Landmark changes delivered through the Employment Rights Bill, including sick pay for up to 1.3m of low earners and day one rights to parental and paternity leave, will be introduced for the first time from early next year, demonstrating the government’s determination to boost living standards and protections for millions, while aiming to give employers the certainty they need to plan for future changes.

The announcement on Tuesday (1 July) also states that the new Fair Work Agency will launch from early next year, intended to create a level-playing field “so rogue employers cannot undercut good businesses who comply with the law”. 

Key measures in the bill will come into effect next year and in 2027, while further consultations are planned from this year into the next.

The reforms are a key part of the government’s Plan for Change, aimed to kickstart economic growth and boost productivity.

After the bill is passed:

• Immediate repeal of the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Union Act 2016 to create a better relationship with unions that will prevent the need for strikes.
• Protections against dismissal for taking industrial action to ensure workers can defend their rights without fear of losing their jobs.

April 2026:

• Collective redundancy protective award – doubling the maximum period of the protective award to provide stronger financial security for workers facing mass redundancies.
• ‘Day one’ paternity leave and unpaid parental leave to support working families from the very start of employment.
• Whistleblowing protections to encourage reporting of wrongdoing without fear of retaliation.
• Fair Work Agency established to enforce labour rights and promote fairness in the workplace.
• Statutory sick pay – removing the lower earnings limit and waiting period.
• A package of trade union measures including simplifying trade union recognition process and electronic and workplace balloting to strengthen democracy and participation in the workplace.

October 2026:

• Ending ‘fire and rehire’ practices to protect workers from being forced into worse terms under threat of dismissal.
• Regulations to establish the fair pay agreement adult social care negotiating body in England to raise standards and pay in the social care sector.
• Tightening tipping law – strengthen the law on tipping by mandating consultation with workers to ensure fairer tip allocation.
• Requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees to create safer, more respectful workplaces.
• Introducing an obligation on employers not to permit the harassment of their employees by third parties to extend protections to all work environments, including public-facing roles.
• A package of trade union measures including new rights and protections for trade union representatives, extending protections against detriments for taking industrial action and strengthening trade unions’ right of access.

2027:

• Gender pay gap and menopause action plans (introduced on a voluntary basis in April 2026) to promote gender equality and support women’s health in the workplace.
• Enhanced dismissal protections for pregnant women and new mothers to safeguard job security during pregnancy, maternity leave and a return-to-work period.
• Further harassment protections, specifying reasonable steps which will help determine whether an employer has taken all reasonable steps to prevent sexual harassment to provide clearer guidance and stronger enforcement against harassment.
• Creating a modern framework for industrial relations to build a fairer, more collaborative approach to workplace relations.
• Bereavement leave to give workers time to grieve with job security.
• Ending the ‘exploitative use’ of zero-hours contracts to provide workers with stable hours and predictable income.
• ‘Day one’ right to protection from unfair dismissal to ensure all workers are treated fairly from the start of employment.
• Improving access to flexible working to help people balance work with family, health and other responsibilities.

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