
Employment Rights Act Hub
Stay informed with the latest updates from the REC’s campaigns team as we continue to stand up for our sector, ensuring that your interests are represented to the Government.
Government and campaigns

After months of parliamentary ping pong, the Labour Government’s plan to “make work pay” became law just before Christmas.
The Employment Rights Act represents the biggest change to employment law in a generation and is hugely important for recruiters and employment businesses. Throughout the process, the REC has worked to ensure members’ views were heard.
With the Act now on the statute book, attention has turned to implementation and to shaping how the legislation will work in practice through secondary legislation.
On Tuesday 3 February, the Government published a revised implementation timetable setting out when different parts of the Act are expected to come into force. There have been some minor adjustments to the overall schedule. For recruiters, the key message is that there are no changes to the areas of greatest importance to the sector, including agency work reforms. Changes will continue to be phased in across 2026 and 2027.
From April 2026:
From January 2027
During 2027
As set out in the revised timetable, the Government is launching a series of consultations to shape how the Employment Rights Act will operate in practice. While several consultations are relevant, the most important for recruiters is the agency work consultation, which will have a direct impact on the recruitment industry.
The agency work consultation focuses on two key areas. First, umbrella companies. It will consider which parts of the Conduct Regulations should apply and propose a working definition of what constitutes an umbrella company. Second, temporary labour market rules. The Government aims to reduce unnecessary burdens on business, and while guaranteed hours are not specifically included, the REC will highlight their potential impact in its response. This consultation will run for a full 12 weeks, allowing for meaningful engagement with members and careful evidence gathering.
Other consultations are also underway. Fire and rehire has been pushed back to 2027, reflecting wider changes linked to trade union rights. Flexible working will explore how requests should be handled in practice, with particular attention to impacts on employers and the temporary workforce. Tipping forms part of wider employment rights reforms, but is likely less relevant for most recruiters.
The REC will review each consultation as it is published and work closely with members to gather practical insight and evidence. We will submit detailed responses on behalf of the recruitment industry and keep members updated through the ERA Hub, newsletters and social media.
We will also provide clear guidance to help recruitment businesses prepare for implementation over the next two years. This is a fast-moving policy area, and the REC remains committed to ensuring the voice of recruiters is central as the new employment rights framework is developed.
Share this article