03.02.2026

The Government has set out further detail on the delivery of its Plan to Make Work Pay, with a wide-ranging programme of employment law reforms to be phased in from late 2025 through to 2027 under the Employment Rights Act 2025. 

The staged approach is intended to give employers and workers time to prepare, alongside continued consultation to ensure the reforms work in practice for businesses of all sizes.

From 2026, employers will see changes across areas including trade union legislation, statutory sick pay, family leave, redundancy, whistleblowing and workplace protections, alongside the creation of a new Fair Work Agency. 

Further reforms in 2027 will affect dismissal rights, flexible working and zero-hours contracts. Make UK will continue to engage with government to assess the impact on manufacturers and support clear, proportionate implementation.

“This is the biggest change to Employment Law in decades and business will welcome a common sense approach to delay key measures to give companies enough time to prepare and, Government the opportunity to consult with industry where needed.

“However, only a small number of measures have been changed with many remaining the same and key details still to be ironed out. It would have been helpful for all measures to move back by six months to preserve the same breathing space for businesses before critical reforms kick in.

"It is also frustrating that some of the most complex and impactful measures – such as protection from unfair dismissal and fire and rehire – will take effect outside of the usual timings for employment law changes, making an already difficult job for businesses even harder."