Skip to main content
Recrutiment & Employment Confederation
Topic

Employment Rights Act Hub

Topics


Stayed informed about the latest Employment Rights Act (ERA) updates

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


1. Day one rights are expanding. April 2026

Statutory Sick Pay, paternity leave, unpaid parental leave, and the right to request flexible working will all become day‑one rights from April 2026. 

2. Unfair dismissal rules are changing. Jan 2027

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.

3. Guaranteed hours and shift rights. 2027

Workers with regular working patterns will gain rights to guaranteed hours contracts, plus protections around notice of shifts and cancellation pay.

4. The new Fair Work Agency (FWA) launches April 2026.

The Fair Work Agency will merge the Employment Agency Standards Inspectorate, GLAA and  National Minimum Wage enforcement

What this means for recruiters
  • Stronger enforcement of agency worker regulations, minimum wage, and holiday pay.
  • Workplace inspections, access to records, and civil penalties of up to 200% for underpayment.
  • The FWA can bring tribunal claims on behalf of workers, a major shift with implications for labour suppliers and recruitment agencies.
  • A single point of contact for employer guidance and compliance queries.

5. Higher penalties for non‑compliance.

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

 

1. Update contracts and documentation. 

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

2. Review probation procedures. 

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

3. Provide guidance for clients. 

Provide up to date briefings to hiring managers on dismissal procedures, shift cancellation rules, and emerging ERA reforms to mitigate legal risk.

4. Stay informed through trusted guidance. 

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.

12-month legal timeline

 

ERA: Crib sheet

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



12-month legal timeline

Keep on top of the latest legal updates and what they mean for your recruitment business with the REC's 12-month legal timeline


Government Consultations

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.

Consultations
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

Secure your place on our upcoming events

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.