The Institute of Chartered Accountants in England and Wales (ICAEW) have published guidance on the Employment Rights Act (ERA) 2025. It says that the Act represents the most significant shift in UK employment law in a generation. For charity finance leaders and trustees, understanding these reforms is vital for both budgetary planning and risk management. While the Act received Royal Assent in December 2025, its provisions are being introduced in stages through January 2027.
One of the most impactful changes for charities is the reduction of the qualifying period for unfair dismissal claims. From January 2027, the period drops from two years to just six months. Crucially, the statutory cap on compensation for unfair dismissal has been removed, meaning successful claims could result in significantly higher financial penalties for employers.
Read the guidance here