The REC are formally responding to government consultations on a range of Employment Rights Act measures. 

One of the most important for recruiters is the consultation on Modernising the Agency Work Regulatory Framework. It focuses on umbrella company regulation and temporary labour market rules. 

The REC is also continuing to highlight the potential significant impact of guaranteed hours provisions on the labour market. 

Other Employment Rights Act consultations underway include:  

• Flexible working  
• Fire and rehire 
• Union access and e-balloting practices 
• Tipping

We expect the government to make further decisions on how the Act will be implemented, including modernising the Agency Work Regulatory Framework, later in 2026. Secondary legislation on this, and other changes, will be introduced throughout 2026 and 2027.

Next steps 

January 2026: The government published its implementation roadmap for the Employment Rights Act, with phased commencement through 2026 and 2027.  

The REC continued engaging with the government, highlighting potential risks for agency supply chains and the need for clear, explicit guidance.

February 2026: Draft regulations were introduced to Parliament, covering regular hours requests, protective awards and industrial action notice periods. 

REC continued to stress the need for proportionate rules, with a particular focus on ensuring that guaranteed hours provisions are applied appropriately to all workers.

April 2026: Statutory Sick Pay, paternity leave, unpaid parental leave, and the right to request flexible working all became day‑one rights. There were also reforms to Statutory Sick Pay, including the removal of the Lower Earnings Limit.

14 March 2025: Bill received First Reading in the House of Lords. 

As the Employment Rights Bill progressed through Parliament, it entered a prolonged period of parliamentary “ping-pong” between the Commons and the Lords. Throughout this stage, the REC worked closely with the Shadow Ministerial team to propose a series of amendments on behalf of its members. REC data and research were repeatedly cited during debates, underlining the organisation’s influence and credibility. 

To help bring the process to a conclusion, the REC played a leading role in tripartite discussions between policymakers, employers and other stakeholders. These efforts were instrumental in securing a six-month qualifying period for unfair dismissal in the final Bill, rather than making it a day-one right. 

18 December 2025: Bill received Royal Assent, becoming the Employment Rights Act, with many provisions to be implemented through secondary legislation.

• 3 March 2025: Business and Trade Committee published report.  
• 4 March 2025: Government published amendments and consultation responses. 
• 11–12 March 2025: Report Stage in the House of Commons.  
• 12 March 2025: Third Reading passed with 333 votes to 100.  
• 17 March 2025: Justin Madders MP blog for REC Members. 

  
Key changes:  

• Regular hours request extended to agency workers 
• Protective award period raised to 180 days 
• Industrial action notice to 10 days, mandate duration to 12 months 
• SSP for low earners at 80% or SSP rate  

Further consultation on e-balloting and redundancy framework  
Read REC press response here 

• 1 November 2024: Business and Trade Committee launched an inquiry into the Bill.  
• 26 Nov – 16 Jan 2025: Committee Stage in Public Bill Committee with 21 sittings.  
• 14 January 2025: REC CEO Neil Carberry warned of false self-employment at a Committee hearing.  
• 5 February 2025: REC held Parliamentary Reception. Speeches from Rt Hon Liam Byrne MP and Justin Madders MP. 

Making Work Pay: The Application of Zero Hours Contracts Measures to Agency Workers:
Opened: 21 October 2024 | Closed: 2 December 2024  

REC Position: Agency workers should be exempt to preserve the flexibility of the temporary labour market. If exemption is not granted, responsibility must sit with the correct parties in the supply chain to minimise disruption.  Read consultation response here  

Making Work Pay: Strengthening Statutory Sick Pay:
Opened: 21 October 2024 | Closed: 4 December 2024 

REC Position: The application of SSP to temporary workers must consider their irregular working patterns. Clear guidance is required to limit agency exposure to ongoing costs. Support should be made available to help businesses manage financial burdens.  Read final position here  

Other Consultations: Making Work Pay: Creating a Modern Framework for Industrial Relations and Making Work Pay: Collective Redundancy and Fire and Rehire were also launched.

REC did not respond but outlined positions:  

• Industrial Relations: Reforms should foster better workplace relations while balancing business needs.  

• Fire and Rehire: Clearer policies welcome, but measures must remain available as a last resort. 

28 October 2024: The Government launched four consultations on key provisions in the Bill, inviting views on:  

1. A new right to a guaranteed hours contract for zero or low-hours workers  

2. Collective redundancy consultation and ‘fire and rehire’ practices  

3. Trade union legislation  

4. Statutory Sick Pay (SSP)

• 10 October 2024: The Employment Rights Bill was introduced in the House of Commons and received its First Reading.  

• 21 October 2024: The Bill received its Second Reading in the House of Commons.  

• 23 October 2024: The House of Commons Public Bill Committee issued a call for written evidence from individuals and organisations with relevant expertise or interest in the Bill.