Be Aware UK
News and views from DLA Piper's Employment team
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The Employment Rights Act 2025

Preparing for change
The Employment Rights Act 2025 (ERA) represents the most significant overhaul of UK employment law in a generation. Its overall impact is to rebalance risk and flexibility in favour of workers, materially increasing employer financial exposure, compliance obligations and litigation risk. The changes will be phased in during 2026–27.
Click here for the key changes →
Click here for the gov.uk implementation timetable→On the horizon

Our tracker contains an innovative traffic-light system to alert you to the current status of each development as well as one-click access to each of the relevant consultation papers and government responses. ‘On the horizon’ also provides instant access to relevant legislation, including draft Bills.
‘On the horizon’ is updated when new information is available and is, therefore, an invaluable resource to help you to keep abreast of the latest employment law reforms.
Checklists
Rates and limits
| Category | Value | Applicable Date |
|---|---|---|
| Week's pay cap | GBP751 | 6 April 2026 – 5 April 2027 |
| Unfair dismissal | ||
| Basic award (max) | GBP22,530 | 6 April 2026 – 5 April 2027 |
| Compensatory award (max) | GBP123,453 / 52 weeks' pay Uncapped |
6 April 2026 – 31 Dec 2026 1 January 2027 onwards |
| Redundancy | ||
| Statutory redundancy payment (max) | GBP22,530 | 6 April 2026 – 5 April 2027 |
| Failure to inform and consult | 180 days' gross pay | From 6 April 2026 |
| Maternity / Adoption pay | GBP194.32 | 6 April 2026 – 5 April 2027 |
| Paternity pay | GBP194.32 | 6 April 2026 – 5 April 2027 |
| Shared parental leave | GBP194.32 | 6 April 2026 – 5 April 2027 |
| Statutory sick pay | GBP123.25 | 6 April 2026 – 5 April 2027 |
| National minimum wage | ||
| 21 and over | GBP12.71 | 1 April 2026 – 31 March 2027 |
| 18–20 | GBP10.85 | 1 April 2026 – 31 March 2027 |
| 16–17 | GBP8.00 | 1 April 2026 – 31 March 2027 |
| Apprentices | GBP8.00 | 1 April 2026 – 31 March 2027 |
| TUPE failure to inform | 13 weeks' gross pay | N/A |


