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After months of amendments between the Commons and the House of Lords, the Employment Rights Bill has now become the Employment Rights Act following Royal Assent on 18th December 2025, formally adopting the UK Government’s “Make Work Pay” reforms.
While many measures are subject to phased commencement and secondary legislation, the final shape of the reforms is now clear. Here’s the latest on what’s confirmed, what has changed since July, and what remains under consultation.
What’s happened since July?
Since our original briefing:
- The Bill completed all Parliamentary stages.
- Amendments proposed in the House of Lords have now been resolved.
- The legislation secured Royal Assent on 18th December 2025.
- A formal implementation roadmap has been confirmed.
Some early provisions (unchanged from July) took effect immediately on Royal Assent, including:
- Repeal of most of the Trade Union Act 2016.
- Repeal of the Strikes (Minimum Service Levels) Act 2023.
- Simplified industrial action ballet requirements.
- Protection from dismissal for taking part in lawful industrial action.
Confirmed implementation roadmap and what it means for you
April 2026
All confirmed and unchanged:
- Statutory sick pay (SSP) reform – removal of both the Lower Earnings Limit and the 3-day waiting period for SSP.
- Day-one rights for paternity leave and unpaid parental leave.
- Whistleblowing protections strengthened.
- Fair Work Agency to be established - a new statutory body for guidance, oversight, and enforcement: will be established in April 2026.
- Simplified trade union recognition process: confirmed and unchanged.
- Electronic and workplace balloting for unions introduced.
- Doubling of protective award for collective redundancy breaches.
October 2026
- Fire and rehire regulations introduced - new statutory restrictions on using dismissal and re-engagement to change terms.
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- Clarified: The Act confirmed fire and rehire remains lawful only as a last resort, with explicit requirement to demonstrate genuine business necessity, meaningful consultation, and exploration of alternatives.
- Tribunal time limits extended – exact timeframe to be confirmed.
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- Clarified: Extension confirmed, with exact duration to be set via secondary legislation.
- Workplace harassment reforms – a legal duty to take “all reasonable steps” to prevent harassment, and protection from harassment by third parties (e.g. clients or customers).
- Fair Pay Agreement body for the adult social care sector.
- Two-tier procurement code for public sector contracts.
- Tipping law tightened to ensure fair distribution.
- Union access and awareness rights – a duty to inform workers of union rights, strengthening union right of access, and new rights for union representatives.
- Extended protections for workers taking industrial action.
2027
- Ban on “exploitative zero hours contracts” (ZHCs) - includes right to request predictable hours which will extend to agency workers.
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- Changed: The ban is confirmed and guaranteed hours introduced, but there is a statutory duty on the government to consult on reference periods.
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- New: Statutory consultation required before regulations can define temporary / seasonal needs and exemptions from guaranteed hours.
- Regulation of umbrella companies – a new framework to ensure transparency and fair practice.
- Day-one protection from unfair dismissal – applies from the start of employment, subject to probation rules.
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- Changed: day one protection removed – six month qualifying period applies universally, and the statutory cap on compensation has been removed.
- Bereavement leave entitlement extended to all workers.
- Flexible working to become a day-one right.
- Gender pay gap and menopause action plans – introduced on a voluntary basis in April 2026, to become standard.
- Defined standards for anti-harassment measures.
- New legal protections for pregnant workers.
- Reforms to the industrial relations framework.
- Updates to collective redundancy thresholds.
- Blacklisting protections and enforcement.
What’s still under consultation?
Precise dates are not published, but the duty to consult is now statutory.
- Guaranteed hours consultation: expected during 2026, ahead of 2027 commencement.
- Seasonal / temporary need definitions: consultation required before regulations are made.
- Umbrella company framework and enforcement measures: consultation alongside tax enforcement measures.
- Codes of Practice (fire and rehire, harassment): draft versions expected before October 2026.
What you can do now
With Royal Assent secured and the overall roadmap confirmed it’s time to shift from monitoring change to actively preparing for implementation. There’s still some key details to be confirmed, but here’s what you can be doing now:
- Review your current employment policies and practices, both internally and across temporary labour usage, in preparation for upcoming reforms.
- Assess workforce models, contracts, and HR processes in light of new and pending measures.
- Engage with supply partners, especially umbrella companies and staffing providers, to ensure compliance.
- Monitor secondary legislation and guidance as it’s released (we can help with this one!).
Let's navigate the change together
The Employment Rights Act represents the most significant update to UK employment law in a generation. While implementation is phased, clarity from Royal Assent allows businesses to start planning now. We’re ready to help you understand the changes, review your policies, and prepare for compliance. Let us know if you’d like support with:
- Sense checking your current employment contracts.
- Preparing policy updates.
- Exploring what the new rules might mean for your recruitment strategy.
We’re ready to help. Your operational success is our priority – let’s talk.
