Labour Government Policy Hub

Timing of reforms

The Government is taking a phased approach to implementation of its Plan to Make Work Pay as follows: 

1. Employment Rights Bill

Described as phase one, the Employment Rights Bill was introduced on 10 October 2024 and is now making its way through Parliament where it could be amended along the way – many Government and non-Government amendments have already been proposed for inclusion. 

It has completed its Committee Stage and is now heading for the Report Stage in the House of Commons, where on the floor of the House provisions will be considered and may be amended/ added to. 

Targeted consultations will also take place on several reform areas in the Employment Rights Bill and are expected to begin in 2025, although some limited consultations were published on 21 October 2024, including in respect of certain aspects of the reforms on fire and rehire, zero-hour contracts, Statutory Sick Pay, and industrial relations and we are awaiting responses to those consultations (which may or may not lead to changes to the Employment Rights Bill). 

Much of the detail will be fleshed out by secondary legislation, codes of practice and guidance – which will come later.

Overall, the Government anticipates that the majority of reforms in the Employment Rights Bill will take effect no earlier than 2026, with reforms to unfair dismissal no sooner than Autumn 2026.

There will, however, be some reforms in the Employment Rights Bill that will come into force earlier than this, such as:

  • the repeal of the Strikes (Minimum Service Levels) Act 2023, which is currently set to come into effect as soon as the Bill is passed; and
  • relevant provisions of the Trade Union Act 2016 which are currently set to be repealed two months after the Employment Rights Bill is passed.

2. Reforms using existing powers or other means

Some reforms can be delivered outside of the Employment Rights Bill using existing powers or other means - such as taking forward the right to switch off through a statutory code of practice, which has been promised to be delivered alongside the Employment Rights Bill’s passage through Parliament and beyond Royal Assent (so could be at some point in 2025/early 2026), and amendments to National Minimum Wage in April 2025.   

3. Draft Equality (Race and Disability) Bill

Other reforms will be contained in the draft Equality (Race and Disability) Bill such as extending the pay gap reporting regime to ethnicity and disability, which will be subject to consultation and will be published in draft in the 2024/25 Parliamentary Session. Timings for this are therefore still uncertain, but one could anticipate that these reforms will be more likely in 2026/27.

4. Other longer term reforms

There will also be longer-term reforms, which the Government recognises will take longer to undertake and implement and will require a further review or call to evidence, with any changes to the law to follow.  

We have created the below table, colour coded as to when headline employment policies, based on their priority in the reform agenda, are likely to be introduced. We don’t have full implementation timelines yet but will keep this updated as this becomes clearer. 

At a glance

  • Red: High priority policy. Set out in the Employment Rights Bill, or a separate policy where early steps are already being taken, indicating it is high up the agenda.
  • Amber: Medium to high priority. Confirmed as either in the Equality (Race and Disability) Bill to be introduced in draft in the 2024/25 Parliamentary Session or via other means.
  • Green: Lower priority. Subject to a longer-term review or consultation as per the Next Steps document.

 

News & Views on the new Labour Government