UK passes biggest workers' rights upgrade in decades

The Employment Rights Act 2025, which the government said marked the 'biggest upgrade to rights at work for a generation', is set to benefit around 15 million people, or half the workforce, according to the government. Officials said the reforms will eradicate insecure work, unfair pay and poor working conditions. A government spokesman said the reforms will bring industrial relations into the 21st century.

Day-one rights are employment protections that apply from the first day of a job, not after a period of service. The Employment Rights Act 2025 expands day-one rights to include sick pay, parental leave, and protection from unfair dismissal. From April 2026, Statutory Sick Pay becomes a day-one right with no waiting period or minimum earnings threshold. Paternity leave and unpaid parental leave are available from day one, but statutory pay still generally requires 26 weeks of service. The qualifying period for ordinary unfair dismissal will reduce to six months from 2027, though workers will be subject to a proposed nine-month probation period when they can still be sacked without a full process. Flexible working requests must be considered from day one, and bosses must say yes unless they can prove it is unreasonable.

Statutory sick pay is now paid from the first day of absence instead of the fourth day. The lower earnings limit for statutory sick pay has been removed, extending it to 1.3 million lowest-paid employees. Millions of people will be able to get sick pay from the first day they are ill and claim unpaid parental leave as soon as they start a job. According to TUC research, approximately 4.7 million women are to benefit from stronger sick pay from April, including more than 830,000 who will receive statutory sick pay for the first time. The TUC study noted that lowest-paid women are currently not eligible to receive sick pay because they earn below the threshold of £125 a week.

Parental leave expansions include paternity leave and unpaid parental leave as day-one rights. According to multiple reports, bereaved partners' paternity leave allows up to 52 weeks of leave if the mother or primary adopter dies within the first year of a child's life. Research indicates that new fathers can take two weeks’ paid leave at a rate of either £187.18 a week or 90% of average weekly earnings, whichever is lowest. A new statutory right to unpaid bereavement leave is expected from 2027, according to research.

Exploitative zero-hours contracts are to be banned, with a 'Right to a Guaranteed Hours Contract' introduced, according to multiple reports. The ban on exclusivity clauses in zero-hours contracts has been expanded as of January 2026, multiple reports said.

Trade unions can use a simplified statutory recognition process with a reduced membership threshold, according to multiple reports. The minimum membership threshold for union recognition has been reduced from 10% to 2%, multiple reports said. From October 2026, trade unions can request access to workplaces to meet and recruit members, according to multiple reports. Trade unions have also been given the right to visit workplaces weekly under a code of practice, multiple reports said. ONS data shows union membership in the UK is around 22%, down from nearly 40% in 1990. Since 2020, 17 new trade unions have been set up in the UK, focused on gig economy and healthcare, according to law firm Littler.

New enforcement mechanisms include the launch of the Fair Work Agency (FWA) to enforce employment rights, according to multiple reports. Fines for employers who do not consult in collective redundancy situations have doubled to 180 days' pay per employee, multiple reports said. Employers must keep records of annual leave and holiday pay, according to multiple reports.

Reporting sexual harassment is now a 'qualifying disclosure' giving whistleblower protections, according to multiple reports.

The TUC says the Act will deliver a £10 billion boost to the UK economy. The estimated direct cost to business of the Act is between £1bn and £5bn per year once fully implemented, according to a UK government report. Women will disproportionately benefit from new workers’ rights measures rolled out from next month, according to TUC research. Research last year found that mothers lose an average of £65,618 in pay by the time their first child turns five. The Office for National Statistics reported that mums in England are hit by a 'substantial and long-lasting reduction' in their pay after they have children. Paul Nowak, the TUC general secretary, said: 'For too long women have borne the brunt of a sick pay system that is not fit for purpose, and a culture of exploitative, insecure work.' A government spokesperson said: 'The Employment Rights Act is a huge boost for women in the workplace – introducing enhanced protections for pregnant women and new mothers, menopause action plans for large employers and rights for parental leave from day one.'

Business groups have expressed concerns about how the changes will work in practice. Acas head Fred Jerrome cautioned that employers could face hefty fines. The British Retail Consortium (BRC) warned the Act risks adding to cost pressures and creating a 'jobless generation'. Helen Dickinson, BRC chief executive, said the trade recognition threshold change risks undermining balance. The Office for National Statistics reported that retail jobs fell by 383,000 over the decade to 2025. Businesses are facing seven government consultations on the Employment Rights Act, totalling 358 pages and 173 questions, according to multiple reports. Another seven consultations out of 25 planned are yet to be launched, multiple reports said. The Employment Rights Act has caused a surge in work for employment lawyers due to inconsistencies, according to multiple reports. Business groups including the BCC, CBI, and BRC criticised the lack of consultation on union access rights, according to Kate Shoesmith (BCC), Matthew Percival (CBI), and Helen Dickinson (BRC).

Political reactions have been mixed. Business Secretary Peter Kyle accused Reform UK of wanting to drag Britain back to the 1950s. Reform UK's Robert Jenrick called the consultations 'hypocrisy'. Shadow Business Secretary Andrew Griffith said the government is 'gaslighting the public'. Deputy Prime Minister Angela Rayner defended the time taken for changes to be introduced.

The implementation timeline involves a phased rollout with consultations. Most planned changes will not take effect for two years following a period of consultation, according to research. Certain measures in the Employment Rights Bill have been criticised for being watered down or delayed, according to critics. Businesses are facing seven government consultations, with another seven out of 25 planned yet to be launched, according to multiple reports.

The Employment Tribunal backlog in England and Wales reached 68,192 cases at end of January 2026, up from 45,751 a year earlier, according to the Ministry of Justice. The Law Society raised concerns about the backlog and the FWA's capacity, according to Law Society vice president Brett Dixon.

Several uncertainties and contradictions remain in the reforms. The qualifying period for ordinary unfair dismissal will reduce to six months from 2027, but workers will be subject to a proposed nine-month probation period when they can still be sacked without a full process. The minimum membership threshold for union recognition has been reduced from 10% to 2%, according to multiple reports, but the precise threshold and how the simplified process works remain unclear. The effective dates for day-one rights are also uncertain: from April 2026, Statutory Sick Pay becomes a day-one right, but some reports suggest changes take effect from April 2025. The exact implementation timeline for each measure is not yet clear.