What Talent Acquisition Leaders Need to Know
The Employment Rights Act 2025
The UK employment landscape is undergoing a period of significant reform. The Employment Rights Act 2025 introduces wide-ranging changes that will reshape how organisations attract, assess and retain talent.
For Talent Acquisition (TA) leaders, this is not simply a compliance exercise. It is a structural shift that places recruitment at the centre of organisational risk, culture and long-term performance.
With key provisions already in force and others being phased in through 2026 and into 2027, the time to act is now.
Catch up on key advice
Nighat Sahi of RSW Law recently took part in an online webinar designed specifically for Talent Acquisition and HR leaders navigating these changes.
The session explored the practical implications of the Employment Rights Act 2025, and in particular, it covered:
- The increased risks of poor or rushed hiring decisions
- The increased significance of probationary periods
- The impact of the expansion of day-one rights
- The risks of inaction including increased tribunal claims, non-compliant contracts and onboarding processes, reputational damage and a reduced ability to attract and retain high-quality candidates
- The opportunities for TA leaders to create a more strategic role
If your organisation is reviewing its hiring strategy, or simply wants to ensure it is ahead of the curve, you can view the recording of the webinar here:
Risk now begins before day one
The Act strengthens worker protections from the outset of employment, with some rights applying from day one and others, such as unfair dismissal protections, arising significantly earlier than under the previous regime.
The implication is clear: risk no longer begins during employment; it begins during recruitment.
Job adverts, candidate communications, selection processes and onboarding design all carry increased scrutiny. Poorly drafted role descriptions, inconsistent interview processes or unclear expectations can create both legal exposure and reputational risk.
Key implications for Talent Acquisition
A shorter window to get hiring right
The reduction of the unfair dismissal qualifying period, from two years to six months, places far greater emphasis on early-stage decision-making. This is a really important area with big implications.
Employers now have a significantly reduced timeframe to identify and address performance or conduct issues. As a result, the cost of a poor hiring decision has increased materially.
TA teams should now be planning for more rigorous selection processes, greater scrutiny of candidate suitability and an increased reliance on structured and evidence-based assessments. Speed remains important, but quality has become critical.
Elevated importance of probationary periods
Probationary periods will now also have greater significance, and TA leaders will have to work closely with HR and hiring managers to ensure:
- Clear expectations are set from the outset
- Performance is assessed consistently and fairly
- Managers are equipped to make timely and well-documented decisions
“Day one” rights as a strategic opportunity
The expansion of day-one rights, including statutory sick pay and flexible working requests, presents both an obligation and an opportunity.
Forward-thinking organisations are already reframing these rights as part of their employee value proposition. Used effectively, they can enhance employer brand, broaden access to more diverse talent pools and improve offer acceptance rates
In a competitive labour market, compliance can therefore become a differentiator.
Zero hours contracts
One of the headline reforms being introduced is the proposed Right to Guaranteed Hours, expected to take effect in 2027. Under the new framework, workers who regularly work consistent hours over a reference period (currently expected to be around 12 weeks, subject to consultation) must be offered a contract reflecting those regular working patterns. Importantly, workers will not be required to accept guaranteed hours if they prefer the flexibility of a zero-hour arrangement.
The legislation also introduces a requirement for employers to provide reasonable notice of shifts. While the precise definition of “reasonable” is still being refined through government guidance, the aim is to reduce last-minute scheduling practices and prevent workers from effectively being placed on unpaid standby.
In addition, employers will be required to provide compensation where shifts are cancelled, moved or significantly reduced at short notice. The intention is to compensate workers for lost earnings and associated costs, such as childcare or travel expenses.
Increased scrutiny of contracts and processes
The Act also reinforces expectations around transparency, predictability and fairness. This has direct implications for recruitment documentation and onboarding processes.
TA teams should review:
- Employment contracts and offer letters
- Policies relating to shift patterns and notice periods
- Candidate communications and expectations
Outdated documentation or inconsistent practices create avoidable risk, particularly in sectors such as retail, hospitality and agency work.
A shift towards quality over speed
With increased litigation risk and rising employment costs, many organisations are reassessing their hiring strategies.
There is a clear shift towards more deliberate, higher-quality hiring, prioritising long-term fit over short-term resourcing needs.
This may result in longer hiring cycles, greater emphasis on cultural alignment and reduced reliance on temporary or contingent labour
For TA leaders, this is a moment to reset expectations and embed more sustainable hiring practices.
From recruitment to workforce strategy
The Employment Rights Act 2025 also creates an opportunity, arguably a necessity, for Talent Acquisition to step into a more strategic role.
TA is uniquely positioned at the intersection of market insight, candidate behaviour and organisational need. It is the only function that engages every external hire before employment begins. That position carries both responsibility and influence.
Leading TA teams are already:
- Auditing recruitment processes to ensure legal alignment
- Standardising interview frameworks and assessment criteria
- Using data and technology to improve consistency and reduce risk
- Aligning hiring strategies with broader workforce planning and growth objectives
In this context, Talent Acquisition is not simply filling vacancies. It is shaping workforce capability and mitigating risk at source.
The risks of inaction
Organisations that fail to adapt face a combination of legal, operational and commercial challenges, including:
- Increased tribunal claims linked to recruitment decisions
- Non-compliant contracts and onboarding processes
- Reputational damage in a more transparent labour market
- Reduced ability to attract and retain high-quality candidates
The legislative direction is clear: greater accountability, greater transparency and greater protection for workers.
However, handled well, these changes provide an opportunity to strengthen hiring practices, enhance employer brand and build more resilient workforces.
Handled poorly, they introduce avoidable risk and cost.
For Talent Acquisition leaders, the challenge is to move from reactive compliance to proactive ownership, embedding legal awareness into every stage of the hiring journey.
Get in touch
You can find more information about the Employment Rights Act here:
If you’d like to discuss any of the issues raised by this article, please get in touch.
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