Overview
- The Employment Rights Act, passed in December, will be phased in over two years after ministers replaced promised day‑one unfair dismissal claims with a six‑month threshold.
- Officials now estimate roughly 18 million workers will benefit, with modelling indicating a 0.04% lift to GDP and a 0.1% increase in employment.
- Tribunal backlogs already stand at a record 515,000 open claims with single claims up 33% year on year, prompting the Law Society to demand resources as ministers tout a Fair Work Agency, more judges, legal officers and upgraded case management.
- The revised £1bn cost follows concessions and delays, yet business groups and Conservative politicians argue the figure understates burdens and warn of weaker hiring and investment.
- The law expands day‑one sick pay and paternity, unpaid parental and bereavement leave, curbs zero‑hours contracts, strengthens union access with higher fines, removes the unfair‑dismissal compensation cap and extends claim deadlines to six months.