The Employment Rights Act 2025 is the most significant shift in UK employment law in a generation, and for experienced professionals in health and social care, it changes the terms of employment in ways that are worth understanding before you accept your next role.
The Act became law in December 2025 and its reforms are rolling out in phases across 2026 and 2027. Whether you are actively looking for a new role right now or simply keeping an eye on the market, knowing what is changing (and what it means for you) puts you in a stronger position when it comes to evaluating opportunities on the job market.
Here is what you need to know.
Your rights against unfair dismissal now apply much sooner
The most significant change for anyone considering a move is the reduction of the unfair dismissal qualifying period from two years to just six months, effective 1 January 2027.
Under the current rules, an employer can dismiss you within your first two years of employment with limited legal exposure. That window is closing. From January 2027, after six months in a role you have the same legal protections against unfair dismissal as someone who has been with an organisation for a decade.
Critically, the statutory cap on unfair dismissal compensation is being removed entirely and there is no ceiling on what a tribunal can award.
What does this mean practically? It raises the bar for how responsible employers manage probation. Any organisation that takes this legislation seriously should be running structured, documented probation processes with formal reviews well before the six-month mark. If an employer cannot tell you clearly how your probation will be managed, what the review milestones are, and what “good” looks like in your first six months, that is worth noting in your assessment of them.
For registered managers and senior leaders specifically, this change also affects how you will need to manage your own new hires once you are in post – something worth factoring into how you think about the operational infrastructure and HR support you will inherit.
The rules around fire and rehire are tightening
From January 2027, dismissing employees and re-engaging them on inferior terms becomes automatically unfair dismissal in almost all circumstances. Employers will only be able to do this if they can demonstrate genuine financial necessity and even then, must follow a narrow prescribed process.
If you have previously experienced situations where terms were effectively changed under threat of dismissal, this reform closes that avenue, strengthening your position once in role.
Zero-hours and low-hours contract reform is coming in 2027
For the many health and social care professionals who have at some point worked on zero or low-hours arrangements, or who manage teams where this is common, the Act introduces a guaranteed-hours entitlement.
Once in force, any worker on zero or low hours whose actual average hours over a 12-week reference period exceed their contracted hours must be offered a guaranteed-hours contract reflecting their real working pattern. Workers can decline, but the offer must be made.
For senior candidates, this is most relevant in two ways. First, if you are evaluating roles at organisations that rely heavily on flexible workforce models, understanding how they are planning to adapt to this legislation tells you something about their operational maturity. Second, if your new role will involve workforce responsibility, this is a structural change you will need to build into your planning.
Day-one Statutory Sick Pay is already live
This one has already happened. From April 2026, the three-day waiting period for Statutory Sick Pay was removed. SSP is payable from day one of illness, and it has been extended to lower-paid workers who were previously below the earnings threshold.
If you are reviewing a new employer’s sick pay policy as part of your offer assessment, this is the baseline the law now sets.
The introduction of an Adult Social Care Negotiating Body
For those working in elderly care and adult social care, the government is establishing an Adult Social Care Negotiating Body, expected to be operational by October 2026. Its purpose is to negotiate fair pay agreements for the care workforce in England.
If fair pay agreements are reached and given legal force, they will set pay and conditions floors across the sector. The longer-term implications for compensation benchmarking, career progression, and the financial sustainability of providers are yet to be fully worked through but this is a signal that the government intends the sector’s pay landscape to shift.
Organisations that are already paying competitively and investing in workforce stability will be better positioned to absorb any mandated changes. Those that have persistently lagged on pay may face a harder adjustment. It is a reasonable question to ask a prospective employer how they are tracking and preparing for this.
What this means when you are evaluating an opportunity
These changes, taken together, are largely positive for candidates, particularly experienced professionals who take their employment rights seriously. But they are also a useful lens for assessing prospective employers.
Organisations that respond to this legislation by tightening their people practices such as structured onboarding, clear probation frameworks, competitive pay and stable working conditions are the ones already operating well. The Employment Rights Act is, in many ways, a codification of what good employment in health and social care should already look like.
When you are considering a move, it is reasonable to ask: how is this organisation managing the transition to the new legislative landscape? What does their probation process look like? How stable is the workforce? How are they thinking about pay benchmarking?
The answers will tell you a great deal about the quality of the employer you are considering joining.
This article is intended for informational purposes only and does not constitute legal advice. For guidance on your specific employment situation, you should seek independent legal advice.
Looking for your next senior role in health and social care?
Compass Associates works with experienced professionals across elderly care, adult residential services, children’s care, and healthcare to support career moves at registered manager level and above. If you would like a conversation about the current market or what to look for in your next employer, our team is here to help.