What the Employment Rights Act 2025 means for universities

The Employment Rights Act 2025 is here and it’s a big deal.

After months of parliamentary back-and-forth, the Bill finally made it onto the statute books just before Christmas. For universities, the implications are wide-ranging, and the clock is ticking on compliance.

What’s changed, and why does it matter?

The Act is the centrepiece of the government’s “Plan to Make Work Pay”, promising a shake-up of employment rights, union access, and labour market enforcement. For the sector, where workforce structures and contractual arrangements are particularly complex, these reforms need to be considered carefully. In this article, we have focused on five things, we consider that universities need to know now.

Five things universities need to know

1. Unfair dismissal: the bar just got lower and compensation higher 

From 2027, staff will only need six months’ service (down from two years) to claim unfair dismissal and the maximum cap on compensation is going. That means universities could face much bigger payouts if things go wrong. Universities should review probation policies, equip managers to proactively manage performance during probation and avoid extended probation periods, where possible, to reduce the legal risk.

2. Zero-hours and casual contracts: new rules, new risk

Think visiting lecturers, exam invigilators, and a lot of student-facing roles. The Act introduces rights to request guaranteed hours, proper notice of shifts, and compensation for cancellations. If you rely heavily on a casual workforce, generally or in certain areas, now’s the time to audit those contracts and review use, although these measures won’t be brought into effect until 2027.

3. Trade union access: expect more structured dialogue

With effect from 18 February 2026, the Act lowers the threshold for a valid industrial action ballot and shortens the notice period unions must give before taking action (14 to 10 days). It also extends the mandate for action from 6 to 12 months. This means it will be easier and quicker for unions to secure a mandate for strikes or other industrial action. Universities should expect a more agile approach from unions and be ready to respond to potential disruption with robust contingency planning and clear communication. It may be prudent to review recognition agreements including the dispute resolution procedures to seek to mitigate any negative impact.

4. Sexual Harassment: all reasonable steps to prevent 

From October 2026, the Act will require universities to take “all” reasonable steps, not just “reasonable steps”, to prevent sexual harassment of staff, with regulations to follow on what this means in practice. At the same time, employers will become liable for harassment of staff by third parties (such as students, visitors, or contractors) across all protected characteristics, unless they can show they took all reasonable steps to prevent it. Disclosures of sexual harassment will be explicitly protected under whistleblowing law, and most confidentiality clauses (NDAs) that seek to prevent staff from raising or disclosing allegations of discrimination or harassment will be void. For universities, these changes raise the bar for prevention, policy, and training and align closely with the Office for Students’ E6 condition of registration, which already requires robust systems to prevent and respond to harassment and sexual misconduct affecting students.

5. “Fire and rehire”: not so fast

Also from October 2026, dismissing and re-engaging staff to force through changes to pay, hours, leave, or benefits will be automatically unfair unless the university can prove it’s facing severe financial trouble. If you’re planning a restructure or harmonising terms from October onwards you’ll also need to follow the revised statutory Code of Practice and have your business case watertight.

Why does this matter for universities?

Universities are already navigating a maze of employment models, from permanent academics, fixed term researchers to casual student workers. These reforms demand a proactive approach to ensure legal compliance but also to maintain staff morale and institutional reputation. 

What should university leaders do now?

• Audit your casual contracts – zero-hours, fixed-term, and casual roles all need a fresh look.
• Review probation and dismissal policies and manager compliance – the shorter qualifying period and uncapped compensation change the risk calculus.
• Talk to your unions – early engagement can help manage expectations and smooth the path to compliance.
• Review sexual harassment policies and compliance – and make sure managers know what’s changing and keep an eye out for new regulations.
• Check your plans for restructuring or contract changes – “fire and rehire” is already a legal minefield, but the constraints on employers will be far more stringent from October onwards.
• Keep good records – documentation is your best defence if challenged.

The bottom line

The Employment Rights Act 2025 isn’t just another HR update but a cultural shift towards greater job security and worker voice. For universities, the challenge is to balance compliance with the need for flexibility to meet the complex needs of an institution in an evolving sector. Get ahead of the curve, and you can turn these changes into an opportunity to strengthen staff engagement and institutional resilience.

Key dates for your diary

18 February 2026

• Simplifying industrial action notices and ballot papers  
• Increasing mandate period and reducing required notice period for industrial action
• Protections against dismissal and detriment for taking industrial action   

6 April 2026 

• Repeal the 50% threshold for industrial action ballots to revert to simple majority voting 
• Whistleblowing protection for sexual harassment disclosures 
• Collective redundancy protective award increase from 90 days gross pay to 180 days  

1 October 2026 

• “All reasonable steps” to prevent sexual harassment and prevent third party harassment   
• Trade union statutory access rights    

1 January 2027 

• Six-month qualifying period for unfair dismissal and removal of compensation cap

During 2027 (to be confirmed) 

• Zero-hours and casual contract protections (guaranteed hours, notice, compensation 

*Some provisions are subject to further regulations or transitional arrangements. Check the latest government guidance for updates.

A version of this blog first appeared on Wonkhe.

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