A ban on "exploitative" zero-hours contracts and "day-one" protections against unfair dismissal will not come into force until 2027, as the government opts for a phased rollout of its landmark Employment Rights Bill. Ministers state the delay is intended to give businesses ample time to prepare for the reforms, balancing safeguards for employees with "the practical realities" of running a company.
Prime Minister Sir Keir Starmer has hailed the legislation, currently making its way through Parliament, as "the single biggest upgrade to workers’ rights in a generation". Beyond the headline measures, the Bill includes bolstered rights to parental leave, a crackdown on "fire and rehire" practices, and the removal of the lower earnings limit and waiting period for statutory sick pay. Under the new rules, bosses will also be required to offer workers a guaranteed hours contract reflecting their regular work, alongside reasonable notice of shifts and payment for shifts.
According to a new "roadmap" published by the government on Tuesday, some changes will be implemented immediately after the Bill receives royal assent, while others will take up to two years to come into effect.
Upon the legislation’s passage, Conservative-era rules restricting industrial action in sectors including health and education will end, with the Strikes (Minimum Service Levels) Act 2023 set to be instantly repealed. New protections against dismissal for striking workers will also come into effect.
Further reforms are scheduled for April 2026, including changes to sick pay, enhanced protections for whistleblowers, "day-one" paternity leave, unpaid parental leave, and measures to strengthen financial security for staff facing mass redundancies.
October 2026 will see the implementation of measures to end "unscrupulous" fire and rehire practices and tightened tipping laws aimed at ensuring workers receive a fair proportion of gratuity. Additionally, measures to strengthen trade union access rights and protect employees from harassment are due to come into effect.
The final phase, in 2027, will introduce the ban on the "exploitative" use of zero-hours contracts and "day-one" rights to protection against unfair dismissal. This phase will also bring improved access to flexible working, strengthened protections against dismissal for pregnant women and new mothers, bereavement leave, and the introduction of full gender pay gap and menopause action plans on a voluntary basis from April 2027.
Deputy Prime Minister Angela Rayner affirmed the government was "working fast" to deliver the reforms, with some due to kick in "within months". Business Secretary Jonathan Reynolds added: "By phasing implementation, our collaborative approach balances meaningful worker protections with the practical realities of running a successful business, creating more productive workplaces where both employees and employers can thrive." The Department for Business and Trade stated that a "structured timeline" would allow stakeholders to plan and prepare.
Business groups have largely welcomed the extended preparation time. Kate Nicholls, chief executive of UKHospitality, said: "Clear and precise timelines on when aspects of this legislation, and the processes to deliver them, will come into force is essential, and it was important that the Government embark on providing clarity." Neil Carberry, Recruitment and Employment Confederation (Rec) chief executive, noted the timeline "gives room for full and frank consultation" and "gives businesses important time to plan."
However, union leaders, while welcoming the changes, urged employers not to wait for the law to change. TUC general secretary Paul Nowak stated: "It’s welcome that workers will start to benefit from these long overdue changes from later this year – but this timetable must be a backstop. We need to see these new rights in action as soon as possible. Decent employers don’t need to wait for the law to change." GMB general secretary Gary Smith echoed this, saying: "GMB members now know when these much-needed improvements will happen – we urge good employers not to wait; do the right thing and make these changes a reality today."
The Conservative opposition criticised the roadmap as "another U-turn" and an admission that the government had "got it wrong again." Shadow business secretary Andrew Griffith claimed: "273,000 people have lost their jobs since the autumn budget and this trade union inspired Bill is going to make that even worse meaning more children growing up in workless households."
