The Government has published a revised timetable for implementing the Employment Rights Act 2025, pushing back key measures, including the ban on fire and rehire, to January 2027.
Originally scheduled for October 2026, the delay gives employers additional time to prepare for one of the most significant changes in decades. Under the new rules, making a “restricted variation” to an employee’s contract, such as reducing pay or pension benefits, without agreement and then dismissing them will automatically be classed as unfair dismissal.
This means that the practice of dismissing staff to rehire them on less favourable terms will no longer be lawful where it is used to impose detrimental changes.
What employers need to know
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Fire and rehire protections will come into effect from January 2027.
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Unfair dismissal changes include reducing the qualifying period from two years to six months and removing the cap on compensatory awards.
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Other major changes are already underway or will take effect between now and 2027, including:
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Enhanced whistleblowing protections for sexual harassment
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Day-one paternity leave and unpaid parental leave
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Establishment of the Fair Work Agency in April 2026
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Reforms affecting trade unions, industrial action, and political funds
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Ending exploitative zero-hours contracts in 2027
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Flexible working and collective redundancy protections
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Why the delay matters
Experts say the pushback provides breathing space for employers to review dismissal and re-engagement processes, particularly where changes to terms and conditions may be contentious. It also allows time for the Government to consult on the definition of “restricted variation” and ensure the regulations are clear.
Stephen Simpson, principal editor at Brightmine, notes: “While only a small percentage of organisations currently view fire and rehire as the most pressing change, the risk is substantial. HR teams should review dismissal procedures now to avoid costly legal and financial consequences.”
Lucy Atherton, head of employment law at Make UK, adds: “The delay is helpful, but key measures remain in place. Employers should use this time wisely to ensure compliance and minimise disruption.”
Steps employers can take now
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Audit roles where changes to terms may be needed in the next 12 months.
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Review existing dismissal, re-engagement, and consultation procedures.
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Train managers on the updated statutory code of practice to avoid tribunal risk.
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Document any proposals for contract changes carefully to show reasonable steps were taken.
Updated Timeline at a Glance
18 February 2026 – Trade union reforms and protections for industrial action take effect
1 April 2026 – Repeal of certain trade union levies
6 April 2026 – Strengthened whistleblowing protections, statutory sick pay reforms, and bereavement leave updates
7 April 2026 – Fair Work Agency established
October 2026 – Social care negotiating body, procurement code, sexual harassment and industrial action measures
December 2026 – Mandatory Seafarers’ Charter
January 2027 – Fire and rehire ban, reduction in unfair dismissal qualifying period, removal of compensation cap
2027 – Flexible working, zero-hours contract reforms, enhanced protections for pregnant women, bereavement leave, umbrella company regulation, and electronic trade union ballots
The timeline shows a phased approach, giving employers time to prepare, but significant changes will take full effect from 2027, reshaping dismissal and contract management in the UK.
We can help!
Supportis can help your business prepare for the upcoming Employment Rights Act 2025 changes, including fire and rehire protections, reductions to unfair dismissal qualifying periods, and new contractual obligations.
We can review your dismissal and re-engagement processes, update contracts and policies, train managers on the legal requirements, and provide practical, commercially focused advice to ensure your business remains compliant while managing workforce changes effectively.
Call us on 0161 603 2156 or email [email protected].
