The Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026
These Regulations establish the specific commencement dates for further sections of the Employment Rights Act 2025, focusing primarily on provisions related to unfair dismissal found in section 25 and Schedule 3.
Specifically, key elements are brought into force partially on 1st July 2026 to enable procedural amendments, while the main body of section 25 and related consequential amendments commence fully on 1st January 2027.
The instrument also establishes transitional and saving provisions to govern cases where an employee's effective date of termination bridges these commencement dates.
Arguments For
Ensures a structured, phased introduction of complex employment law reforms, allowing businesses and HR departments time to adapt to changes regarding unfair dismissal rules (Section 25).
Enables necessary secondary legislation and consequential amendments (via Schedule 3, paragraph 5) to be prepared and enacted before the main substantive changes take effect.
Provides legal clarity through transitional provisions (Regulation 4), specifying how dismissals occurring just before the new commencement dates will be treated under the old or new legal frameworks.
Arguments Against
The staggered commencement, with different provisions coming into force on July 1, 2026, and January 1, 2027, creates potential complexity for employers managing different employment contracts concurrently.
Transitional provisions regarding the 'effective date of termination' (Regulation 4) might lead to confusion or disputes over which set of rules (pre- or post-commencement) applies to dismissals initiated close to the cut-off dates.
Delaying the full commencement of Section 25 (unfair dismissal rules) until January 2027 postpones securing the intended benefits of the Employment Rights Act 2025 for employees.
STATUTORY INSTRUMENTS
2026 No. 559 (C. 46)
TERMS AND CONDITIONS OF EMPLOYMENT
The Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026
Made 26th May 2026
The Secretary of State makes these Regulations in exercise of the powers conferred by sections 155 and 159(3) and (4) of the Employment Rights Act 2025( 1 ).
This heading identifies the document as a Statutory Instrument made in 2026, numbered 559, corresponding to Commencement Order 46.
It falls under the domain of Employment Conditions and was officially made on May 26, 2026.
The Secretary of State issued these Regulations using powers granted under sections 155, 159(3), and 159(4) of the Employment Rights Act 2025 (ERA 2025).
Citation and interpretation
- -(1) These Regulations may be cited as the Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026.
- (2) In these Regulations 'the 2025 Act' means the Employment Rights Act 2025.
The first regulation cited establishes the short title by which these Regulations are officially known.
They are styled as the Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026.
This regulation also provides an interpretation, defining 'the 2025 Act' consistently throughout the document to mean the Employment Rights Act 2025.
Provisions of the 2025 Act coming into force on 1st July 2026
- The following provisions of the 2025 Act come into force on 1st July 2026- 2. (a) section 25(5) (right not to be unfairly dismissed: qualifying period and compensation), to the extent that it relates to the provision specified in paragraph (b); 2. (b) paragraph 5 of Schedule 3 (power to make further consequential amendments).
This section specifies that certain parts of the ERA 2025 take legal effect starting from July 1, 2026.
This includes a specific part of Section 25(5), which deals with the qualification period or compensation calculation for unfair dismissal claims.
Crucially, this early commencement also brings into force paragraph 5 of Schedule 3.
This grants the regulatory power to make further consequential amendments, likely to ensure related legislation is aligned before the main changes take effect.
Provisions of the 2025 Act coming into force on 1st January 2027
- The following provisions of the 2025 Act come into force on 1st January 2027, subject to the transitional and saving provisions in regulation 4- 2. (a) section 25, to the extent not already in force; 2. (b) Schedule 3 (minor and consequential amendments relating to section 25), to the extent not already in force.
This provision sets the main commencement date for the remainder of the unfair dismissal law reforms on January 1, 2027.
This date is conditioned by the transitional rules detailed in Regulation 4.
On this date, the substantive provisions of section 25 of the ERA 2025 (covering unfair dismissal rights, qualifying periods, and compensation) come into force, alongside any remaining minor and consequential amendments found in Schedule 3 related to that section.
Transitional and saving provisions
- -(1) The amendments made by section 25(2) and (3) of, and paragraphs 1(2), 1(3)(a), 1(4) to (7), 1(9), 2(3) and 4 of Schedule 3 to, the 2025 Act-
( 1 ) 2025 c. 36.
- (a) have effect in any case where an employee is dismissed before 1st January 2027 but the effective date of termination falls on or after that date;
- (b) do not have effect in any case where the effective date of termination falls before 1st January 2027.
(2) In this regulation 'dismissed' and 'the effective date of termination' have the same meaning as in Part 10 of the Employment Rights Act 1996( 2 ) (see sections 95( 3 ) and 97( 4 ) of that Act).
(3) The amendment made by section 25(4) of the 2025 Act does not affect any regulations made under subsection (5) of section 209 of the Employment Rights Act 1996( 5 ) as that subsection had effect immediately before the coming into force of that amendment.
26th May 2026
( 2 ) 1996 c. 18.
( 3 ) Section 95 was amended by the Employment Relations Act 2004 (c. 24), paragraph 29 of Schedule 1 and Schedule 2, and S.I. 2002/2034.
( 4 ) Section 97 was amended by the Employment Relations Act 1999 (c. 26), paragraph 14 of Part 3 of Schedule 4 and Table 2 of Schedule 9, and S.I. 2002/2034.
( 5 ) Section 209(5) was amended by the Employment Relations Act 1999 (c. 26), Table 9 of Schedule 9, and S.I. 2006/1031.
Kate Dearden Parliamentary Under Secretary of State Department for Business and Trade
Regulation 4 addresses transitional arrangements for amendments made by specific parts of Section 25 and Schedule 3 of the ERA 2025.
Sub-regulation (1) sets a rule based on the 'effective date of termination' (EDT) rather than the date of dismissal itself.
Where the EDT falls on or after January 1, 2027, the new amendments apply, even if the employee was dismissed beforehand (1)(a).
Conversely, if the EDT is before January 1, 2027, the old rules apply, regardless of when the dismissal happened (1)(b).
Sub-regulation (2) clarifies that terms like 'dismissed' and 'effective date of termination' use the definitions found in Part 10 of the Employment Rights Act 1996.
Furthermore, sub-regulation (3) saves existing regulations made under Section 209(5) of the 1996 Act from being automatically invalidated by the amendment made by Section 25(4) of the 2025 Act.
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations commence section 25 of, and Schedule 3 to, the Employment Rights Act 2025 (c. 36) (the '2025 Act'), which relate to unfair dismissal. Section 25(5) of the 2025 Act is partially commenced, and paragraph 5 of Schedule 3 to the 2025 Act is commenced, on 1st July 2026. This is to enable the power in paragraph 5 of Schedule 3 to the 2025 Act to be exercised from this date. It enables further consequential amendments to be made when exercising the power in section 154 of the 2025 Act (power to make consequential amendments) in order to make amendments in consequence of the repeal of section 124 of the Employment Rights Act 1996 (c. 18) by section 25(3) of the 2025 Act. The remainder of section 25 of, and Schedule 3 to, the 2025 Act are commenced on 1st January 2027. Regulation 4 of these Regulations contains transitional and saving provisions in relation to cases where the effective date of termination falls either on or after, or before, 1st January 2027.
The impact assessments completed for the Employment Rights Bill, introduced to Parliament on 10th October 2024, contain an assessment of the effect that the reforms to employment law and industrial relations law will have on the costs of business, the voluntary sector and the public sector. They are available at: https://bills.parliament.uk/bills/3737/publications. They are supplemented by economic analysis and enactment summary impact assessments published on 7th January 2026 which take account of changes during Bill passage. They are available at: https://www.gov.uk/guidance/ employment-rights-bill-impact-assessments. Printed copies of all of the documents mentioned in this paragraph can be obtained from the Department for Business and Trade, Old Admiralty Building, Admiralty Place, London, SWIA 2DY.
The Explanatory Note confirms the purpose: to commence provisions in Section 25 and Schedule 3 of the ERA 2025, which concern unfair dismissal rules.
It reiterates the phased commencement: part of Section 25(5) and Schedule 3(5) begin on July 1, 2026, specifically to activate the power (under Section 154 of the 2025 Act) to make necessary consequential amendments, such as those following the repeal of Section 124 of the 1996 Act.
The full commencement of Section 25 and Schedule 3 occurs on January 1, 2027, subject to the transitional rules in Regulation 4.
The Note also references supporting impact assessments relating to the broader Employment Rights Bill, directing readers to specific parliamentary and government websites for cost and effect analysis.
NOTE AS TO EARLIER COMMENCEMENT REGULATIONS
(This note is not part of the Regulations)
The following provisions of the Employment Rights Act 2025 have been brought into force by commencement regulations made before the date of these Regulations.
| Provision | Date of Commencement | S.I. No. | |---|---|---| | Sections 1 to 4 (partially) | 6th January 2026 | 2026/3 | | Section 5(1) and (2) (partially) | 6th January 2026 | 2026/3 | | Section 6(1) and (2) (partially) | 6th January 2026 | 2026/3 | | Sections 7 and 8 | 6th January 2026 | 2026/3 | | Section 9 (partially) | 6th January 2026 | 2026/3 | | Sections 10 to 13 | 6th April 2026 | 2026/373 | | Section 15 (partially) | 18th February 2026 | 2026/3 | | Section 15 (remainder) | 6th April 2026 | 2026/3 | | Section 16 (partially) | 6th January 2026 | 2026/3 | | Section 16 (partially) | 18th February 2026 | 2026/3 |
Status: This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
| Provision | Date of Commencement | S.I. No. | |---|---|---| | Section 16 (remainder) | 6th April 2026 | 2026/3 | | Section 17(1) and (2) (partially) | 6th January 2026 | 2026/3 | | Section 17 (partially) | 18th February 2026 | 2026/3 | | Section 17 (remainder) | 6th April 2026 | 2026/3 | | Section 18(1) to (4), (10) and (11) (partially) | 6th January 2026 | 2026/3 | | Section 23 | 6th April 2026 | 2026/323 | | Section 24(1) and (2) (partially) | 6th January 2026 | 2026/3 | | Section 24(1) and (5) (partially) | 6th April 2026 | 2026/323 | | Section 26 | 6th January 2026 | 2026/3 | | Section 27(1) (partially) | 6th January 2026 | 2026/3 | | Section 27(2) to (5) | 6th January 2026 | 2026/3 | | Section 27(6) (partially) | 6th January 2026 | 2026/3 | | Section 27 (remainder) | 6th April 2026 | 2026/323 | | Section 28(1) to (3) (partially) | 6th January 2026 | 2026/3 | | Section 28(1) to (3) (partially) | 6th April 2026 | 2026/323 | | Section 28(6) | 6th January 2026 | 2026/3 | | Section 29(1) to (5) (partially) | 6th January 2026 | 2026/3 | | Section 30(1) (partially) | 6th January 2026 | 2026/3 | | Section 30(3) | 6th January 2026 | 2026/3 | | Section 30 (remainder) | 6th April 2026 | 2026/323 | | Section 31 | 18th February 2026 | 2026/3 | | Section 32(1) to (3) and (5) to (7) (partially) | 6th January 2026 | 2026/3 | | Section 32(4) | 6th January 2026 | 2026/3 | | Section 33 | 6th April 2026 | 2026/323 | | Section 35 | 6th April 2026 | 2026/323 | | Section 36 (partially) | 6th January 2026 | 2026/3 | | Sections 39 to 55 | 6th April 2026 | 2026/323 | | Section 57 | 18th February 2026 | 2026/3 | | Section 58(1), (2) and (5) (partially) | 6th January 2026 | 2026/3 | | Section 59(1) and (2) (partially) | 6th January 2026 | 2026/3 |
| Provision | Date of Commencement | S.I. No. | |---|---|---| | Section 60 (partially) | 6th January 2026 | 2026/3 | | Section 60 (partially) | 6th April 2026 | 2026/323 | | Sections 64 and 65 (partially) | 6th January 2026 | 2026/3 | | Section 76(1) and (2) (partially) | 6th January 2026 | 2026/3 | | Section 76 (remainder) | 18th February 2026 | 2026/3 | | Section 77 | 18th February 2026 | 2026/3 | | Section 79 | 18th February 2026 | 2026/3 | | Section 81 | 18th February 2026 | 2026/3 | | Section 85 | 1st April 2026 | 2026/323 | | Section 88 | 6th January 2026 | 2026/3 | | Section 90(1) and (3) (partially) | 6th January 2026 | 2026/3 | | Section 90 (partially) | 7th April 2026 | 2026/323 | | Section 91 (partially) | 6th January 2026 | 2026/3 | | Section 91 (partially) | 7th April 2026 | 2026/323 | | Section 92(1) | 7th April 2026 | 2026/323 | | Section 92(2) (partially) | 7th April 2026 | 2026/323 | | Section 92(3) to (6) | 7th April 2026 | 2026/323 | | Section 93 | 7th April 2026 | 2026/323 | | Sections 94 to 98 (partially) | 7th April 2026 | 2026/323 | | Sections 99 to 102 | 7th April 2026 | 2026/323 | | Section 103(1), (2) and (7) (partially) | 6th January 2026 | 2026/3 | | Section 103 (partially) | 7th April 2026 | 2026/323 | | Section 104 (partially) | 6th January 2026 | 2026/3 | | Section 104 (partially) | 7th April 2026 | 2026/323 | | Sections 105 to 107 (partially) | 7th April 2026 | 2026/323 | | Section 108(1) and (2) | 6th January 2026 | 2026/3 | | Sections 108 and 109 (partially) | 7th April 2026 | 2026/323 | | Sections 110 to 115 | 7th April 2026 | 2026/323 | | Section 118(2) (partially) | 6th January 2026 | 2026/3 | | Section 118(5) to (7) | 6th January 2026 | 2026/3 | | Sections 119 and 120 (partially) | 7th April 2026 | 2026/323 |
| Provision | Date of Commencement | S.I. No. | |---|---|---| | Sections 121 and 122 | 7th April 2026 | 2026/323 | | Section 123 (partially) | 7th April 2026 | 2026/323 | | Section 124 | 7th April 2026 | 2026/323 | | Section 125 (partially) | 7th April 2026 | 2026/323 | | Sections 126 to 134 | 7th April 2026 | 2026/323 | | Section 135(6) and (7) | 6th January 2026 | 2026/3 | | Section 135 (partially) | 7th April 2026 | 2026/323 | | Sections 136 to 141 | 7th April 2026 | 2026/323 | | Section 142 (partially) | 7th April 2026 | 2026/323 | | Section 143 | 6th January 2026 | 2026/3 | | Sections 144 to 148 | 7th April 2026 | 2026/323 | | Section 149(1) (partially) | 6th January 2026 | 2026/3 | | Section 149(1) (partially) | 7th April 2026 | 2026/323 | | Section 149(2) | 6th January 2026 | 2026/3 | | Section 149(3) | 7th April 2026 | 2026/323 | | Section 150(1) (partially) | 7th April 2026 | 2026/323 | | Section 150(2) | 7th April 2026 | 2026/323 | | Section 151(1) (partially) | 6th January 2026 | 2026/3 | | Section 151(1) (partially) | 7th April 2026 | 2026/323 | | Section 151(2) | 6th January 2026 | 2026/3 | | Section 151(3) and (4) | 7th April 2026 | 2026/323 | | Section 151(5) | 6th January 2026 | 2026/3 | | Section 153 | 6th January 2026 | 2026/3 | | Schedule 1 (partially) | 6th January 2026 | 2026/3 | | Schedule 2 (partially) | 6th January 2026 | 2026/3 | | Schedule 6 (partially) | 6th January 2026 | 2026/3 | | Schedule 6 (partially) | 6th April 2026 | 2026/323 | | Schedule 7 (partially) | 6th January 2026 | 2026/3 | | Schedule 7 (partially) | 7th April 2026 | 2026/323 | | Schedule 8 | 7th April 2026 | 2026/323 | | Schedule 9 (partially) | 7th April 2026 | 2026/323 | | Schedule 10 (partially) | 6th January 2026 | 2026/3 | | Schedule 10 (partially) | 7th April 2026 | 2026/323 | | Schedule 11 (partially) | 6th January 2026 | 2026/3 |
| Provision | Date of Commencement | S.I. No. | |---|---|---| | Schedule 11 (remainder) | 7th April 2026 | 2026/323 |
This final section, titled 'Note as to Earlier Commencement Regulations,' is informative and lists the sections of the ERA 2025 that have already been brought into force by previous commencement orders, such as S.I. 2026/3 and S.I. 2026/373.
It provides a comprehensive historical context for the introduction of the new employment rights legislation.
The tables meticulously detail which provisions became effective on specific dates in January, February, March, and April 2026, often with only partial commencement for lengthy sections or schedules.
This information is crucial for understanding which parts of the ERA 2025 are already active versus those being addressed by the current regulations.
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