Understanding the Employment Rights Act 2025 ⚖️ : What It Means for Future Architects and Practice Owners

The UK government’s Employment Rights Act 2025 is one of the most significant updates to employment law in recent years. Introduced as part of the wider “Plan to Make Work Pay,” this legislation builds on the Employment Rights Act 1996 and introduces wide-ranging reforms that will affect both employers and employees across multiple sectors including architecture.

For those entering the profession not just as designers, but as future business owners, managers, and leaders, understanding these changes is essential. Employment law is no longer something handled solely by HR, it’s a core responsibility of running a practice ethically and legally.

What Is the Employment Rights Act 2025?

The Employment Rights Act 2025 received Royal Assent in December 2025. Rather than replacing previous legislation, it amends and expands existing laws, introducing new rights across areas such as:

• Working hours

• Unfair dismissal

• Sick pay

• Family leave

• Equality and discrimination

• Trade union rights

Importantly, these changes are not all implemented at once. Most reforms will roll out gradually between 2026 and 2027, making it crucial to understand both the substance and the timeline.

The Big Picture: What Is the Act Trying to Do?

At its core, the Act focuses on seven major themes:

1. Reducing one-sided flexibility (especially zero-hours contracts)

2. Strengthening unfair dismissal protections

3. Improving pay security, including sick pay reforms

4. Enhancing family-friendly and flexible working rights

5. Tackling harassment and limiting NDAs

6. Strengthening trade union protections

7. Improving enforcement through a new Fair Work Agency

For architecture, this represents a major cultural shift. The profession has historically relied on long hours, informal arrangements, and inconsistent HR practices, particularly in smaller studios. Many of these norms are now being directly challenged.

1. Ending One-Sided Flexibility

A key reform targets zero-hours and low-hours contracts.

Under the new framework:

• Workers’ actual working patterns will be assessed over time

• Employers must offer contracts that reflect reality, not just nominal terms

• Workers can challenge employers who try to avoid compliance

Example in Practice

Imagine a Part 1 Architectural Assistant contracted for one day a week but consistently working three. Under the new law, the employer must formalise those three days, providing greater income stability and rights.

2. Unfair Dismissal, Redundancy, and ‘Fire and Rehire’

Major changes are coming to dismissal law:

• The qualifying period for unfair dismissal drops from 2 years to 6 months (from 2027)

• The cap on compensation is removed

• ‘Fire and rehire’ practices become automatically unfair in most cases

Why This Matters in Architecture

Practices often release staff when projects end. Under the new rules:

• More employees will qualify for protection

• Employers must follow fair procedures and justify decisions

Redundancy rules are also tightened:

• Collective redundancy thresholds will apply across the whole organisation, not just individual offices

3. Family Rights and Flexible Working

The Act strengthens work-life balance significantly:

• Paternity leave and parental leave become day-one rights

• A new right to bereavement leave, including pregnancy loss

• Stronger protections for pregnant employees and new parents

Flexible Working

Employers must now:

• Provide a clear, justified reason for refusing requests

• Demonstrate that refusal is reasonable, not just convenient

For architecture studios used to rigid “studio culture,” this means:

• Requests for hybrid work or adjusted hours must be seriously considered and documented

4. Harassment, Equality, and NDAs

This is one of the most impactful areas of reform.

Stronger Employer Duties

From October 2026:

• Employers are liable for third-party harassment (e.g., clients or contractors)

• They must take all reasonable steps to prevent it

Key Changes

• Stronger protections against sexual harassment

• Whistleblowing expanded to cover harassment disclosures

• NDAs restricted, they cannot silence victims of misconduct

For architectural practices, this means:

• Clear policies and training are essential

• Culture and leadership accountability are under scrutiny

5. Trade Unions and Industrial Action

The Act strengthens workers’ rights in collective action:

• Dismissal for striking becomes automatically unfair

• Strike ballot mandates last longer

• Notice requirements are reduced

Employers must also:

• Inform workers of their right to join unions

• Allow reasonable union access

Even in non-unionised practices, this signals a shift toward greater collective organisation, especially among younger staff.

6. The Fair Work Agency and Stronger Enforcement

A new Fair Work Agency will oversee enforcement of key rights, including:

• Minimum wage

• Labour exploitation

• Worker protections

Other Key Changes

• Tribunal claim time limits increase from 3 to 6 months

• Stronger enforcement of holiday pay and sick pay

For employers, this means:

• Non-compliance is more likely to be detected and penalised

• Informal or inconsistent practices carry greater risk

7. Additional Changes: Sick Pay and Sector Reforms

Statutory Sick Pay (SSP)

• Now payable from day one of illness

• Lower earnings limit removed

This benefits:

• Junior staff

• Part-time workers

Outsourcing and Public Sector Work

• New protections aim to prevent “two-tier workforces”

• Relevant for practices involved in public sector contracts or TUPE transfers

Timeline: When Do These Changes Happen?

• Dec 2025 – Act becomes law

• Early 2026 – Initial frameworks introduced

• Apr 2026 – Fair Work Agency launches, SSP reforms begin

• Oct 2026 – Stronger harassment laws, longer tribunal deadlines

• Jan 2027 – Major changes (unfair dismissal, redundancy rules)

• Throughout 2027 – Further rights and detailed regulations implemented

Final Thoughts: Why This Matters for Architects

The Employment Rights Act 2025 represents a fundamental shift in workplace expectations.

For the architecture profession, it means:

• The traditional reliance on informal flexibility and long hours is no longer sustainable

• Employers must justify decisions clearly and fairly

• Workplace culture, especially around equality and respect, becomes legally critical

• Enforcement is stronger, meaning compliance is not optional

As future architects, managers, and business owners, understanding these changes is not just helpful it’s essential. The way practices operate is evolving, and those who adapt early will be better positioned to build fair, resilient, and successful workplaces.