Rewriting the rulebook: what the Employment Rights Act means for universities

The Employment Rights Act 2025 (the Act) introduces significant reforms to employment law. The changes are being introduced in phases, with several already in force and further reforms due in 2027.

In this article, we set out the key reforms and what universities should be doing now to prepare.

Employment Tribunal time limits

On 1 October 2026, the time limit for bringing most Employment Tribunal claims increased from three months to six months. Transitional rules mean that the old three-month limit may still apply where the matter complained of started before that date, so time limits will need to be reviewed on a case-by-case basis.

With Acas early conciliation now lasting up to 12 weeks, a claim may arrive almost a year after the event, making clear contemporaneous records and appropriate document retention essential.

Anti-harassment

Since 30 October 2026, the existing duty to take reasonable steps to prevent sexual harassment of employees has been strengthened to a duty to take ‘all reasonable steps’.

Employers can now also be liable for harassment of their employees by third parties, such as students, visitors and contractors, where they have failed to take ‘all reasonable steps’ to prevent it. This is particularly relevant on campus, where staff interact daily with large numbers of students and members of the public.

Trade union changes

On 30 October 2026, significant trade union reforms took effect. Among the most notable is a new statutory right of access, which allows trade unions to seek access to the workplace to meet, represent and recruit members.

Alongside this, from 1 January 2027, employers will also have to provide workers with a written statement of their right to join a trade union and remind them of it at regular intervals.

Given the high level of union membership in higher education, universities should expect access requests and plan their response now, including reviewing existing recognition and staff engagement arrangements.

Changes to unfair dismissal rights

From 1 January 2027, the qualifying period for ordinary unfair dismissal protection will fall from two years to six months, and the cap on the compensatory award will be removed.

The change applies to dismissals from that date, so anyone with six months’ service by 1 January will be protected. Probationary periods and early performance management will carry far greater weight, and the financial exposure in unfair dismissal claims could increase significantly.

Fire and rehire

The Act will restrict the practice of dismissal and re-engagement, known as ‘fire and rehire’, to limited circumstances where the employer is in financial difficulty and genuinely has no reasonable alternative.

Dismissing an employee for refusing to agree to a restricted variation, including changes to pay, hours, annual leave and pensions, or to a contractual term permitting the employer to make such changes without consent, will be automatically unfair.

The restrictions also extend to ‘fire and replace’, where a dismissed employee is replaced by another person performing substantially the same role.

Originally planned for October 2026, these changes are now expected in March 2027. Universities planning restructures or other contractual changes should factor this into their timetables.

Family-friendly rights and flexible working

Since April 2026, paternity leave and unpaid parental leave have been day-one rights.

From April 2027, employees are expected to have a day-one right to bereavement leave, which will also cover pregnancy loss before 24 weeks.

From October 2027, flexible working requests will also be subject to a higher threshold for refusal. Employers are expected to be able to refuse flexible working requests only where it is reasonable to do so, following a prescribed process and explaining their decision.

Universities should ensure managers can assess and respond to requests consistently.

What this means for universities

Universities should be mindful of the changes already in force and prepare for those still to come. In particular, they should:

• Update contracts and policies: amend affected policies, such as harassment, disciplinary and dismissal, sickness absence, family leave and flexible working policies
• Train managers: provide training on harassment duties, the unfair dismissal landscape and flexible working requests
• Strengthen probation: ensure recruitment and probation processes identify concerns well within six months
• Manage risk: carry out harassment risk assessments, plan for trade union access requests, review document retention periods, keep clear records and train managers and HR.

Future dates remain subject to change, so universities should keep these developments under review over the coming months to make sure they are well prepared for the changes due in 2027.