The Government has unveiled new guidance to help employers prepare for major changes to employment law, as ministers seek to fix what they describe as a “broken labour market” while supporting business growth.

The guidance follows the passing of the Employment Rights Act 2025, which will introduce a series of reforms from April aimed at establishing a fairer baseline of workplace protections. Ministers argue the changes reflect practices already adopted by many employers and will deliver long-term productivity and staff retention benefits.

As part of the rollout, the Government has launched a new online hub, providing free, practical support for the UK’s estimated 1.4 million employers. The site includes clear timelines, summaries of upcoming changes, actions businesses need to take, and links to further guidance.

From April, statutory sick pay will become payable from the first day of sickness absence, while new “day one” rights will be introduced for parental leave and paternity leave. Further reforms will be phased in gradually over a two-year period, a move the Government says is designed to give employers time to adapt and implement changes correctly.

Employment Rights Minister Kate Dearden said the reforms were central to the Government’s economic strategy.

“Creating a modern, fair and dynamic labour market is central to this Government’s plan for growth,” she said. “We want to make it easier for employers to find the people they need, while ensuring that work pays and feels secure.

“Through clear guidance, we are giving businesses the practical support they need to understand these changes and get things right first time. By improving fairness and security at work, we boost productivity, strengthen retention and support businesses to succeed.”

The Government said it has already held nearly 350 engagements with businesses as part of its Plan to Make Work Pay, with further consultation planned as implementation continues. Officials said this engagement is shaping both the reforms themselves and the guidance being provided to employers.

Additional support will also be available through Acas and sector bodies.

Acas chief executive Niall Mackenzie said: “We are proud to support the Government’s awareness campaign to help businesses understand and prepare for these employment law changes, which will affect all workplaces.

“Acas has advice, webinars and training available to help employers and workers prepare, and we will continue to update our guidance as the new laws are implemented. Being ready for change can help prevent disputes and support healthy working relationships.”

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.