Employment Rights Act 2025

The Employment Rights Act 2025, part of the Labour government’s pledge to “Make Work Pay”, represents the biggest overhaul of employment rights in decades. The legislation received Royal Assent towards the end of December 2025, meaning it is now “law”.

Between 2026 and 2027, any company who has employees, uses temporary workers, or supplies temporary workers, will be affected by at least some of these changes. Here is an overview of the changes with an emphasis on employers. Here is an overview of the changes with an emphasis on recruitment agencies supplying temporary workers to end clients.

Employment Rights Bill – Implementation timeline

The government has released a timeline for expected “go-live” dates for many of the measures in the Employment Rights Bill, which is in the final stages of the parliamentary process. To save you having to trawl through yourselves, I’ve drafted a briefing document here.

Thankfully, two of the most impactful changes – the introduction of unfair dismissal rights from Day 1 of employment, and changes to zero hour contracts – aren’t likely to be introduced until 2027. But there are still alot of new measures going live between now and then.

The government will also release quite a few consultations during the rest of 2025 (details towards the end of the briefing document) so get involved if you can and give your feedback!