What is the Employment Rights Act?
The Employment Rights Act (ERA) is the Labour Government’s main reform of employment law under its “Make Work Pay” agenda. It aims to strengthen worker protections and change how employment rights are enforced.
The Act became law in December 2025.
The changes will not all start at once. They will be introduced gradually between 2026 and 2027.
What do we need to know about the Act?
- ERA bans “fire and rehire” practices.
- New day-one rights are introduced, including access to Statutory Sick Pay (SSP) (see additional blog for further insight) and parental leave.
- Workers will also gain the right to request predictable or guaranteed hours after 12 weeks.
- The qualifying period for unfair dismissal protection will fall to six months.
- The Act brings umbrella companies into regulation, strengthens trade union recognition rights, and updates rules on harassment, whistleblowing and redundancy.
- A new enforcement body, the Fair Work Agency, will oversee workplace rights (see below).
Many details will be determined through secondary legislation. Several consultations have already launched, and more are expected, including one on guaranteed hours.
Implementation timeline:
From April 2026
- Collective redundancy protective awards doubled
- Day-one rights for paternity leave and unpaid parental leave
- Stronger whistleblowing protections
- Bereaved partners’ paternity leave extended
- SSP reforms (removal of waiting days and lower earnings limit) (see additional blog for further insight)
- Fair Work Agency (FWA) established…
The New ‘Fair Work Agency (FWA)’
The Fair Work Agency (FWA) will go live on 7 April 2026, bringing together several existing labour market enforcement bodies into a single organisation.
From this date, the functions of the Gangmasters and Labour Abuse Authority (GLAA), the Employment Agency Standards Inspectorate (EAS) and the Office of the Director of Labour Market Enforcement (DLME) will transfer into the FWA. The new body will operate as an Executive Agency of the Department for Business and Trade (DBT).
The FWA will also take on responsibility for enforcement of the National Minimum Wage (NMW). However, during its first year of operation, this function will continue to be delivered by HM Revenue and Customs (HMRC) under a service level agreement.
The creation of the FWA represents a significant development in the UK’s approach to labour market enforcement. The government has indicated that the new body is intended to strengthen protection for workers, support victims of labour exploitation, and create a more level playing field for compliant businesses.
In the short term, the priority is to ensure continuity of existing services. The responsibilities of the FWA will initially mirror those of the current enforcement bodies, with further expansion planned over time. This is expected to include additional enforcement responsibilities in areas such as holiday pay and other employment rights, with further detail to be published during 2026–27.
Accessing services
From 7 April 2026, services will be accessed via a new GOV.UK page for the Fair Work Agency. Existing complaint routes remain unchanged, and complaints relating to National Minimum Wage, employment agencies, gangmasters and working hours should continue to be submitted through https://www.gov.uk/government/publications/pay-and-work-rights-complaints
https://www.labourproviders.org.uk/
From January 2027
- Unfair dismissal qualifying period reduced to six months
- Compensatory awards uncapped
- Fire and rehire protections introduced
During 2027
- Mandatory gender equality and menopause action plans
- Stronger protections for pregnant women and new mothers
- New bereavement leave (including pregnancy loss)
- Flexible working reforms
