Described by the Government as “the biggest upgrade in workers’ rights in a generation”, the Employment Rights Acts introduces wide-ranging reforms to the UK’s employment framework and resets the balance of rights and responsibilities between employers and employees.

Introduced within the first 100 days of Sir Keir Starmer’s Labour Government, the Bill formed a central pillar of Labour’s 2024 General Election manifesto and was closely associated with then-Deputy Prime Minister, Angela Rayner. Following a lengthy, and often contentious, passage through Parliament – with multiple rounds of legislative “ping pong” – the Act received Royal Assent on 18 December 2025.

Although a late government U-turn saw commitments on unfair dismissal watered down, the overall direction of travel for the reforms remains clear: a broad expansion of employment rights with important implications for businesses across all sectors.

Consultation & implementation

A key criticism of the Act is the breadth of delegated powers it contains, with many of the substantive details to be set out in secondary legislation. While this limits parliamentary scrutiny of certain measures, the Government has committed to publicly consulting on more than 20 areas of the Act. These consultations are ongoing and provide an opportunity for businesses of all types to share views and expertise on how policies should work in practice.

Implementation of the reforms will take place in stages, providing time for consultation to take place and for employers to prepare.

· Immediate measures following Royal Assent focused on industrial action protections.

· April 2026 will see the introduction of Day 1 paternity leave, unpaid parental leave and reforms to Statutory Sick Pay, alongside the establishment of the new Fair Work Agency.

· October 2026 is expected to bring reforms to “fire and rehire” practices and tipping law, as well as a new duty for employers to inform workers of their right to join a trade union and strengthened union access rights.

· By 2027, the final measures will come into force. This will include mandatory gender pay gap and menopause action plans for large employers, enhanced protections for pregnant workers, regulation of umbrella companies, strengthened flexible working and bereavement leave rights, reforms to zero-hours contracts (including agency workers), and unfair dismissal protections applying from 6 months.

In social care and education, the Act goes further. The Adult Social Care Negotiating Body and the School Support Staff Negotiating Body (SSSNB) will be established through secondary legislation in 2026 and will negotiate pay and conditions for workers in their respective sectors. The first ‘fair pay agreement’ for adult social care will come into force in 2028, meanwhile the first outcomes from the re-instated SSSNB are anticipated from 2027–28 at the earliest.

Could employment rights change under a new government?

Parliamentary opposition to the legislation has been significant and the future of certain elements of the Act may depend on the outcome of the next General Election.

Pulling to the left, the Green Party has argued that the legislation does not go far enough, particularly in relation to gig economy rights and zero-hours contracts.

The Liberal Democrats supported many of the Bill’s objectives but raised concerns about the potential impact on small and growing businesses. Lib Dem Peers were also instrumental in pushing the Government to revise its approach to unfair dismissal.

The Conservative Party has pledged to repeal what it describes as “job-destroying, anti-business” measures within the Act, while Reform UK has stated it would seek to repeal the legislation in full. However, with most provisions in force by 2027, wholesale repeal of the Act could prove complex and costly to the economy, as businesses will have already adapted to the new framework.

Preparing for change

For employers, the Employment Rights Act presents important challenges, opportunities and strategic considerations.

Organisations should now be assessing how these reforms will affect their workforce and considering where constructive engagement with policymakers (including through formal consultation and more informal conversations) can help ensure that your experience and sector insights are reflected in the final stages of policy development.

Whilst the Act has finished its journey in Parliament, MPs and Peers remain highly engaged on the issue. Employers of all sizes should therefore continue to raise key concerns and highlight opportunities to strengthen and improve the legislation.

For more information on how PLMR can support you to engage with the Employment Rights Act, please contact info@plmr.co.uk