Managing UK Employees from Ireland: Understanding the Employment Rights Act 2025
The UK Employment Rights Act 2025 represents one of the most significant developments in UK employment law in recent years. The legislation introduces wide-ranging reforms designed to strengthen workers’ rights, improve workplace protections, and create greater certainty for employees.
While some reforms will take effect immediately and others will be introduced gradually through further regulations and government guidance, now is the right time for employers to review their HR processes, policies, and employment documentation.
Legal disclaimer:
This article provides general information about the UK Employment Rights Act 2025 and is intended for guidance purposes only. It does not constitute legal advice and should not be relied upon as a substitute for advice tailored to your business circumstances. Many provisions of the Act will be introduced through secondary legislation and phased implementation, meaning details, dates, and requirements may change. Employers should seek appropriate HR or legal advice before making decisions affecting employees.
Unfair Dismissal
Removal of the Two-Year Qualifying Period
One of the most significant reforms introduced by the Employment Rights Act 2025 is the change to unfair dismissal protection.
Currently, employees generally require two years’ continuous service before they can bring an ordinary unfair dismissal claim. The Act removes this long qualifying period, meaning employees will gain protection much earlier in their employment.
The government has indicated that a shorter qualifying period will apply, with further detail to be confirmed through regulations.
What this means for you ?
Previously, some employers viewed the first two years of employment as a period where dismissal decisions carried less legal risk. This approach will no longer be appropriate.
Small businesses will need to ensure that employment decisions are:
Based on a fair and legitimate reason
Supported by evidence
Managed through a reasonable process
Properly documented
Employers should review:
Probation processes
Performance management procedures
Disciplinary procedures
Termination processes
Manager training
Good HR practice will become increasingly important from the very beginning of employment.
Statutory Sick Pay
Day-One Sick Pay and Expanded Eligibility
The Employment Rights Act 2025 introduces significant reforms to Statutory Sick Pay (SSP), increasing access to financial support for employees who are unable to work due to illness.
Previously, employees generally had to wait until the fourth qualifying day of sickness before SSP became payable. In addition, employees had to meet the Lower Earnings Limit to qualify.The reforms remove these barriers.
The key changes include:
SSP will become payable from the first day of sickness absence.
The Lower Earnings Limit requirement will be removed, allowing more low-paid and part-time workers to qualify.
SSP payments for lower earners will be calculated using a reduced rate, ensuring access while recognising the financial impact on employers.
What does this mean for you ?
These changes may increase sickness absence costs, particularly for businesses employing:
Part-time workers
Seasonal employees
Lower-paid employees
Casual workers
Employers should:
Review sickness absence policies.
Update payroll systems.
Check employment contracts and staff handbooks.
Train managers on absence reporting procedures.
Ensure sickness is managed consistently and fairly.
A clear absence management process will help businesses balance employee wellbeing with operational needs.
Zero-Hours Contracts
Greater Protection for Workers on Irregular Hours
The Employment Rights Act 2025 introduces new protections for workers engaged on zero-hours contracts and other arrangements where working patterns are unpredictable.
Eligible workers will have the right to request a more predictable working pattern, helping employees gain greater certainty over their hours and income.
Employers will need to properly consider these requests and follow the required process when responding.
What this means for employers
Many small businesses rely on flexible staffing arrangements, particularly in sectors such as hospitality, retail, healthcare, and seasonal businesses.
Employers should review:
Whether zero-hours arrangements are appropriate.
Whether contracts reflect actual working practices.
How predictable working pattern requests will be handled.
Whether managers understand their responsibilities.
Flexibility remains possible, but businesses will need to ensure arrangements are fair and transparent.
Fire and Rehire
Tighter Controls on Changing Employment Terms
The Act introduces stronger protections around the practice known as “fire and rehire”, where an employer dismisses an employee and offers continued employment on different contractual terms.
While businesses may sometimes need to make changes due to financial pressures or operational requirements, employers will face greater scrutiny when attempting to impose changes without agreement.
Employers will need to demonstrate:
A genuine business reason for the proposed change.
That alternatives have been considered.
That meaningful consultation has taken place.
That employees have been given an opportunity to respond.
What does this mean for you ?
Businesses considering changes to:
Pay
Benefits
Working hours
Workplace location
Employment terms
Family-Friendly Rights
Increased Access to Family-Related Protections
The Employment Rights Act 2025 strengthens family-friendly workplace rights by expanding access to certain protections from an earlier stage of employment.
The reforms affect areas including:
Parental leave
Paternity rights
Flexible working arrangements
Protection from unfair treatment because of family-related responsibilities
Some rights that previously depended on length of service will become available sooner.
What does this mean for you ?
Employers should ensure they have:
Updated family leave policies.
Clear processes for handling requests.
Trained managers.
Consistent decision-making practices.
Managers should understand that informal comments or assumptions about employees’ family responsibilities can create discrimination risks.
Bereavement Leave
A New Statutory Right for Employees
The Act introduces a statutory right to bereavement leave, providing employees with protected time away from work following the death of a loved one.
Previously, bereavement arrangements were largely determined by employer policies, contracts, or compassionate leave practices.
What this means for employers
Introduce or update bereavement policies.
Clearly define eligibility and notification processes.
Train managers to handle sensitive situations appropriately.
A compassionate and consistent approach helps support employees while providing clarity for managers.
Protection from Redundancy
Stronger Protection for Pregnant Employees and New Parents
The Act strengthens protections for employees who are pregnant or returning from family-related leave.
Employers must take particular care when making redundancy decisions involving these employees.
What this means for businesses
Employers should ensure:
Selection criteria are objective.
Decisions are properly documented.
Employees are not disadvantaged because of pregnancy or family leave.
Managers understand discrimination risks.
Flexible Working
Greater Workplace Flexibility
The Act continues the move towards greater flexibility in working arrangements, strengthening employees’ ability to request flexible working.
Flexible working requests may relate to:
Working hours
Working days
Location of work
Hybrid working arrangements
What this means for small businesses
Employers should have clear processes for managing requests and ensure decisions are based on business considerations rather than assumptions.
Good flexible working practices can help businesses:
Attract talent
Retain employees
Improve engagement
Support work-life balance
Trade Union Rights
Strengthened Worker Representation
The Employment Rights Act 2025 introduces reforms aimed at strengthening trade union rights and improving worker access to representation. Changes include greater protections for employees involved in trade union activities and additional employer responsibilities.
What this means for employers
Businesses should understand:
Employees’ rights to union membership.
The importance of avoiding detriment due to union involvement.
Appropriate responses to workplace representation issues.
Collective Redundancies
Changes to Consultation Requirements
The Act introduces changes affecting collective redundancy processes, including circumstances where employers are restructuring or making larger-scale workforce changes.
Employers will need to ensure consultation processes are meaningful and properly managed.
What this means for small businesses
Even smaller employers considering restructuring should ensure:
Consultation is genuine.
Employees are given opportunities to provide feedback.
Decisions are properly recorded.
Employment Tribunal Time Limits
More Time for Employees to Bring Claims
The Act extends the time frame employees have to bring certain employment tribunal claims. For employers, this increases the importance of maintaining accurate and complete HR records.
Businesses should retain records relating to:
Contracts
Performance discussions
Disciplinary procedures
Grievances
Employee consultations
Strong documentation is one of the most effective ways to manage employment risk.
Fair Work Agency and Enforcement
Stronger Enforcement of Employment Rights
The Act introduces measures to strengthen enforcement of employment rights and improve compliance. For employers, this means workplace practices will face greater scrutiny.
Businesses should ensure their HR processes are:
Consistent
Fair
Transparent
Properly documented
Umbrella Companies and Worker Protection
Increased Regulation and Transparency
The reforms also introduce greater oversight of umbrella companies and arrangements involving agency workers. The aim is to improve transparency and ensure workers receive the pay and protections they are entitled to.
What this means for employers
Businesses using agency workers should review:
Supplier relationships
Worker payment arrangements
Compliance responsibilities
What Businesses Should Do Now
Preparing for employment law reform does not need to be overwhelming.
Small businesses should start by:
Reviewing employment contracts.
Updating HR policies and handbooks.
Reviewing sickness absence procedures.
Auditing zero-hours and casual worker arrangements.
Training managers.
Improving HR record keeping.
Seeking advice before changing employee terms and conditions.
Taking action early will help businesses adapt smoothly and avoid unnecessary disputes.
How HR Support Can Help
For many businesses, keeping up with employment law changes while managing day-to-day operations can be challenging.
An experienced HR consultancy can provide practical support with:
Employment contract reviews
Policy updates
Employee relations matters
Performance management
Absence management
Restructuring support
Manager training
HR compliance reviews
Good HR is not only about avoiding legal problems. It helps businesses create clear expectations, support employees, and build a stronger workplace.
Final Thoughts
The Employment Rights Act 2025 represents a major change in the relationship between employers and employees.
For businesses managing UK Employees from Ireland: preparation is key. Reviewing HR practices now, improving documentation, and ensuring managers understand their responsibilities will help businesses remain compliant and confident as the reforms take effect.
Need help preparing your business for the Employment Rights Act 2025?
Our HR consultants can help you review your contracts, update policies, train managers, and ensure your business is ready for the employment law changes ahead.
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