Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026

In brief

Fourth commencement instrument under the Employment Rights Act 2025 (SI 2026/559, made 26 May 2026). Regulation 2 brings into force on 1 July 2026 s.25(5), so far as it relates to Schedule 3 paragraph 5, and Schedule 3 paragraph 5 (power to make further consequential amendments). Regulation 3 brings into force on 1 January 2027, subject to regulation 4, s.25 (right not to be unfairly dismissed: qualifying period and compensation) and Schedule 3 (minor and consequential amendments), so far as not already in force. Regulation 4 makes transitional and saving provision by reference to the effective date of termination: the amendments made by s.25(2) and (3) and the listed paragraphs of Schedule 3 have effect where the effective date of termination falls on or after 1 January 2027 and do not have effect where it falls before that date.

Key provisions

• reg.2 — 1 July 2026: power to make further consequential amendments : Brings into force on 1 July 2026 s.25(5), to the extent that it relates to paragraph 5 of Schedule 3, and paragraph 5 of Schedule 3 (power to make further consequential amendments). The explanatory note says this is so that the power can be exercised from that date, to make amendments in consequence of the repeal of ERA 1996 s.124 by s.25(3).
• reg.3 — 1 January 2027: unfair dismissal qualifying period and compensation (ERA 2025 s.25 and Schedule 3) : Brings into force on 1 January 2027, subject to regulation 4, s.25 and Schedule 3 so far as not already in force. As enacted, s.25(2) amends ERA 1996 s.108 so that the qualifying period of employment for unfair dismissal is six months instead of two years; s.25(3) omits ERA 1996 s.124 (limit of compensatory award etc); s.25(4) amends s.209(5) of ERA 1996; Schedule 3 makes minor and consequential amendments.
• reg.4 — Transitional and saving provision: effective date of termination : Regulation 4(1): the amendments made by s.25(2) and (3) and by Schedule 3 paragraphs 1(2), 1(3)(a), 1(4) to (7), 1(9), 2(3) and 4 have effect where an employee is dismissed before 1 January 2027 but the effective date of termination falls on or after that date, and do not have effect where the effective date of termination falls before 1 January 2027. Regulation 4(2): dismissed and the effective date of termination have the meanings in Part 10 of ERA 1996 (ss.95 and 97). Regulation 4(3): the s.25(4) amendment does not affect regulations already made under s.209(5) of ERA 1996 as it had effect immediately before that amendment.

When relevant

Establishing the operative date and the transitional rule for the unfair dismissal changes in ERA 2025 s.25 and Schedule 3: the six-month qualifying period of employment (ERA 1996 s.108) and the omission of the s.124 limit of compensatory award, from 1 January 2027 by effective date of termination. Use for probationary and early-employment dismissals and for any analysis that asks whether an employee with less than two years' service could bring an ordinary unfair dismissal claim, or whether the s.124 limit applied, on a given effective date of termination. Claims under the Equality Act 2010 do not depend on length of service.