The Employment Rights Act 2025: are your line managers match-fit?

HR and in-house lawyers have long been bracing themselves for the impact that the newly minted Employment Rights Act 2025 will have on their organisations – and there’s no shortage of information on how these teams can prepare - Employment Rights Act hubs are springing up on law firm websites (including our own (!) Employment Rights Act - Burges Salmon) and updates and briefings abound. 

But far less attention has been given to how the reforms will affect the remit of the line manager and yet their role in reducing the legal risk the ERA introduces will be critical. 

Take, for example, one of the big-ticket changes: the reduction in the unfair dismissal qualifying period from two years to six months, and the removal of the compensation cap. Whilst employers were relieved that this didn’t become a day‑one right, six months is still a razor‑thin window in which to evaluate whether a new hire is right for the role. This means your line managers will need to be reviewing performance right from the off. Worth remembering too is that the reduction in qualifying period is set to be introduced from 1 January 2027 and is expected to be brought in so that those employees who have six months' service at that point will be protected - in other words, a new recruit joining in July 2026 who is dismissed 6 months later will be able to claim unfair dismissal. 

With this in mind, here are my top areas of focus for line managers in 2026:

Get your recruitment right 

Let’s start at the very beginning (Julie Andrews would approve…). If your line managers play any part in recruitment, a review of their role in the process can avoid – or at least reduce new risks posed as a result of the unfair dismissal changes.

Make sure your line managers understand that poor decisions made in haste, or out of desperation to fill a role, may become much more costly. Six months is not long to test performance and behaviours, so making better hiring decisions in the first place becomes even more important.

Refresher training for hiring managers so they are confident of their role in the recruitment process will be a smart investment for 2026. 

Establish or revisit protocols for managing new starters

Let’s be honest – whilst most line managers would agree that proactive performance management during the probationary period is essential, in practice, it's often inconsistent.

The ERA will demand more rigour.

With a six‑month qualifying period for unfair dismissal and no compensation cap, managers will need to evaluate performance early and often and be confident in making a retain/dismiss decision in good time before the six months is up.

This means:

• regular performance reviews from early on 

• clear expectations set from day one

• calendar reminders for key decision dates

• ensuring managers understand the implications of allowing an underperformer to drift past the six‑month mark

If more time is needed to assess suitability, you can, of course, continue the employment beyond six months, but any dismissal thereafter will require a fair reason and a fair process.

It’s not just unfair dismissal changes that line managers need to be aware of - a host of other reforms will all impact on the day-today management of your people. 

Strengthen protections against harassment

Since October 2024, employers have had a proactive duty to take reasonable steps to prevent sexual harassment at work. The ERA introduces additional protections for workers in relation to harassment which your line managers need to be aware of. From October 2026, employers will be liable, in an employment tribunal, if an employee is harassed by a third party (in relation to any protected characteristic), unless the employer took all reasonable steps to prevent it. “Third party” is wide-ranging and includes customers, clients, site visitors and members of the public

Line managers must be able to spot and let you know where third-party interactions might create potential risk for their line reports and teams. From there, you, together with the line manager, can identify and implement all reasonable steps to prevent the risk of harassment from occurring.   

Take a proactive approach to absence management

SSP is changing in April meaning an employee will be entitled to SSP from day one of their absence rather than day four. In addition, employees earning below the lower earnings limit will also qualify for SSP (albeit a lower rate of pay may apply). 

For employers who don’t currently enhance SSP this represents a big change, and the financial implications may be significant. With some employers also anticipating a potential increase in absence rates, now is the time to encourage managers to:

• proactively monitor attendance

• conduct meaningful return‑to‑work interviews

• identify absence patterns at an earlier stage

• understand when and how to escalate concerns

Understand new family leave entitlements

The ERA also introduces extensions to certain family leave rights – paternity leave (but not pay) will be a day one right as will the entitlement to take unpaid parental leave. 

Make sure your line managers are aware of these changes (which are effective from April) and any other consequent changes you may make to your family leave policies so they know how to respond to requests for the leave and can signpost employees who need guidance.

Looking ahead…

These are the key areas for line manager focus over the next 12 months – but this is only the beginning. Further reforms landing in 2027 which will be relevant for line managers include:

• new rights to bereavement leave

• changes to flexible working; and

• enhanced protection from dismissal for pregnant women and new mothers. 

I’ll cover these in another blog closer to the time.

We have been advising employers of all sizes and across a range of sectors about how they can plan for and comply with the new ERA reforms. If we can help your organisation, please do get in touch. 

In the meantime, to find out more about the ERA reforms visit the Burges Salmon: Employment Rights Act hub.