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Employment Rights Bill Roadmap: What Every Recruitment Agency Needs to Know

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The UK Government’s new Employment Rights Bill is the biggest shake-up of workplace law in decades — and recruitment agencies are right at the heart of it.

From late 2025 through 2027, sweeping reforms will change how you hire, contract, pay, and support workers. For agency owners, this isn’t just political noise — it’s an operational game-changer.

So what’s coming, when, and how can you prepare?

The Key Phases of Change

The reforms will be introduced gradually, with public consultations along the way. These consultations are your chance to shape the rules before they become law.

  • Summer / Autumn 2025 → “Day 1” unfair dismissal rights, fair pay in adult social care, and new bargaining bodies for school support staff.

  • Autumn 2025 → Fire and rehire ban, umbrella company regulation, zero-hours restrictions, bereavement leave, and stronger rights for pregnant workers.

  • Winter / Early 2026 → Flexible working from day one, stricter tipping law, redundancy rules, and industrial action protections.

What Agencies Need to Prepare For

  • Statutory Sick Pay from Day 1 – no earnings threshold, no waiting period.

  • Day 1 parental leave – expect more client requests for cover at short notice.

  • Union recognition changes – faster, easier recognition could affect staff retention.

  • Ban on fire and rehire – restructuring support will need to be compliant.

  • Sexual harassment prevention duties – agencies and clients must prove safeguards are in place.

  • Umbrella company regulation – liability may fall on agencies if partners aren’t compliant.

  • Ban on exploitative zero-hours contracts – predictable hours will become mandatory.

How to Stay Ahead

  1. Review contracts now — SSP, zero-hours, and dismissal protections.

  2. Audit umbrella partnerships — non-compliance could cost you.

  3. Work with clients — ensure joint responsibility for harassment prevention.

  4. Update onboarding materials — workers must get clear info on union rights.

  5. Plan for flexibility — prepare for more requests around leave and flexible work.

Bottom Line

These reforms aren’t optional. Agencies that adapt early will not only stay compliant but also stand out by helping clients navigate the changes confidently.

👉 For more information regarding the Employment Rights Bill, download our FREE GUIDE HERE