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Employment Rights Act 2025 and What Cleaning Companies Need to Know

Lærke Cecilie Ditlevsen
Lærke Cecilie Ditlevsen
How the Employment Rights Act 2025 Affects Cleaning Companies
7:07

The Employment Rights Act 2025 is bringing changes that directly affect how cleaning companies manage staff, schedules, and day-to-day operations. With new rules around unfair dismissal, sick pay, and zero hour contracts, getting things wrong can quickly lead to added costs, compliance issues, or problems with staff.

For businesses that rely on shift work and last-minute cover, these changes will have a real impact on planning and workload. This guide explains what the new rules mean in practice, when they take effect, and what cleaning companies should do to stay in control and avoid unnecessary risk.

Summary

The Employment Rights Act 2025 is already changing how cleaning companies manage staff and schedules. Some rules are already live, with more coming throughout 2026 and in 2027

Key changes include:

  • Day-one sick pay
  • Earlier unfair dismissal protection (from Jan 2027)
  • Changes to zero hour contracts (expected 2027)

These updates increase the need for:

  • clear contracts
  • accurate time tracking
  • consistent processes

The biggest risk is not the rules themselves, but poor documentation and informal ways of working. Taking action now helps reduce risk, stress, and unexpected costs


What Is the Employment Rights Act 2025?

The Employment Rights Act 2025 is a major update to UK employment law, strengthening worker protections and building on existing legislation like the Employment Rights Act 1996. It became law in December 2025 and introduces changes to key areas including unfair dismissal, statutory sick pay, zero hour contracts, and redundancy.

The aim is to improve job security and reduce insecure work across the UK. While some changes have already come into effect during 2026, others will be introduced gradually through 2026 and 2027.

For cleaning companies, this makes it important to understand both what applies now and what is coming next. Getting the right processes in place early helps avoid unnecessary risk and makes it easier to adapt as further changes take effect. Here’s a timeline of the relevant measures:

When the Employment Rights Act Changes Take Effect

Trade Union and Worker Representation Changes on 18th February 2026
  • Removes most of the Trade Union Act 2016, making rules simpler
  • Simplifies processes for industrial action ballots and notices
  • Removes the need for re-balloting every 10 years on union political funds
  • Strengthens protection for workers taking part in industrial action
  • Allows employees eligible for day-one paternity leave and unpaid parental leave to give notice to take it
Regulatory Fee Removal for Trade Unions on 1 April 2026
  • Trade unions and employer organisations will no longer have to pay a regulatory fee to the Certification Officer

Key Employment Rights Updates on 6 April 2026
  • Collective redundancy: the protective award has increased from 90 days’ pay to up to 180 days’ pay per employee.
  • Day-one rights: employees can now take paternity leave (up to 2 weeks) and unpaid parental leave (up to 18 weeks per child) from the start of employment
  • Whistleblowing: stronger legal protection, including clearer coverage of issues such as sexual harassment (no fixed number, keep general)
  • Bereaved partners: eligible employees can take up to 2 weeks of paternity leave in cases of loss
  • Statutory sick pay (SSP): now applies from day one of absence, with the previous 3-day waiting period removed and the Lower Earnings Limit removed, meaning more workers qualify
  • Gender equality and menopause: employers are encouraged to introduce action plans and follow guidance
  • Trade unions: recognition processes are being simplified
Fair Work Agency Introduction on 7 April 2026
  • Fair work agency established

Electronic Trade Union Balloting Changes in August 2026
  • Allows trade unions to use electronic and workplace voting for official ballots
Workplace Rights and Protections Updates in October 2026
  • Workplace harassment: employers must take clear steps to prevent sexual harassment
  • Third-party harassment: employers can be responsible for harassment from clients or others on site
  • Union rights: workers must be informed of their right to join a trade union
  • Union access: trade unions may have more access to workplaces
  • Industrial action: stronger protection for workers taking part
  • Procurement rules: changes may affect contracts, especially when working with public sector clients
Employment Tribunal Time Limit Changes (Expected from Late 2026)
  • Employment tribunals: the time limit to bring most claims is expected to increase from 3 months to 6 months, though the exact start date has not yet been confirmed (not before October 2026)

Unfair Dismissal and Fire and Rehire Changes from January 2027
  • Unfair dismissal: employees will qualify after 6 months instead of 2 years (from January 2027), and compensation limits may be removed
  • Fire and rehire: stronger restrictions to prevent employers from forcing contract changes unfairly
Further Employment Rights Changes Rolling Out During 2027
  • Gender equality and menopause: employers must create action plans and provide support for employees
  • Pregnancy protection: stronger protection against dismissal for pregnant employees and new mothers
  • Workplace harassment: clearer rules on what employers must do to prevent sexual harassment
  • Blacklisting: stronger protections to prevent workers being unfairly excluded from jobs
  • Umbrella companies: increased regulation affecting how some staff are employed
  • Redundancy: changes to when collective consultation rules apply
  • Flexible working: employees will have stronger rights to request flexible working
  • Bereavement leave: expanded rights, including after pregnancy loss
  • Guaranteed hours: workers may have the right to fixed hours and compensation for short-notice changes
  • Union processes: electronic and workplace voting allowed for recognition ballots

 

Image of sick cleaning staff_AI generated

This image was generated with the AI tool ChatGPT

 

Key Changes Explained: Unfair Dismissal, Sick Pay and Zero Hour Contracts

Although many of the changes coming into effect during 2026 and 2027 may affect your cleaning company, a few stand out as the most important. Here’s what to focus on.

Unfair dismissal

Employees will gain protection against unfair dismissal much earlier, as the qualifying period is reduced to six months from January 2027. This means employers need to follow clearer and more consistent procedures when managing dismissals from an earlier stage. If processes are not properly documented or handled correctly, the risk of employment tribunal claims increases.

Statutory sick pay

Statutory sick pay is to apply from day one of absence, rather than after a waiting period, with more employees becoming eligible. These changes came into effect the 6 April 2026. For cleaning companies, this means higher costs and a greater need to track absence and pay accurately, even for short-term or part-time staff.

Zero hour contracts

Changes to zero hour contracts are expected to be introduced in 2027. Rather than banning these contracts, workers may gain the right to request guaranteed hours based on their regular working patterns. Employers may also need to compensate staff for cancelled or short-notice shifts, reducing flexibility in last-minute scheduling and requiring more structured planning.

Understanding these changes is one thing. Putting the right processes in place is what makes the difference.

What Cleaning Companies Should Do, and Avoid

What to do

  • Review and update contracts, especially for part-time and zero hour staff
  • Track actual working hours to prepare for guaranteed hours rules
  • Document all dismissal and disciplinary processes clearly
  • Prepare for changes in sick pay eligibility and tracking
  • Train managers and supervisors on the new requirements

What to avoid

  • Relying on verbal agreements or outdated contracts
  • Cancelling shifts without a clear process or documentation
  • Handling dismissals informally or inconsistently
  • Ignoring early signs of compliance gaps
  • Waiting too long to prepare before changes take effect

Why the Employment Rights Act Matters for Cleaning Companies

Cleaning businesses rely heavily on flexible staffing, part-time roles, and shift-based work. Because of this, even small changes in employment law can have a direct impact on daily operations.

These changes affect how you:

  • plan schedules and arrange cover
  • manage payroll and control costs
  • handle hiring, performance, and dismissal

They also increase the risk in areas where processes are often less structured, such as:

  • informal agreements
  • missing or unclear documentation
  • inconsistent ways of working across sites

At the same time, there is more pressure to:

  • stay compliant with changing rules
  • build stable and reliable teams
  • reduce admin errors and manual work

Beyond the new legal changes coming into effect in 2026 and 2027, these updates also reflect broader shifts in the cleaning industry. For a wider perspective, you can read our guide on 2026 UK Cleaning Industry Trends: What You Need to Know

How CleanManager Supports Compliance and Daily Operations

As requirements become more detailed, staying compliant is less about knowing the rules and more about having clear, consistent processes in place.

For many cleaning companies, challenges often come from a lack of overview. Schedules are spread across different tools, working hours are tracked manually, and documentation is not always easy to find when needed. This makes it harder to stay in control, especially when dealing with sick leave, shift changes, or staff issues.

CleanManager brings these elements together in one place:

  • A clear overview of staff schedules, working hours, and completed tasks, making it easier to plan ahead and avoid last-minute changes
  • Time tracking that supports accurate payroll and helps reduce disagreements about hours worked
  • Built-in documentation that creates a clear record of what has been done and when

If you’re curious how this could work in your own setup, you can book a quick 15-minute call with Simon.

Turning Legal Changes into Practical Action

The Employment Rights Act 2025 is not just a legal update. It is already starting to change how cleaning companies manage staff, schedules, and daily operations.

With some changes now in effect and others being introduced over the coming months, the impact is no longer something to prepare for later. For an industry built on flexible staffing and shift-based work, these updates are already influencing how businesses plan, document, and manage their teams.

Taking action early still makes a clear difference. It helps reduce risk, avoid unnecessary stress, and keep costs under control as further changes are rolled out.

Businesses that continue to build structure now will be in a much stronger position as the remaining updates take effect.

FAQ: The Employment Rights Act 2025

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 is a major update to UK employment law. It strengthens worker protections and introduces changes to areas such as unfair dismissal, statutory sick pay, zero hour contracts, and redundancy.

When does the Employment Rights Act 2025 come into effect?

The Act became law in December 2025, with changes being introduced in stages. Some updates took effect from April 2026, while others will roll out through 2026 and 2027.

How does the Employment Rights Act affect unfair dismissal?

The qualifying period for unfair dismissal is expected to be reduced from 2 years to 6 months from January 2027. This means employees gain protection earlier, and employers must follow clear and consistent dismissal processes.

What changes are being made to zero hour contracts in the UK?

Workers may gain the right to request guaranteed hours based on their regular working patterns. Employers may also need to provide compensation for cancelled or short-notice shifts. These changes are expected to be introduced during 2027.

When does statutory sick pay start under the new rules?

Statutory sick pay is now expected to apply from day one of absence, rather than after a waiting period. These changes came into effect from 6 April 2026.

Who is eligible for statutory sick pay in the UK?

More workers are expected to qualify for statutory sick pay, as the Lower Earnings Limit has been removed. This means even lower-paid or part-time staff may now be eligible.

What is redundancy under the Employment Rights Act?

Redundancy occurs when a role is no longer needed. Under the new rules, compensation in collective redundancy cases has increased, with awards reaching up to 180 days’ pay per employee.



What is ‘fire and rehire’ and is it still allowed?

“Fire and rehire” is when an employer dismisses staff and rehires them under new terms. The Act introduces stronger restrictions, making it harder for employers to use this approach unfairly.



What are the main risks for employers under the Employment Rights Act 2025?

The main risks include higher tribunal exposure, increased costs, and stricter compliance requirements. Informal processes, poor documentation, and inconsistent handling of staff issues can increase these risks.



How will the Employment Rights Act affect cleaning companies?

Cleaning companies will be affected through changes to staff scheduling, sick pay, contracts, and dismissal processes. Because the industry relies on flexible and shift-based work, these changes will directly impact daily operations.

 

 

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