On 1st July 2025, the UK government released its roadmap for the Employment Rights Bill (ERB), offering long-awaited clarity for businesses and workers alike. With Royal Assent expected in September 2025, the bill proposes generational reforms to employment law, and with the intention to phase these in over the next two years.
An overview of the new ERB timeline
There are 28 new policies however, some of the most relevant ones for recruitment agencies and end clients are:
- April 2026: Will see the establishment of the Fair Work Agency as well as new measures for Statutory Sick Pay (SSP) and parental leave.
- October 2026: There will be an extension of employment tribunal time limits and end of fire and rehire.
- 2027: Will mark the rollout of major reforms including day one unfair dismissal rights, regulation of zero-hours contracts and the definition of umbrella companies
A phased consultation process begins Summer 2025.
The government suggests that this roadmap reflects a more measured approach, allowing time for meaningful consultation and implementation.
Chris Bloor, Director of Compliance at Parasol says: “The roadmap should hopefully provide businesses with some much need clarity and more importantly time to understand and work with their supply chain partners to adapt to these changes”
“Interestingly, the regulation of zero hours contracts, day one dismissal rights and umbrella definition measures have been pushed back until 2027. For me, this is an indication that the government is listening to the concerns of businesses and therefore it will be essential for all parts of the recruitment supply chain to respond to the relevant consultations, to ensure that the government fully understands the potential impact of these proposals.”
“At Parasol, we have the people, knowledge, and experience to help agencies and end clients with understanding these new measures and we welcome the opportunity to help you and your business to navigate through these changes.”
The government’s full ERB timeline is:
September 2025: Royal Assent expected
Immediately after
Repeal of Strikes (Minimum Service Levels) Act 2023
Protections against dismissal for industrial action
Simplified trade union ballot notices
April 2026
Day 1 paternity and unpaid parental leave
Whistleblowing protections
Fair Work Agency established
Removal of lower earnings limit for Statutory Sick Pay
Simplified trade union recognition and electronic balloting
Collective redundancy protective award increased
October 2026
End to fire and rehire
Adult Social Care Negotiating Body established
Employer duty to prevent sexual harassment
Stronger trade union access and protections
Extension of employment tribunal time limits
New tipping laws
2027
Day 1 unfair dismissal rights
Regulation of zero-hours contracts and umbrella companies
Mandatory gender pay gap and menopause action plans
Bereavement leave
Enhanced protections for pregnant workers
New industrial relations framework
Flexible working improvements
Collective redundancy consultation threshold changes
