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This page is your go‑to hub for the latest updates and information on the ERA, as well as what your business needs to do to prepare for the changes. It brings together the latest developments, REC resources and opportunities for members to engage with the policy agenda.
The latest on the ERA Key REC resources 12-month legal timeline
Legal advice events
Statutory Sick Pay, paternity leave, unpaid parental leave, and the right to request flexible working will all become day‑one rights from April 2026.
The qualifying period for unfair dismissal will drop from two years to six months, and the cap on unfair dismissal compensation will be removed. This increases risk and expands worker protections.
Workers with regular working patterns will gain rights to guaranteed hours contracts, plus protections around notice of shifts and cancellation pay.
The Fair Work Agency will merge the Employment Agency Standards Inspectorate, GLAA and National Minimum Wage enforcement
With strengthened enforcement under the FWA, penalties for issues such as underpayment, faulty record‑keeping, and other breaches will increase. Recruiters will face greater scrutiny over payroll accuracy, working time records, and agency worker protections working time records, and agency worker protections
Revise templates to reflect day one rights (2026), SSP changes (2026) and guaranteed hours obligations (2027) once the full regulations have been published.
Check out the REC's template documents
With unfair dismissal risks applying after six months, recruiters can support clients with developing robust early stage performance documentation and fair procedures.
Explore the REC's legal guides
Provide up to date briefings to hiring managers on dismissal procedures, shift cancellation rules, and emerging ERA reforms to mitigate legal risk.
Actively monitor upcoming ERA reforms and related regulatory changes using resources such as REC Legal news and views, REC 12-month legal timeline, as well as our REC campaigns updates.
Get your free Employment Rights Act Crib Sheet and stay ahead of the 2026 reforms with everything recruiters need to know about zero-hours changes, sick pay, and new enforcement rules
Keep on top of the latest legal updates and what they mean for your recruitment business with the REC's 12-month legal timeline
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.
28 October 2024: The Government launched four consultations on key provisions in the Bill, inviting views on:
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:
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.
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:
Further consultation on e-balloting and redundancy framework
Read REC press response here
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.
The Employment Rights Bill has now completed its parliamentary passage and received Royal Assent on 18 December, following extensive “ping-pong” between the Commons and Lords.
During its passage, the REC worked with other business groups to press the Government to rethink proposals that would have placed immediate burdens on employers. This led to a significant U-turn on unfair dismissal, which will not be a day-one right but will instead apply after six months’ service.
In December, the Employment Minister, Kate Dearden MP, met REC members at an in-person event at the REC offices to discuss what the Act will mean for businesses.
While the Act is now law, most reforms will be delivered through secondary legislation. The Government has confirmed a phased rollout across 2026 and 2027, with formal consultations on regulations and guidance expected from January 2026. The REC will respond in full and keep members updated, including via the ERB Hub.
Indicative delivery timetable
Early 2026: Initial changes covering trade unions, industrial action, sick pay and enforcement
Autumn 2026: Major workplace rights reforms, including day-one rights on sick pay
2027 onwards:
Unfair dismissal rights applying after six months
Guaranteed hours
Bereavement leave
Further flexible working reforms
With Royal Assent for the Employment Rights Bill expected in late November, the Government has published its roadmap for consultation and implementation, providing businesses and workers with much-needed clarity.
While the roadmap does not yet set out the full details of each policy, it is encouraging that the Government has listened to business voices, including the REC, and adopted a realistic, phased approach rather than rushing the legislation through. Maintaining these timelines will be crucial to allow full and meaningful consultation on the proposals.
The REC will continue to engage with members and Government to help shape these policies, advocating for clarity and detail as early as possible and pushing for adjustments where necessary. We will provide further updates on the Employment Rights Bill timeline as more information becomes available.
Key milestones from the Government’s plan are outlined below. These dates remain subject to change, and the REC will continue to advocate for implementation timelines that give businesses sufficient time to prepare.
After Royal Assent
April 2026:
October 2026:
2027 (dates to be confirmed based on further consultations):
Confirmed Consultations
The government will take a phased approach to consultations:
The following consultations have now been published:
We are awaiting consultations to launch on:
As we move further into Labour’s government, they have begun consulting on a number of topics regarding their manifesto commitments. This includes the Employment Rights Bill, changes to the NHS and the new Industrial Strategy. To help members keep abreast of the latest developments, all the consultations that have been released by the new government are collated below, with links to the government’s website for more information. As and when the REC has submitted our own response to each consultation, these will also be added to keep members informed of our work on these issues.
On the table below, consultations specifically related to the Employment Rights Bill and wider Plan to Make Work Pay are highlighted in italics.
| Consultation | Opening Date | Closing Date | REC response summary | Full REC response |
|---|---|---|---|---|
| Invest 2035: the UK’s modern industrial strategy | 14.10.24 | 24.11.24 | To be successful, any Industrial Strategy must go hand in hand with considering our workforce. It must make skills policy more suited to the needs of our economy, but also look beyond skills to consider production and job design, investment and infrastructure such as transport, childcare and the immigration system. | Final Submission |
| Change NHS | 21.10.24 | 02.12.24 | Agency work is crucial to a properly functioning NHS as it can play an important role in supporting the substantive workforce. NHS procurement needs to be reformed to allow for the cost-effective recruitment of agency staff, with the overreliance on bank or off-framework staff driving up costs to the taxpayer. Reviewing the current frameworks to allow effective on-framework supply will reduce staffing costs overall. | Final Submission |
| Making Work Pay: the application of zero hours contracts measures to agency workers | 21.10.24 | 02.12.24 | Agency workers should be exempt from the government's new proposals to limit the use of ZHCs to avoid unintentionally undermining the temporary labour market. People choose to work as agency workers for the flexibility these contracts can allow them, so way of working needs to be preserved. If a full exemption is not possible, then the government needs to ensure responsibilities and liabilities sit with the correct parties in the supply chain to minimise the impact of these changes. | Final Submission |
| Making Work Pay: Strengthening Statutory Sick Pay | 21.10.24 | 04.12.24 | The government needs to consider the impact of this on agencies, and how it can practically be applied to temporary workers who have irregular working patterns. This needs to be coupled with clarity on how agencies can limit exposure to ongoing sick pay for temporary workers to avoid the new SSP entitlement being exploited. Additionally, Government should make available provisions to help businesses cover these costs, especially at a time when cost pressures are biting hard. | Final Submission |
| Making Work Pay: creating a modern framework for industrial relations | 21.10.24 | 02.12.24 | Reforms to Trade Union rights should be welcomed provided they are designed to foster better workplace relations. There needs to be a balance struck between worker rights and ensuring businesses are able to manage their workforce planning. | REC has chosen not to submit a response to this consultation |
| Making Work Pay: collective redundancy and fire and rehire | 21.10.24 | 02.12.24 | Clearer policies and processes around fire and rehire and redundancy are important to workplace relations. However, it is important that these processes remain viable as last resort courses of action in order to ensure businesses are able to continue operation in worst case scenarios. | REC has chosen not to submit a response to this consultation |
Every year we host over 60 events for REC members and stakeholders, from our flagship annual conference and award ceremony, to legal seminars, business surgeries and member forums – all designed to give you the inside track.
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