New Acas Survey on the Employment Rights Act 2025: What Will Have the Biggest Impact?
March 3, 2026

On 26 February 2026, Acas published new survey findings revealing which elements of the Employment Rights Act 2025 (“ERA 2025”) are expected to have the greatest impact.

The research, carried out by YouGov, provides a valuable indicator of how organisations and individuals are preparing for the most wide‑ranging reform to employment law in a generation.


While the full impact of the Act will unfold over the coming years (with many of the changes now expected in 2027), the survey highlights clear priorities and concerns - most notably around statutory sick pay (“SSP”), unfair dismissal, paternity rights, and flexible working.


Background

Acas commissioned YouGov to poll employers and employees in a representative sample of British businesses. The surveys were conducted online and comprised 1,011 senior decision makers and 1,000 employees across Great Britain. Fieldwork took place throughout February 2026.


Respondents were asked: “Which three, if any, of the following new law changes outlined in the ERA 2025 do you think will have the biggest impact in your workplace?”


Employer results:

  • Workers being able to take paternity leave from their first day of employment – 28%
  • Workers getting statutory sick pay from their first day off instead of waiting until the fourth day of illness – 43%
  • Requiring employers to do more to prevent sexual harassment at work – 10%
  • Stronger protections against unfair dismissal for pregnant workers and those returning from maternity leave – 11%
  • Making it easier for trade unions to have the right to negotiate with employers over pay and conditions and to take industrial action – 16%
  • Limiting dismiss and re-employ practices (known as 'fire and rehire') that force workers to accept worse terms and conditions – 11%
  • Workers being protected from unfair dismissal after 6 months in a job instead of 2 years – 31%
  • Giving workers on zero-hour contracts the option of having guaranteed working hours to reflect their usual working hours – 12%
  • Making it easier for workers to get flexible working arrangements – 25%
  • Stronger financial penalties against employers that fail to consult their workers in large redundancies – 5%
  • None of these – 15%
  • Don't know – 7%


Employee results:

  • Workers being able to take paternity leave from their first day of employment – 20%
  • Workers getting statutory sick pay from their first day off instead of waiting until the fourth day of illness – 36%
  • Requiring employers to do more to prevent sexual harassment at work – 7%
  • Stronger protections against unfair dismissal for pregnant workers and those returning from maternity leave – 10%
  • Mmaking it easier for trade unions to have the right to negotiate with employers over pay and conditions and to take industrial action – 11%
  • Limiting dismiss and re-employ practices (known as 'fire and rehire') that force workers to accept worse terms and conditions – 14%
  • Workers being protected from unfair dismissal after 6 months in a job instead of 2 years – 30%
  • Giving workers on zero-hour contracts the option of having guaranteed working hours to reflect their usual working hours – 19%
  • Making it easier for workers to get flexible working arrangements – 28%
  • Stronger financial penalties against employers that fail to consult their workers in large redundancies – 9%
  • None of these – 10%
  • Don't know – 15%


The findings make clear that, for both employers and employees, the reforms attracting the greatest attention are the introduction of SSP from day one of illness and the reduction of the unfair dismissal qualifying period from two years to six months. Alongside day‑one paternity leave rights and strengthened flexible working measures, these developments mark a shift in workplace rights and the operational responsibilities facing organisations. However, the proportion of respondents choosing “none of these” or “don’t know” is noteworthy and may indicate varying levels of awareness or readiness across different sectors. This is an issue employers will need to promptly address as implementation dates approach.


Key Findings


SSP:

SSP emerged as the most impactful reform area for both groups, with 43% of employers and 36% of employees identifying it as the change likely to have the greatest impact.


From 6 April 2026, SSP will become payable from the first day of sickness absence. Under the current rules, workers must be absent for at least four consecutive days and meet certain earnings and notification requirements before qualifying.


For employers, the change represents increased cost exposure and a likely need to strengthen absence management procedures. For workers, it offers earlier financial support. According to the Government’s ERA 2025: Economic Analysis published in January 2026, the reforms to SSP are expected to increase the amount of sick pay workers receive by around £400 million per year, with the annual direct impact on businesses estimated to be between £100 million and £500 million.


Unfair Dismissal: 

The second most commonly selected reform relates to unfair dismissal protections, with 31% of employers and 30% of workers identifying this as a significant shift.


From 1 January 2027, employees will acquire the right to claim unfair dismissal after just six months of employment. Under current law, two years of continuous service are required. This reduction in qualifying period is likely to influence recruitment, probation management, record‑keeping, and the general handling of workplace concerns.


Different Priorities for Employers and Workers

A divergence emerged when respondents were asked to identify the third most impactful reform. Employers placed day‑one paternity leave rights next (28%), reflecting expected operational and staffing implications when the new entitlement takes effect on 6 April 2026. Employees selected easier access to flexible working (28%), reflecting ongoing demand for adaptable working arrangements and better work‑life balance. From 2027, new measures will strengthen and streamline the flexible working process.


Why Is This Important?

This survey provides an early indication of where the ERA 2025 will be felt most acutely and where employers may face the greatest operational and legal challenges. Three key themes emerge:


Cost and Process Adjustments

o  Day‑one sick pay and expanded unfair dismissal rights will require employers to tighten procedures around absence, performance, and disciplinary management. The margin for procedural error will inevitably shrink.

Sustainable Policies

o  Policies on paternity leave, flexible working, and parental rights will require comprehensive review well ahead of the statutory commencement dates. Employers relying on long-standing processes may need significant updates.

Changing  Workplace Expectations

o  Workers are increasingly prioritising flexibility and early access to rights, and the ERA 2025 aligns with these expectations. Organisations that adapt early are likely to face fewer disputes and maintain stronger employee relations.


Ultimately, the survey reinforces the transformative nature of the ERA 2025. With further reforms coming into force from April 2026, employers who have not yet acted should prioritise preparation. Proactive review of workplace policies and procedures, supported by seeking guidance, will be vital to ensure compliance and mitigate exposure to risk.


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