Employment Rights Bill (ERB) Crib Sheet

What is the Bill?

• The ERB is Labour’s plan to improve workers’ rights and make work fairer. It includes:
• Day-one rights to sick pay (SSP), parental leave, and protection from unfair dismissal
• A ban on zero-hour contracts and a right to request predictable hours
• Regulation of umbrella companies
• Stronger union rights
• A new Fair Work Agency to enforce rights

What Recruiters Need to Know

• Zero-hours: Workers can ask for stable hours after 12 weeks
• Sick pay: Starts from day one
• Unfair dismissal: Applies from day one; probation must be reviewed
• Enforcement: Fair Work Agency takes over (less temp-sector experience)
• Umbrella companies: Will now be regulated - REC sees this as a major win!
• Other Policies: Updates needed on rules around harassment, whistleblowing, redundancy, and union access

Concerns for Recruiters

• Less flexibility and more red tape on zero-hours
• Day one rights leading to extra costs, SSP is particularly of concern to agencies
• Possible liabilities for last-minute shift cancellations
• Limited flexibility to make contract changes outside of insolvency

Key Dates

• Sept 2025: Bill returns to Commons
• Autumn 2025 (September/October): Likely Royal Assent
• Late 2025: Consultations on secondary legislation, looking at detailed rules
• April 2026: Sick pay and parental leave changes, Fair Work Agency launches
• Oct 2026: Fire-and-rehire ban starts
• 2027: Implementation of more reforms, including umbrella rules and menopause and gender pay measures

Why Secondary Legislation Matters

Many details will be set through secondary legislation. This is key to how the rules work in real life. Consultations this autumn will focus on sick pay, umbrella firms, unfair dismissal, and flexible working.

What the REC is doing to support members

• Lobbying on key issues like guaranteed hours and sick pay
• Taking part in consultations to shape workable rules
• Keep members informed with guidance and webinars
• Offering legal and practical support to members

Support for members

Find out more on the ERB Hub: www.rec.uk.com/our-view/topics/government-hub

Members can get in touch with the campaigns team on campaigns@rec.uk.com