Update on the Employment Rights Act 2025

We are pleased to share the news that today [18 December] the Employment Rights Bill received Royal Assent and has now become the Employment Rights Act 2025.

This is a significant milestone for the Fair Pay Agreement programme ensuring that the government may lay regulations establishing the Negotiating Body, bringing together employer and employee representatives, in 2026.

The Department of Business and Trade (DBT) has published a press release and an updated factsheet about the Act and what it means for employment rights on GOV.UK. Updated factsheets for different measures in the legislation will be published here in due course. 

What happens now?

As you know the public consultation on the design of the Fair Pay Agreement process remains open until 16 January 2026, and the Easy Read version until 6 March 2026. Throughout this period DHSC will continue to run engagement events with the sector. We will share more information about next steps once the consultation has closed.

Beyond Fair Pay Agreements, the Act will be delivered in phases across a two-year period. This approach will ensure that employees and employers have time to plan and prepare.

The first lot of measures will come into effect at Royal Assent or soon after. These will repeal the Strikes (Minimum Service Levels) Act 2023 and parts of the Trade Union Act 2016, restoring workers’ ability to take industrial action without excessive legal barriers. In April 2026 the government will deliver day one rights to statutory sick pay and paternity leave, as well as launching the Fair Work Agency. 

The Government previously published a Roadmap, setting out expected implementation plans for all measures within the Act, and remains committed to the timelines set out within it. Further updates and support to help employers and workers prepare for reforms will be provided in 2026.

As set out in the Roadmap, the Government is also consulting on the detail of some of the measures within the Act. These consultations are being phased to allow employers from all sectors, workers, trade unions and other stakeholders to fully engage with the complex policy issues at hand.

We are working with DBT to facilitate engagement events on the upcoming Zero Hours Contracts consultation and Statutory Sick Pay Implementation in the new year. We will keep you informed about these.

Last but not least, we want to thank all of you for all your continued support and engagement with the programme over 2025 and wish you a Merry Christmas and Happy New Year.

See you in 2026,

The Adult Social Care Fair Pay Agreement team