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Employment Rights Act receives Royal Assent

The Employment Rights Bill has become law, receiving ‘Royal Assent’ today. This is when the King formally agreed to make the Bill into an Act of Parliament (Employment Rights Act 2025).

The Act will introduce additions and amendments to existing legislation, including the Employment Rights Act 1996, with employment law changes taking place over a period of 2 years. Most changes will happen in 2026 and 2027.

The Government states that over 15 million workers across the UK will benefit from a modern framework for workers’ rights that helps more people stay in work, supports productivity, and boosts living standards.

New day one rights will now allow 32,000 more dads and partners each year to take paternity leave and 1.5m more parents to take unpaid parental leave.

New statutory sick pay reforms mean up to 1.3m low paid employees will now be able to take time off when they’re sick without worrying about not being paid.

Employees who are going through the toughest personal circumstances will also be afforded dignity at work, with up to 2.7m employees a year to gain the right to the new bereavement leave entitlement.

The number of workers on zero hours contracts has risen over the past decade to over 1 million. These workers, who are often the lowest paid in society, will now benefit from new protections against exploitative contracts – ranging from the right to a contract that reflects the hours they work, to compensation if their shifts are cancelled at short notice.   The changes will happen in 2027.

And while people used to have to wait two years before being protected from unfair dismissal, they will now be entitled to this right six months after starting a new job.

The Fair Work Agency will be established in April 2026, to:

  • bring together existing enforcement bodies
  • take on enforcement of other employment rights, such as holiday pay and statutory sick pay

The full list of reforms to be introduced can be found here.

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