The government has published new guidance to help firms prepare for the most significant overhaul of employment law in decades, as ministers seek to balance stronger worker protections with business concerns over cost and complexity.
The support follows the passage of the Employment Rights Act 2025 and is intended to help employers navigate a series of reforms due to be introduced gradually over the next two years. Officials say the phased approach will give companies time to adapt while improving job security and retention.
From April, statutory sick pay will be payable from the first day of absence, alongside new “day one” rights for parental and paternity leave. Further measures, including changes to dismissal protections and employment practices, will follow later in the implementation period.
A new online hub provides free guidance on timelines, compliance requirements and practical steps for employers. Ministers say the resource will be updated as reforms are rolled out.
Kate Dearden, the employment rights minister, said the changes were central to the government’s growth agenda. “By improving fairness and security at work, we boost productivity, strengthen retention and support businesses to succeed,” she said.
However, business groups have urged ministers to go further in giving firms time to prepare.
Lucy Atherton, head of employment law and knowledge at Make UK, said the reforms represented a major shift for employers.
“This is the biggest change to employment law in decades and business will welcome a common-sense approach to delay key measures,” she said. “It gives companies time to prepare and government the opportunity to consult with industry.”
She warned, however, that only a limited number of measures had been adjusted. “Many remain unchanged and key details still need to be ironed out,” she said, adding that delaying all reforms by six months would have provided more consistent breathing space.
Ms Atherton also highlighted concerns about the timing of some of the most complex provisions. “It is frustrating that measures such as protection from unfair dismissal and fire and rehire will take effect outside the usual timetable for employment law changes, making an already difficult job for businesses even harder,” she said.
Officials say nearly 350 engagements with employers have taken place during the development of the reforms, with further consultation planned. Support is also being provided through the Advisory, Conciliation and Arbitration Service, which is offering training, webinars and updated guidance.
Niall Mackenzie, chief executive of Acas, said early preparation would help firms avoid disputes. “Being ready for change can prevent conflict and support healthy working relationships,” he said.
While many employers accept the case for higher minimum standards, industry bodies warn that smaller firms in particular face rising administrative and compliance burdens at a time of weak growth and high operating costs.
The government argues that gradual implementation and expanded support will limit disruption. But business leaders say the success of the reforms will depend on clarity, consistency and continued dialogue with industry as the changes come into force.
