In a bid to bring the country’s employments rights legislation into the 21st century, the UK government has been meticulously developing the Employment Rights Act over the past couple of years. And this week, the rather revolutionary Act was officially given the royal seal of approval.
The long-awaited Act was developed in close collaboration with various business and trade unions to ensure that the legislation makes for a fairer system for workers. Over 15 million workers are expected to benefit from some of the significant changes being made, including those in the most low-paid and insecure jobs. Having received Royal Assent, the Employment Rights Act can now start to be rolled out across the country, and the changes will be gradually introduced over the next two years.
What changes are being made under the new Employment Rights Act and when?
April 2026
From April 2026, ‘day-one rights’ will come into effect. This means that workers will be entitled to paternity leave and unpaid parental leave from their first day of employment. From April, Statutory Sick Pay will be made available from day one of an employee’s absence, thus ending the requirement to be ill for three days before being entitled to any sick pay. The lower earnings limit will also be removed in regards to sick pay. April will also see the Fair Work Agency established, the maximum ‘protective award’ increase from 90 days’ pay to 180 days’ pay, sexual harassment become a qualifying disclosure within whistleblowing law, and the statutory trade union recognition process be simplified.
October 2026
From October 2026, the Employment Rights Act will see the end of ‘fire and rehire’ and ‘fire and replace’ practises. Employer liability for third-party harassment (e.g. customers or clients) will be introduced, and employers will need to take ‘all reasonable steps’ to prevent sexual harassment (as opposed to the current ‘reasonable steps’). From October 2026, employers will have to consult with their workers before creating a tipping policy, and update the policy every three years. And October will also see the tribunal limitation period be extended from three months to six months, new measures for public sector outsourcing come into effect, a new negotiating body for adult social care introduced, and a package of Trade Union measures being put into place.
2027 and beyond
In 2027, protection from unfair dismissal will become a right after 6 months of being employed (currently, employers have to have worked somewhere for 2 years before being to claim unfair dismissal). 2027 will also see the end of ‘exploitative’ zero hour contracts, an amendment to flexible working laws, and family-friendly rights enhanced (including the day-one right to statutory bereavement leave and improved protection for pregnant women and new mothers). From 2027, workers will also have the right to be paid if a shift is cancelled, rescheduled, or cut short by an employer. And there will be new rules put into place regarding collective redundancies across an organisation.
Secretary of State for Business and Trade, Peter Kyle, said: “We believe this change is a vital part of creating and maintaining good jobs and fair pay. This government is championing responsible businesses, driving fair competition, and creating a future where hardworking people enjoy real security and opportunity.”
You can find out more about the Employment Rights Act and its upcoming rollout here.