals relating to unfair dismissal. These included changes to the compensation framework and the qualifying period for bringing an unfair dismissal claim.

Under the Act there will be a raft of changes, many of which will be significant for universities in managing the workforce. These include a 6-month qualifying period for claims of unfair dismissal, significant changes to Trade Union laws, restrictions on fire and rehire practices, new rights for zero hours and low hours workers, extension of whistleblowing protection and changes to collective redundancy consultation.

Implementation still to follow

While the Act has now received Royal Assent, many of its practical effects will depend on further regulations and guidance.

The government has indicated that a significant number of consultations will take place. It is expected that there will be consultations in relation to unfair dismissal rights, changes to trade union laws, fire and rehire and rights for pregnant workers. The outcome of those consultations will inform the detailed implementation of the new framework, with engagement expected from both businesses and trade unions.

Areas where further detail is awaited include new protections for zero-hours workers, particularly around requirements to offer guaranteed hours reflecting established working patterns. Key concepts, such as how working patterns are assessed and how the rules will apply in sectors with variable demand, will be addressed through secondary legislation.

Preparing for change

For universities, the Act signals a period of change that will unfold over time. Some measures take effect immediately, including the repeal of minimum service levels for industrial action, while many others will be introduced in stages and will require commencement regulations before they apply.

Universities will need to monitor developments closely as consultations progress, review existing policies in light of confirmed changes, and plan for the introduction of new requirements as further detail emerges.

We will continue to provide updates on the Act's implementation. For detailed insights into what employers can expect and how to prepare, visit our Employment Rights Act Hub.

For more information or advice, please contact Katie Hurst in our Employment team.