Employment Rights Act (ERA) Crib Sheet

What is the Employment Rights Act?

The Employment Rights Act (ERA) is the Labour Government’s main reform of employment law under its “Make Work Pay” agenda. It aims to strengthen worker protections and change how employment rights are enforced. The Act became law in December 2025. The changes will not all start at once. They will be introduced gradually between 2026 and 2027.

What recruiters need to know about the Act?

• ERA bans “fire and rehire” practices.
• New day-one rights are introduced, including access to Statutory Sick Pay (SSP) and parental leave.
• Workers will also gain the right to request predictable or guaranteed hours after 12 weeks.
• The qualifying period for unfair dismissal protection will fall to six months.
• The Act brings umbrella companies into regulation, strengthens trade union recognition rights, and updates rules on harassment, whistleblowing and redundancy.
• A new enforcement body, the Fair Work Agency, will oversee workplace rights.
• Many details will be determined through secondary legislation. Several consultations have already launched, and more are expected, including one on guaranteed hours. There will not be a consultation on the SSP changes.

Implementation timeline

From April 2026

• Collective redundancy protective awards doubled
• Day-one rights for paternity leave and unpaid parental leave
• Stronger whistleblowing protections
• Bereaved partners’ paternity leave extended
• SSP reforms (removal of waiting days and lower earnings limit)
• Fair Work Agency established

From January 2027

• Unfair dismissal qualifying period reduced to six months
• Compensatory awards uncapped
• Fire and rehire protections introduced

During 2027

• Mandatory gender equality and menopause action plans
• Stronger protections for pregnant women and new mothers
• New bereavement leave (including pregnancy loss)
• Flexible working reforms

REC position

The REC supports fairer work and stronger worker protections, but reforms must maintain the flexibility of the UK labour market. If poorly implemented, the changes could increase costs, reduce flexibility, and limit opportunities for people who rely on temporary work. The REC secured an important change so that unfair dismissal protection will apply after six months rather than from day one. However, two key concerns remain. Statutory Sick Pay (SSP) may be difficult to apply to agency work, where assignments are short and earnings vary. Guaranteed hours proposals may also reduce flexibility, as the suggested 12-week reference period may not work well for seasonal or short-term roles.

What the REC has done

The REC has engaged closely with Government and Parliament, including meeting ministers and officials, influencing the timetable, securing consultations on agency work, submitting evidence and gathering member feedback. Members are updated through the ERA Hub, newsletters and REC social media, and through events and webinars to help businesses prepare.

Next steps

The REC will continue to engage with Government on SSP, guaranteed hours and other reforms, to secure workable outcomes for our industry, and help businesses prepare for the changes.

Key REC resources:

• 12-month legal timeline
• Employment Rights Act planner
• Employment Rights Act hub