Overview
- Millions gain protections after Monday's rollout of the Employment Rights Act, which started day‑one sick pay and day‑one paternity and unpaid parental leave.
- The Fair Work Agency, which will police pay and leave rules, launched Tuesday with powers to investigate breaches and issue civil penalties.
- Unions cite TUC figures saying up to 9.6 million people will benefit, including about 1.2 million newly eligible for sick pay because the earnings test ended.
- Sick pay now covers up to 28 weeks at 80% of average weekly earnings or £123.25 a week, whichever is lower, and tribunals can award up to 180 days’ pay for collective redundancy breaches.
- Ministers forecast £1bn–£5bn a year in direct business costs at full rollout, while the CBI, FSB and recruiters warn the changes could curb hiring or raise prices this year and next.