Free Employment Rights Act Stress Test

The ERA Stress Test For Employers

The Employment Rights Act 2025 (ERA) is the biggest change to UK Employment Law in a generation and it affects every employer, however large or small your company.

Employment contracts, staff handbooks and management policies drafted before 2025 are unlikely to reflect the new requirements, with further changes still to come through 2026 and 2027.

Our ERA Stress Test is a free, confidential review designed to give you clarity. Send us your key documents in confidence and our Employment Law specialists will conduct a complimentary compliance review, mapping your existing documentation against the ERA requirements. You will receive a targeted evaluation of your employment contracts, employee handbooks and management policies, presented as a clear traffic light report.

Request your free ERA Stress Test
ERA Stress Test Example
Core Financial and regulatory exposure Identified vulnerabilities
Pay and Leave Mechanics

Immediate Legal Breach

Atypical Work and Flexibility

Upcoming Statutory Deadline

 

Protection and Whistleblowing

Immediate Legal Breach

Dismissal and Restructuring

Compliant

What you’ll receive and why it matters

We focus specifically on the highest-risk areas introduced by the ERA for your peace of mind, to save you from future chaos. Your free ERA Stress Test includes:

  • A confidential review of your key documents by our team of Employment Solicitors, covering your employment contracts, staff handbook and management guidelines
  • A rapid gap analysis mapping your existing documents against the mandatory new ERA requirements
  • A clear traffic light report showing exactly where you are compliant, where and where you are already vulnerable
  • Documented assurance for your board or management team that your workforce strategy is legally sound, or a prioritised plan to put it right

There is no charge and no obligation. If your documents need updating, we will tell you what areas need changing and can carry out the work for you, usually for a fixed fee so you know the costs from the start.

Who is the ERA Stress Test for?

The ERA Stress Test is designed for business owners, directors, HR managers and anyone responsible for people in their organisation. It is particularly valuable if:

  • Your employment contracts or staff handbook were last reviewed before 2025
  • You do not have an in-house legal team and rely on template or off-the-shelf documents
  • You employ casual, zero-hours or flexible workers
  • Your board or management team wants documented assurance that the business is prepared for the ERA
  • You are planning recruitment, restructuring or dismissals and want to be confident your processes will stand up

However large or small your company, if you employ people the ERA affects you.

What is the Employment Rights Act?

The Employment Rights Act received Royal Assent in December 2025 and is being phased in over several years. Day-one rights to statutory sick pay, paternity leave and unpaid parental leave took effect in April 2026 and are already law. From October 2026 the duty to prevent sexual harassment rises to taking “all reasonable steps”, employers become liable for harassment of staff by third parties such as customers and clients, and tribunal time limits double from three to six months.

The most significant changes arrive on 1 January 2027, when the qualifying period for unfair dismissal falls from two years to six months and the cap on compensatory awards is removed entirely. Restrictions on fire and rehire practices take effect at the same time. Every one of these measures touches your contracts, handbooks, policies and day-to-day management decisions.

The cost of waiting: future chaos

The gap between what your documents say and what the law now requires is where the risk sits. For employers who wait, that gap can mean:

  • Uncapped tribunal awards. From January 2027 there is no ceiling on unfair dismissal compensation, so procedural failures involving senior or higher-paid staff become far more costly.
  • Earlier and more frequent claims. Employees will qualify for unfair dismissal protection after just six months’ service, and extended time limits give claimants twice as long to bring most claims.
  • Liability for harassment. Without a documented risk assessment, up-to-date policies and evidence of training, the new “all reasonable steps” duty is a difficult defence to run.
  • Confusion and grievances. Outdated sick pay wording, old qualifying periods and inconsistent procedures cause confusion for employees and create disputes before a tribunal is ever involved.

The ERA Stress Test shows you exactly where you stand so you can put things right before they become a problem.

How the ERA Stress Test works

  1. Send us your key documents in confidence. Typically your standard employment contracts, staff handbook and any management guidelines or HR policies you rely on.
  2. We conduct a rapid gap analysis. Our Employment Law specialists focus on the highest-risk areas introduced by the ERA and map your existing clauses against the mandatory new requirements.
  3. You receive your free traffic light report. A clear summary of where you stand across the core areas of vulnerability.

Your traffic light report explained

  • Red: immediate breach. Your current wording or process is already out of step with law that is in force now.
  • Amber: upcoming statutory deadline. Likely to be compliant today, but changes coming up will put you in breach unless the document is updated.
  • Green: compliant. No action needed in this area at present.

The report covers the core areas of ERA exposure, including pay and leave mechanics, atypical work and flexibility, protection and whistleblowing, and dismissal and restructuring.

The benefits of having your contracts and handbooks reviewed

Time and money spent getting your employment documents right now is an investment that pays for itself. A properly reviewed and updated set of contracts and handbooks will:

  • Reduce the risk of grievances and Employment Tribunal claims, saving your company time, money and management distraction in the long term
  • Give you a strong first line of defence if a claim is brought, as tribunals will look at your documents and whether you followed them
  • Give your team documented assurance that your workforce strategy is legally sound and ERA-ready
  • Support your managers with clear, consistent policies and procedures they can follow with confidence
  • Show your employees you are a caring employer, which supports morale, good conduct and staff retention
  • Keep your paperwork up to date and fit for purpose as each phase of the ERA takes effect

What happens after your report

The initial ERA Stress Test and traffic light report are completely free and there is no obligation to take matters further. If you would like our help, our team of Employment Solicitors can then draft and implement fully revised employment contracts, staff handbooks, policies and management processes, tailormade to your organisation and aligned with the new legislation, prioritised by the risk levels identified in your report.

Where possible we will offer a fixed fee, so you will know what the costs are from the start. You can read more about our wider work in this area on our employment contracts and handbooks page.

Why Phillips Law?

Our Employment Law Team is supervised by Sarah Filsell, Sarah has a wealth of experience in contentious and non-contentious employment work. She has a background in Management Accounts and completed a Law Degree with the Open University and graduated with First Class Honours. Sarah then went on to complete the Legal Practice Course as part of the Master of Laws at the University of Law and graduated with Distinction. Sarah qualified in July 2020 after completing an employment law focussed training contract alongside seats in family law and private client.

The team reviewing your documents is the same team that defends employers when things go wrong, so we know which clauses tribunals test and where claims succeed. We aim to keep legal jargon to a minimum and give you clear, straightforward advice you can act on.

ERA Stress Test FAQs
Request your free ERA Stress Test

Our Employment Solicitors are on hand to provide expert advice and assist you wherever you are based. For a friendly, no-obligation initial discussion, please call us on 01256 854658 (Sarah). Alternatively, you can email [email protected], or fill in the form below to request your free ERA Stress Test.

Our offices are based in Basingstoke and we assist clients across the country.

Request your free ERA Stress Test

Request your free ERA Stress Test