Labour’s Employment Rights Act has now passed its final parliamentary stage and is expected to become law before Christmas.
Labour’s flagship workers’ rights legislation bill cleared its last obstacle after Conservative peer Lord Sharpe, shadow business and trade minister, withdrew a proposed amendment during the final round of parliamentary ping pong in the House of Lords. This removed the final block on the bill’s passage.
What The Bill covers
The legislation applies to England, Scotland and Wales, but does not extend to Northern Ireland. While many of the measures will require secondary legislation before they take effect, the direction of travel is now clear.
Key headline changes include:
- statutory sick pay and paternity leave available from day one of employment
- stronger protections for pregnant women and new mothers
- enhanced duties on employers to prevent sexual harassment
- new restrictions on fire and re-hire practices
Originally, the government proposed day-one unfair dismissal rights for all employees. However, following significant debate, this plan was dropped. Instead, enhanced protection against unfair dismissal will be introduced after six months’ service. This became the most contested element of the bill and was the main cause of months of deadlock between the two Houses.
Implementation will be phased
Although the bill will soon become law, most changes will be introduced gradually over the coming years.
- Immediately upon royal assent, the strikes minimum service levels act 2023 will be repealed.
- From April 2026, initial reforms are expected to come into force, including changes to statutory sick pay and certain parental leave provisions.
- By October 2026, further measures are anticipated, such as stronger obligations on employers to prevent sexual harassment and tighter controls on fire and re-hire practices.
- In January 2027, the new unfair dismissal protection with a reduced qualifying period of six months is scheduled to begin.
This phased approach reflects the scale of reform involved. There are still around 173 pieces of secondary legislation required before all elements of the employment rights act are fully implemented, many of which will involve consultation to assess their impact on employers and employees.
What employers should do now
During October and November, more than 60 people attended our seminars and webinars on the proposed changes. While some elements of the bill have evolved since those sessions, the legislation will now become law and preparation is essential.
Although many details are still being worked through, employers should not wait. Now is the time to understand what changes are coming, when they are likely to take effect, and how they will impact your organisation.
We will continue to share information while as the employment rights act progresses. There will undoubtedly be plenty of policies and procedures to review as we move through 2026 and beyond, and early preparation will put you in the strongest possible position.
How we can help
The scale and complexity of the employment rights act means many employers will need support navigating what comes next. With changes being introduced over several years, it can be difficult to keep track of what applies to your business and when.
We will support you at every stage by helping you understand the legislation, interpret how it affects your organisation, and plan ahead with confidence. This includes reviewing and updating contracts, policies and procedures, supporting managers with practical guidance, and ensuring your approach remains compliant as new regulations come into force.
We will also keep you informed as consultations take place and secondary legislation is published, translating legal developments into clear, practical advice. By working with you early, we can help reduce risk, avoid costly mistakes and ensure you are well prepared for the significant changes ahead.
If you would like to discuss what the employment rights act means for your business, or how to start preparing now, please get in touch with the team.
