ERA Update and Government website launch

On 3^rd February the Government launched a new website for employers, employees and workers providing a summary of key changes, details of the latest timeline, and practical guidance.

The Employment Rights Act (ERA) timeline was updated and a new consultation on fire and rehire was issued.

APSCo UK and OutSource regularly publish new and revised guidance, tailored for the needs of our recruitment and workforce solutions members. These are detailed, with specific guidance for key sectors, such as education and clinical healthcare, and intended to give a clear steer on how to comply. Not preparing properly now could result in disputes and contractual and tribunal disputes downstream.

Members should also be conscious of their clients’ state of preparedness and the approach of their supply chain, particularly the umbrella companies they work with. Client contracts need to recognise additional costs within the supply chain which need to be accounted for in contractual rates or recognised as a potential additional cost of supply.

The first big changes will be coming into effect in April 2026 and include:

• Statutory Sick Pay – day one rights and no lower earning limits – applicable to employees, workers including agency workers

• Paternity Leave and Unpaid Parental Leave

• Bereaved Partner’s Paternity Leave

• Collective redundancy protections

• Whistleblowing protections extended to sexual harassment – applies to employees, workers including agency workers

• Simpler enforcement through the Fair Work Agency

All employers and suppliers of workers should be updating their policies and payroll systems now ahead of April 6th.

Our members can benefit from regular face to face events, with break out sessions and opportunities to share best practice. They can also feed into responses to consultations.

Members should register for upcoming events. Of course we continue to represent our members to Government and other stakeholders and our latest PR can be found here.

We are expecting further news on consultations by 6th February.

This news may shed light on the fact that ZHC measures are still scheduled for 2027 but the latest implementation timeline omits the words “applying ZHC measures to agency workers”.

APSCo UK and OutSource wrote to the Minister for Employment Rights and Consumer Protection Kate Dearden MP in mid-January highlighting that the Government is flying blind in terms of impact on the economy of applying the Zero Hour Contract measures to agency workers. The extension to agency workers was not referenced in the Government’s latest economic impact analysis (published 7th January) with the analysis suggesting ZHC would apply to few employers and low paying sectors would be most heavily impacted. The analysis optimistically reduced likely impact overall of the ERA to £1 billion from an earlier £5 billion estimate.

Given the Government’s renewed push for growth in 2026, we hope that it is finally looking to push back on provisions that will reduce flexibility, and damage job creation, particularly for young people and disabled workers . Cohorts that the economic analysis made clear are more likely to work on zero hour contracts, and our members know these are an important route into permanent work.

We support the Government in its push to prepare employers, hirers, employees and workers for the changes and recommend a review of its own series of factsheets.

Acas also provides employees and employers with free, impartial advice on workplace rights, rules and best practice. They have a range of guidance on their site which can be accessed via links below:

• Free Employment Rights Act webinar outlining key measures and employer actions.

• Acas training page, covering a range of employment law topics to help prepare businesses for changes.