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.
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 a rundown of five things universities need to know now.
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.
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.
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.
Sexual harassment: 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.
“Fire and rehire”: 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.
If I were you
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.
If you are a university leader, now is a good time to make it part of your new year’s resolution to audit your casual contracts – zero-hours, fixed-term, and casual roles all need additional scrutiny to ensure they meet new legal minimums. It would also be a good time to review probation and dismissal policies and manager compliance, as the shorter qualifying period and uncapped compensation change the risk calculus.
Most institutions are in communication with their local unions, but now would be a good time to talk to your unions specifically about the changes, as early engagement can help manage expectations and smooth the path to compliance.
While many in England may have recently reviewed institutional harassment policies as part of recent regulatory changes from the Office for Students, it is important to review sexual harassment policies and ensure managers know what is changing, how they can ensure compliance and to keep an eye out for new regulations.
As much of the sector faces significant financial challenges, additional restructuring plans may be in play for the upcoming academic year. If this is the case, it is essential you review your plans in light of additional legislation around contract changes, particularly around “fire and rehire”. This is already somewhat of a legal minefield, but the constraints on employers will be far more stringent from October onwards.
And, if nothing else, you and your colleagues must keep good records. Documentation is your best defence if challenged.
Ultimately, the Employment Rights Act 2025 isn’t just another HR update and universities must not treat it as one. Instead, it marks 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 acton
- Protections against dismissal and detriment for taking industrial action
6 April 2026
- Whistleblowing protection for sexual harassment disclosures
- Collective redundancy protective award increase from 90 days gross pay to 180 days
- (Expected) Repeal of the 50% threshold for industrial action ballots to revert to simple majority voting
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 (exact date to be determined)
- 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.