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After months of amendments between the Commons and the House of Lords, The Employment Rights Bill is now The Employment Rights Act following Royal Assent, marking the formal adoption of the UK Government’s flagship “Make Work Pay” reforms.
While many measures remain subject to phased commencement and secondary legislation, the final shape of the reforms is now clear. For organisations that rely on flexible temporary labour, the Act confirms several important changes from the initial positions set out in our Employment Rights Bill fact sheet issued in July, alongside areas where proposals are unchanged but implementation detail has been deferred.
Here's your update on exactly what’s changed, what hasn’t, and what is still subject to consultation.
What’s happened since July?
Since our original briefing:
- The Bill completed all Parliamentary stages.
- Amendments proposed in the House of Lords have now been resolved.
- The legislation secured Royal Assent on 18th December 2025.
- A formal implementation roadmap has been confirmed.
Some early provisions (unchanged from July) took effect immediately on Royal Assent, including:
- Repeal of most of the Trade Union Act 2016.
- Repeal of the Strikes (Minimum Service Levels) Act 2023.
- Simplified industrial action ballet requirements.
- Protection from dismissal for taking part in lawful industrial action.
Confirmed implementation roadmap and what it means for you
Statutory sick pay (SSP) reforms
July position:
Removes both the Lower Earnings Limit and the 3-day waiting period.
Final position:
Confirmed - unchanged
Impact:
Temporary workers will qualify for SSP from day one, regardless of earnings level. This may increase short-notice absence costs and will require tighter absence tracking.
Day one leave rights
July position:
Paternity leave and unpaid parental leave will apply from day one of employment.
Final position:
Confirmed - unchanged
Impact:
Assignments involving longer-term temporary placements will need to accommodate these entitlements from the outset.
Fair Work Agency launch
July position:
A new statutory body responsible for enforcement, guidance, and dispute resolution around fair employment standards.
Final position:
Confirmed - unchanged, the Fair Work Agency will be established in April 2026.
Impact:
Likely to play a key role in overseeing agency worker protections and monitoring compliance – expect increased scrutiny of agency worker treatment, pay practices, and compliance across labour supply chains.
Other unchanged measures coming into force in April 2026:
- Doubling of the maximum collective redundancy protective award.
- Expanded whistleblowing protections.
- Simplified trade union recognition process.
- Legalisation of electronic and workplace balloting.
Fire and rehire restrictions
July position:
New statutory code and regulations limiting use of fire-and-rehire tactics.
Final position:
Confirmed and clarified: fire and rehire remains lawful only as a last resort – employers must be able to demonstrate a genuine business necessity, a meaningful consultation, and exploration of reasonable alternatives.
Impact:
Changes to assignment terms or mass restructuring involving temp workers must follow strict consultation processes and justification.
Employment tribunal time limits extended
July position:
The window for submitting a claim will be extended (exact period TBC).
Final position:
Confirmed and clarified: exact duration to be set via secondary legislation.
Impact:
Employers must retain records for longer, maintain better internal documentation, and plan for longer dispute management timelines.
Harassment duties for employers
July position:
Employers will have a legal obligation to take “all reasonable steps” to prevent sexual harassment, and not to permit harassment of their employees by third parties.
Final position:
Confirmed - unchanged
Impact:
You'll need clear anti-harassment training, policies, and contractual provisions for client behaviour.
Other unchanged measures coming into force in October 2026:
- Fair Pay Agreement body for adult social care.
- Public sector procurement “two-tier code”.
- Tipping law reforms.
- Duty to inform workers of right to join a union.
- Strengthening unions’ right of access to workplaces.
- New rights for trade union reps.
- Extended protections for taking industrial action.
End of “exploitative zero hours contracts” and introduction of guaranteed hours
July position:
Introduction of a ban on exploitative use of ZHCs, with measures to ensure predictable hours and fairer working patterns. These measures will be extended to agency workers.
Final position:
Confirmed and clarified: The ban on exploitative zero-hours practices is retained, and the right to guaranteed hours is confirmed. However there is a new statutory duty on the Government to consult before setting:
- The initial reference period for calculating “regular hours”
- How often reference periods are reassessed
- The timing of guaranteed hours offers
Impact:
Flexibility remains possible, but the detail will be shaped by the consultation. We expect structured, evidence-based tests for regularity of work.
Seasonal and short-term work (in relation to contracts and guaranteed hours)
There was limited clarity on how seasonal, genuinely temporary demand would be treated.
Final position:
Change – safeguard added: The Act requires consultation before defining what constitutes a “temporary need” – seasonal and short term contracts may be used instead of guaranteed hours, but only within a framework developed following consultation.
Impact:
A critical protection for sectors relying on seasonable labour, but the definitions will not be automatic, and engagement in consultation will matter.
Regulation of umbrella companies
July position:
New regulatory framework to ensure ethical practices, transparency, and accountability.
Final position:
Confirmed, with detailed rules to follow. Separately, but related, from 6th April 2026 Joint and Several Liability (JSL) for PAYE and National Insurance Contributions will apply across labour chains.
Impact:
There is a significantly increased financial risk, making due diligence on umbrella providers essential. If you (or your agency provider) work with umbrella arrangements, you'll need to review supply chain compliance .
Unfair dismissal protection from day one
July position:
Workers will be protected from unfair dismissal from the first day of employment, subject to probationary processes.
Final position:
Change: day one protection removed and new statutory probation period dropped – unfair dismissal protection will apply after 6 months service, and the six month qualifying period will apply universally. The statutory cap on unfair dismissal compensation has been removed.
Impact:
The reduction of the currently qualifying period from 24 month to 6 months, alongside the removal of the compensation cap, will increase potential exposure for unfair dismissal claims. Termination decisions will need stronger documentation and process discipline.
Bereavement leave for all workers
July position:
Clear rights to bereavement leave, including for temporary and agency workers.
Final position:
Confirmed - unchanged
Impact:
Leave planning and compassionate absence policies will need to include contingent labour.
Flexible working rights extended
July position:
Flexible working requests may become a default right from day one, with employers required to provide clear business reasons for refusal.
Final position:
Confirmed, details to be set via regulations.
Impact:
Implications for remote or hybrid temp placements, especially in client-facing roles.
Other unchanged measures coming into force in 2027:
- Mandatory gender pay gap and menopause action plans.
- Defined standards for what are “reasonable steps” to prevent harassment.
- Legal protections for pregnant workers.
- Blacklisting protections and reforms.
- Changes to the industrial relations framework.
- Collective redundancy – revised consultation thresholds.
What’s still under consultation?
Precise dates are not published, but the duty to consult is now statutory.
- Guaranteed hours consultation: expected during 2025, ahead of 2027 commencement.
- Seasonal / temporary need definitions: consultation required before regulations are made.
- Umbrella company framework: consultation alongside tax enforcement measures.
- Codes of Practice (fire and rehire, harassment): draft versions expected before October 2026.
What you can do now
With Royal Assent secured and the overall roadmap confirmed it’s time to shift from monitoring change to actively preparing for implementation. There’s still some key details to be confirmed, but here’s what you can be doing now:
- Plan for guaranteed hours and seasonal frameworks: it’s likely the specifics will be confirmed via secondary regulation in early 2026, but you can begin mapping your temporary / seasonal worker usage ready for modelling scenarios once reference periods are confirmed.
- Review your policies and procedures: especially around sick pay, and harassment prevention – set a compliance timeline aligned with implementation dates.
- Engage with your supply chain partners – especially umbrellas – to determine future compliance: joint and several liability increases your financial risk from April 2026.
- Staff training and system readiness: your line managers will need training on all the new rights afforded as part of the Act, and your systems should be scoped to plan for changes in contracts, scheduling tools, and payroll rules.
- Communicate with your workers, clients, and suppliers – create transparency and build trust ahead of change.
Let's navigate the change together
The Employment Rights Act is now law, and represents the most significant shift in UK employment law in a generation. Implementation is phased, but scrutiny will increase. We’re here to help you stay compliant while protecting the flexibility your business depends on, supporting you to:
- Understand what the changes mean in real-world operational terms.
- Review and futureproof contracts, policies, and workforce models.
- Build resilience into your temporary staffing strategies.
- Stay compliant while maintaining the flexibility you need.
Your operational success is our priority – let’s talk.
