The Employment Rights Act timeline every agency should pin to the wall

Last reviewed: 23 July 2026 · Reading time: 5 minutes

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is the largest overhaul of UK employment law in a generation — 28 areas of law, phased in across two years. The government's implementation roadmap has now been revised twice, most recently on 16 July 2026. That update is good news in one sense: several dates that were "expected" are now confirmed, and one big one has moved later. Here is where things stand, through a recruiter's lens.

Already in force — April 2026

Statutory Sick Pay changed on 6 April: the lower earnings limit and the three waiting days have gone, meaning SSP from day one of sickness for workers who previously earned too little to qualify — a direct cost change on temp books, and one your charge rates should already reflect. Paternity leave and unpaid parental leave became day-one rights. Whistleblowing protections were reinforced. The collective redundancy protective award doubled to a maximum of 180 days' pay. And on 7 April the Fair Work Agency launched as the single enforcement body recruiters now answer to.

Confirmed for October 2026

Two dates are now firm. From 1 October, the time limit for bringing most employment tribunal claims extends from three months to six, applying where the act complained of falls on or after that date. Every disputed exit from this autumn carries a six-month tail of claims risk — keep files complete and retrievable for longer. From 30 October, employers must take "all reasonable steps" to prevent sexual harassment, and become liable for harassment of their staff by third parties. For agencies this lands twice: once for your own consultants, and once for every worker you place into someone else's workplace, where responsibility is shared and needs to be written into client terms before October, not after.

Moved to January 2027: fire and rehire

The restrictions on dismissing staff to re-engage them on worse terms — previously expected in autumn 2026 — are now confirmed for January 2027. That is breathing space, not a reprieve: once in force, dismissing an employee for refusing changes to core terms such as pay, hours or holiday becomes automatically unfair. Note for the same window: tipping rule changes are now expected by the end of 2026, relevant if you run a hospitality desk.

January 2027 remains the big one

From 1 January 2027, the qualifying period for unfair dismissal drops from two years to six months, and the cap on the compensatory award is removed, for dismissals taking effect on or after that date. A six-month threshold transforms hiring risk — for your own consultants and for every client you advise. Expect scrutiny of probation practice, documentation and early-tenure exits to intensify through the autumn. And one provision deserves particular attention in this sector: dismissing an employee to replace them with someone who is not an employee — which can include agency workers — is set to become automatically unfair. Expect clients to ask about it; be ready with an answer.

2027 and beyond — and two consultations that matter now

Guaranteed-hours rights for zero-hours workers — including, critically, their application to agency workers — remain planned for 2027; the consultation on how they will work closes on 25 August 2026. This is the single biggest structural change on the horizon for temp desks. Separately, the government is consulting until 22 September 2026 on giving the Fair Work Agency the power to enforce statutory holiday pay from 2027, with proposals including investigation of up to six years of underpayments and civil penalties. Umbrella company regulation and mandatory action plans for larger employers follow through 2027, alongside the completion of HMRC's transfer into the FWA.

The practical point stands: 2026 is not breathing space, it is the build-up phase. The July roadmap moved one date later and nailed two others down — the direction of travel has not changed at all. Agencies that adjust contracts, rates and documentation this year will treat January 2027 as a date; the rest will treat it as an emergency. This timeline is reviewed weekly and updated whenever the government moves a date.

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