The Employment Rights Act 2025 (“ERA”) marks a significant overhaul of UK employment law, and much of its final shape will be determined by an extensive series of Government consultations throughout this year.
These consultations invite input from employers, workers, and representative bodies, focusing on the secondary legislation and codes of practice that will underpin the new legal framework.
Consultations this year fall into three main categories:
- Pay and role security, covering zero-hours contracts and guaranteed hours; agency work and umbrella companies; Statutory Sick Pay reform; fire-and-rehire; and collective redundancy protections.
- Family-friendly rights, addressing pregnancy and maternity dismissal protections; bereavement leave, including pregnancy loss; and day-one parental and paternity leave rights.
- Collective and trade union rights, including union access to workplaces; balloting and industrial action processes; and protection against detriment for union activity
These broad consultations provide participants with an opportunity to shape the new obligations.
In this Keynote, employment lawyers Emma Clark and Imogen Dale highlight areas likely to be of greatest interest to employers and employees.
Zero-hours contracts
Currently, zero-hours contracts provide no guaranteed hours, and workers are not obliged to accept work. Whilst exclusivity clauses are banned, there is no right to advance notice or compensation for cancellation.
Under the ERA, employers will have to offer guaranteed hours to workers who regularly work a pattern of hours over a defined reference period. Workers can choose to remain on their existing contracts. Employers must also give reasonable notice of shifts and any changes to working hours.
Consultations will seek feedback on:
- Which employers must offer guaranteed hours
- Responsibility for giving notice of shifts
- Compensation for cancelled shifts and allocation of liability where multiple parties are involved
- Defining the reference period, handling seasonal demand, and sector-specific considerations.
Family-friendly rights
The ERA introduces enhanced protection from dismissal for employees during pregnancy and after maternity leave.
The consultation will address:
- Permitted grounds for dismissal (e.g. business closure)
- Duration of enhanced protection
- Interaction with redundancy processes.
A separate consultation will address statutory bereavement leave, including pregnancy loss before 24 weeks. The consultation will seek guidance on who should qualify as a close relation, whether leave should be paid or unpaid, evidence, and notice requirements.
Day-one rights to parental leave will also be considered, with attention on eligibility, notice, and integration with existing company policies.
Other key consultations
Additional consultations will cover:
- Statutory Sick Pay reform
- Fire-and-rehire restrictions
- Regulation of umbrella companies
- Trade union access to workplaces and industrial relations
- Sector-wide collective bargaining pilots.
We await sight of many of the consultations as the Government has not released all of them yet.
The ERA sets a new direction for employment law, but its practical impact will depend on the outcomes of these consultations. We encourage employers, employees, and representative groups to participate, and to keep an eye out for published responses later in the year
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If you have questions or concerns about the ERA, please contact Emma Clark and Imogen Dale.