Employment law reforms on the horizon
Employment law reforms: Preparing for change
The next few years are set to bring a period of significant change in employment law with the new Labour government setting out about implementing a substantial overhaul of the existing rules and regulations as it seeks to deliver "economic security and growth to businesses, workers and communities across the UK".
These reforms are set out in the Employment Rights Act (ERA) which received Royal Assent on 18 December 2025.
On 1 July the government published its roadmap for implementing the different parts of the ERA – save for reforms to unfair dismissal (which have been brought forward as the agreed reforms will not now be consulted on) – at present, these dates appear to remain unchanged. The government plans to use common commencement dates for the majority of regulations laid using the powers provided for in the ERA of 6 April and 1 October.
Accompanying its employment law reforms, the government is also looking to tackle economic inactivity and bet Britain working. You can read more here.
While we now have the ERA, it remains more important than ever for employers to keep track of the changes and stay ahead of what these may mean for its business as we now expect a large number of the measures to be consulted on and detailed regulations to be published.
Next Steps
Although we are now waiting for further details in the related consultations and regulations, employers will need to:
• Consider the impact of each proposal on their existing organisation, including their cost base and employment model;
• Prioritise specific areas of concern;
• Identify responsibilities and key actions in preparation for the changes.
The ERA applies to England, Scotland and Wales (with some territorial deviations).
Horizon scanner
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