Overview
- Royal Assent is expected within days, paving the way for the Employment Rights Bill to become the Employment Rights Act.
- The government traded its day‑one unfair dismissal plan for a six‑month qualifying period while scrapping the statutory cap on unfair dismissal compensation.
- From April 2026, statutory sick pay becomes available from day one and paternity and unpaid parental leave start on day one, with further measures phased through late 2026 and into 2027.
- The law significantly restricts zero‑hours contracts by requiring offers of guaranteed hours and curbs fire‑and‑rehire in most cases, alongside stronger trade‑union recognition, workplace access, and enforcement via a new Fair Work Agency.
- Business groups cite annual costs of roughly £4.5–5 billion and lawyers warn of extra strain on Employment Tribunals already facing a record backlog of about 515,000 cases, as Conservatives pledge to repeal key measures if returned to power.