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Employment Rights Act 2025: Implementation timeline

With the enactment of the Employment Rights Act 2025, the next two years will bring significant employment law change affecting employers, recruiters and labour supply chains.

Implementation will take place in stages from 2025 onwards, introducing new worker protections, compliance duties and enforcement frameworks.

To help members navigate and plan for the new regulatory requirements under the Employment Rights Act, we have prepared a member-exclusive Employment Rights Act planner setting out all the changes and when they are scheduled to take effect.


Members Only

Employment Rights Act Planner

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Members log in to download your exclusive Employment Rights Act planner to view the full implementation timeline and prepare for upcoming legislative changes.


Overview

Key changes from 2026

The first phase of reforms begins in 2026 and introduces a number of immediate compliance and operational considerations for recruitment businesses and employers. These include:

  • Extended protection against dismissal related to industrial action
  • Joint and several liability for PAYE shortfalls involving umbrella companies (from April 2026)
  • SStatutory Sick Pay reforms, including removal of the earnings requirement for eligibility and eligibility from day one of employment
  • Day-one rights to paternity leave and unpaid parental leave
  • Creation of the Fair Work Agency, bringing together multiple enforcement functions
  • Extended whistleblowing protections, including disclosures relating to sexual harassment

Further measures later in 2026 include new duties to prevent harassment, strengthened protections in “fire and rehire” scenarios, and requirements to inform workers of their right to join a trade union.

Changes expected from 2027

A second phase of reforms is expected in 2027, introducing additional employment protections and regulatory changes, including:

  • Guaranteed hours contract rights for casual and agency workers on low hours
  • Expanded unfair dismissal provisions and compensation rules
  • Regulation of umbrella companies under the Employment Agencies Act
  • New rights for agency workers to compensation where shifts are cancelled at short notice
  • Enhanced protections during pregnancy, maternity and family leave
  • Expanded bereavement leave and updated flexible working requirements

Additional equality and pay transparency measures will be introduced through secondary legislation as further details are confirmed.