Paternity leave and ordinary parental leave (or unpaid parental leave) will become a 'day-one right' for employees. Currently, someone must have worked for their employer for 26 weeks.
Statutory sick pay (SSP) will be paid from the first day of illness, instead of the fourth day. The lower earnings limit will be removed – currently, workers must earn a minimum amount to be eligible for statutory sick pay.
Collective redundancy protective award: the maximum 'protective award' for failure to consult in collective redundancy will double from 90 days' pay to 180 days' pay.
Whistleblowing protections for sexual harassment: Protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure.
Gender pay gap and menopause action plans: Employers will need to create action plans around menopause and gender pay gaps. These will be voluntary from 6 April 2026 but will become mandatory sometime in 2027.
Trade union recognition: How a trade union can be recognised in a workplace will be simplified.
Fair Work Agency will be established to protect workers and enforce employment rights.
Joanne Thomas – Usdaw general secretary says: “The Employment Rights Act is the biggest uplift in workers’ rights in a generation and delivers on many of the campaigns Usdaw has been running over the years. Retail employment is notoriously dogged by precarious employment practices and many retail workers absolutely rely on basic employment rights, particularly with non-unionised employers. So, the Act is very important to staff and crucially helps to protect decent employers from being undercut by the worst who exploit workers.
“As we get into the details of implementation for the remaining parts of ERA, it will be essential that there are no loopholes for unscrupulous employers to exploit, and that all workers benefit from these new rights. We will continue to engage with the Government on this through the consultation process to ensure that they deliver the manifesto commitment of a New Deal for Workers in full.
“Tackling precarious employment is good for the economy, growth and individual workers who should have the decency of a wage that they can live off. Too many of our key workers are in low-paid, insecure work. They deserve more than being applauded in a pandemic; basic employment rights enforceable by law are the least the nation can do for these heroes who do so much for society and our communities. Boris Johnson promised to ‘build back better’ after the pandemic and failed, Labour is now doing just that.
“All of these new legal rights will make a real difference if they are properly enforced, and the Government’s new Fair Work Agency provides a single body to help achieve that. However, the role of trade unions in workplaces is also crucial and the Government’s changes to trade union access and recognition will help ensure workers have a strong and effective voice at work. Employers who want to treat their staff with decency and not exploit workers have nothing to fear from this. We urge retailers not to wait for the law to change and engage with Usdaw to secure a recognition agreement through positive and productive discussions.”
Notes for editors:
Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest with around 370,000 members. Most Usdaw members work in the retail sector, but the union also represents many workers in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk
Employment Rights Act: www.legislation.gov.uk/ukpga/2025/36/contents
For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Bluesky @usdawunion.bsky.social and Twitter/X @UsdawUnion