Labour’s Employment Rights Bill (“the Bill”) had a bumpy ride last year on its way through the “ping pong” stage of parliamentary approval, but on 18 December 2025 the Bill finally received Royal Assent and became the Employment Rights Act (“the Act”).
Below we unpack the latest updates on the Act’s phased implementation.
Revised roadmap
Shortly after the Act became law, the Government published an updated implementation timetable on 3 February 2026, revising the original roadmap it released on 1 July 2025.
The headline is that there has been some slippage in the Government’s plan for the Act.
Of particular note is the fact that the restrictions on fire and rehire (previously expected to come into force in October 2026) have been pushed back to 1 January 2027. We now also have a precise implementation date for the changes to family-friendly and pay rights (6 April 2026) and the establishment of the Fair Work Agency (7 April 2026) – more on these changes below.
Both set to come into force on 1 January 2027 are the 6-month qualifying period for unfair dismissal protection and the removal of the compensatory award cap. The practical effect of this implementation date is that employees commencing employment on or after 1 July 2026 will automatically gain protection from dismissal on 1 January 2027. Likewise, any dismissals made on or after 1 January 2027 could attract a potentially unlimited compensatory award.
- See the full update – Plan to Make Work Pay and Employment Rights Act: timeline update.
Key date – 6 April 2026
6 April 2026 is fast approaching and represents a key date in the Government’s blueprint for phasing in most of the family-friendly and pay provisions in the Act.
Starting on 6 April 2026, employers will be encouraged via non-statutory guidance to voluntarily publish Menopause Action Plans alongside gender pay gap reporting, with the Government focussing its efforts on organisations of 250 or more employees. The guidance is set to require employers to outline the practical support, such as workplace adjustments, manager training and health assessments available to support staff experiencing menopause. By 2027, reporting will become mandatory with the aim of reducing menopause-related turnover.
Also arriving on 6 April 2026 are the “Day One” statutory rights to Paternity Leave and Unpaid Parental Leave. This means the removal of the existing service requirements of 26 weeks and 1 year respectively.
Statutory Sick Pay (“SSP”) will also be reformed on 6 April 2026, with the removal of the Lower Earnings Limit and waiting period. Currently, employees and agency workers must earn an average of at least £125 per week and have been ill for more than 3 consecutive calendar days before they qualify for SSP. Under the new regime, employees and agency workers will be eligible for SSP irrespective of their earnings, with SSP payable from the first full day of sickness absence.
Schools should prioritise updating their staff handbook and SSP policies to accommodate the upcoming changes to family-friendly and pay rights, including removing service-length requirements and other barriers to entitlement.
The Fair Work Agency (EST. 7 April 2026)
The Fair Work Agency (“FWA”) now has an exact launch date of 7 April 2026. With the power to inspect workplaces, issue notices for underpayment of statutory holiday pay, the National Minimum Wage and SSP and initiate legal action on behalf of workers, the FWA represents a significant shift from a complaint-driven enforcement system to proactive and “teeth-driven” monitoring.
As part of the Government’s drive to hold employers to account, the FWA will be afforded the power to impose penalties of up to 200% of the value of any unlawful underpayment.
Schools should prepare for the enforcement changes by strengthening the robustness of their employment contracts, ensuring that statutory minimum requirements are met and working hours records are accurate and easily retrievable for inspectors. It is also important to review the school’s payroll for accuracy and to reflect on agency and contractor usage to ensure compliance within the chain, as this is something the FWA may scrutinise.
How can Moore Barlow help?
Taking early action to prepare for these upcoming changes in the law will put schools in a far stronger position to adapt with minimal disruption. The Independent Schools team would be happy to support you through any preparatory steps you may wish to take. Please get in touch with your usual contact if you require assistance.
