How to update your employment contracts for ERA 2025
Employment contracts written before 2024 are unlikely to be compliant with the Employment Rights Act 2025. The changes are substantive: a shorter unfair dismissal qualifying period (down from two years to six months for dismissals on or after 1 January 2027), day one flexible working requests, the right to predictable hours, updated SSP provisions, neonatal care leave, and strengthened protections for zero-hours workers all affect what your contracts should say and what your employment policies need to cover. There is no day-one unfair dismissal right and no statutory probationary period; both proposals were dropped before the Act passed.
Start with your standard employment contract. The most urgent updates relate to probationary clauses. A probationary clause that implies the employer can dismiss without process during probation will look out of step as the qualifying period shortens. It is worth updating to reflect that the employer will follow a fair procedure before any probationary dismissal — and that the ACAS Code applies regardless of service length. Probation remains a contractual concept, so the clause should set its own length and review points.
Flexible working clauses need reviewing. If your contract states that flexible working requests can only be made after 26 weeks of service, that is now incorrect. The clause should be updated to reflect the day one right, the two-requests-per-year allowance, and the consultation requirement before refusal.
Zero-hours contracts need new clauses covering the right to request a contract reflecting a regular working pattern after 12 weeks. The clause should set out the process for making such a request, the timeframe for responding, and the grounds on which the employer may decline.
Sick pay clauses need checking. If your contract refers to statutory sick pay starting from the fourth qualifying day, that is now wrong. Update the reference to reflect that SSP is payable from the first qualifying day.
Your written statement of particulars — the section 1 statement — must also be updated. Employees must be given a written statement on or before their first day. ERA 2025 tightens what that statement must contain. Review your template against the updated list of required particulars.
Beyond the contract itself, your HR policy suite needs attention. The policies most likely to need updating under ERA 2025 are:
— Disciplinary and dismissal policy: must reflect that the ACAS Code applies regardless of service length
— Flexible working policy: must reflect day one rights and the new two-request allowance
— Sickness absence policy: must update the SSP waiting day references
— Parental leave policy: must add neonatal care leave
— Zero-hours and variable hours policy: must add the regular hours request process
— Anti-harassment policy: must extend explicitly to third-party harassment prevention
— Tipping policy (where applicable): must meet the new tips legislation requirements
Contracts and policies should be reviewed by an employment lawyer familiar with ERA 2025, particularly where your business has non-standard arrangements, TUPE-transferred employees, or complex working patterns.
See our ERA 2025 compliance checklist for HR teams for a structured audit process, and our guide on probation periods after ERA 2025 for specific probationary clause wording.
Mellow provides ERA 2025-compliant contract templates and policy documents, updated as legislation changes. [Start a free trial →](https://mellowhr.com/register)