Employment Rights Act: What it Means and What Recruitment Agencies Need to Prepare for

The Employment Rights Bill has completed its journey through Parliament and will shortly become law as the Employment Rights Act. While some of the more radical proposals were softened, the final legislation still represents a significant shift in employer risk and compliance obligations, with most changes expected to take effect between 2026 and 2027.

Below are the key points recruitment agencies should be preparing for;

Expansion of Day-One Rights

Statutory Sick Pay will be payable from day one, and paternity and unpaid parental leave will also become day-one rights.

Action: Update Contracts to reflect the changes, accurate recording of SSP and build the extra exposure into any costings going forward.

Guaranteed Hours and Shift Rights

Workers who regularly work certain hours will gain rights to guaranteed hours contracts, along with new protections around shift notice and cancellation pay. Full details will follow in secondary legislation.

Why this matters: Flexible and variable staffing models may need to change.

Action: Review contract types, workforce planning and scheduling systems.