Understanding the Employment Rights Act: 5 Critical Questions Every Business Owner Must Answer

Lou Matthews Founder, Culture Craft

Running a small business means juggling countless tasks every day. New laws and regulations often arrive unnoticed, buried under urgent emails and pressing deadlines.

The Employment Rights Act, 2025 (ERA) is one such law that many business owners have heard about but few have truly examined within their business. Ignoring it or assuming it’s already covered can leave your business vulnerable. This post will help you understand the ERA’s impact by guiding you through five essential questions every business owner should ask.

Do you know how your business classifies freelancers, contractors, or zero-hours workers?

Many small businesses work with freelancers, contractors, or staff on zero-hours contracts. It's a great way to get the talent you need, while ensuring cost-efficiency,.

The key question is whether you understand how the law views these relationships. It’s not about what your contract says but how the working reality would be assessed by a court or tribunal.

For example, a worker might be labelled a contractor on paper but treated like an employee in practice. This mismatch can lead to unexpected legal obligations and penalties. Are they free to choose when and how they work? Do they provide their own equipment? Or do you control their hours and tasks closely? These details matter. We help our clients review how their workers actually operate day-to-day.

Are all employees given a written statement of particulars on their first day?

The ERA requires that every employee receives a written statement of particulars on or before their first day of work. This document should outline key terms such as pay, hours, job duties, and holiday entitlement.

Some businesses delay this until after a probation period or skip it altogether. This leaves employees unclear about their rights and exposes the business to legal risk - tribunals tend to air on the side of the employee where ambiguity exists. Providing this statement promptly builds trust and ensures compliance. Consider whether what you have provided is clear to everyone, or whether it leaves the expectations open to interpretation.

When did you last review your employment policies?

Employment policies are not “set and forget.” Laws change, and your business evolves. If your policies date back to when you first started the business, they likely need updating.

Regular reviews help you spot gaps and adapt to new legal requirements. For instance, the ERA has specific rules about handling grievances and disciplinary procedures. Your policies should clearly explain how employees can raise concerns and how you will respond, beyond what is expected now.

Culture Craft clients can access an always up to date policy and contracts system, to remove the endless cycle of updates.

Do you have a clear process if a worker raises a concern about their rights?

If an employee or contractor raises a concern about their rights, your business needs a clear, practical response plan. This is not about what you hope to do but what your current policies actually say.

A good process includes:

• A confidential way for workers to raise issues

• A timeline for investigating concerns

• Clear communication about outcomes

• Protection against retaliation

  
  

Without this, disputes can escalate quickly, leading to costly claims or damage to your reputation. And it's not just about what is written down. What happens in practice matters more. Are your managers and senior team equipped to respond appropriately?

Are your policies prepared to handle third-party harassment?

The ERA covers harassment not only between colleagues but also from third parties such as clients, customers, or visitors. Many small businesses overlook this aspect.

Your policies should explain how you will respond if an employee faces harassment from outside the company. This includes steps to support the worker and address the behaviour of the third party. Ignoring this can leave your business exposed to claims and harm employee wellbeing, because liability for this now sits with the business.

Time is running out. The first changes in the Employment RIghts Act, 2025 happen on 6 April 2026, with changes landing for months and years ahead.

Employment law is not a one-time task. It requires ongoing attention and adjustment as your business grows and changes. Many businesses that face legal challenges aren't ones that don't care - but intent isn't what counts, impact is. Those that get caught out are too often the businesses that assumed their initial efforts were enough.

Taking the time now to answer these five questions honestly will help you build a stronger foundation. It will protect your business, support your workers, and give you peace of mind.

If you paused on any of these questions, consider reviewing your current practices. Small steps like updating contracts, reviewing policies, or setting clear procedures can make a big difference.

If the ERA has raised a question you'd rather not leave unanswered, let's talk.