MP Cat Smith hails benefits of new Employment Rights Act - including boost for new dads

Ms Smith, Labour MP for Lancaster and Wyre, says thousands of new fathers and partners have now gained the right to paternity leave from the first day in a new job, rather than having to wait six months to be eligible.

The Act, which formally came effect on April 6, has been called the biggest shift in UK workers’ rights in a generation due to its sweeping reforms aimed at increasing job security, strengthening trade unions, and banning “exploitative” practices.

It implements almost 30 employment reforms including ‘day one’ rights for sick pay/leave, banning ‘fire and rehire’ tactics, and strengthening protections against harassment

However, it has not been without its critics, with opposition leaders and business groups raising concerns about the major cost to companies.

Ms Smith says the benefits to employees will be significant in numerous key ways.

What Cat Smith says

As the Act came into effect, she stated: “32,000 new fathers and partners have now gained the right to paternity leave from the first day in a new job, rather than having to wait six months to be eligible.

“From today, parents will also be granted a new right to time off following the death of a child’s mother or primary adopter, through new Bereaved Partner’s Paternity Leave.

“New day one rights to unpaid parental leave have also begun, which will benefit 1.5 million working parents across the UK who will no longer have to wait a year before qualifying.

“From today, employees will also receive Statutory Sick Pay from their first day of sickness absence, rather than having to wait until the fourth day, regardless of how much they’re getting paid.

“The Fair Work Agency also launches today, to ensure employment rights can be enforced more effectively.”

Labour says millions of employees will benefit from the reforms.

What does the Act include?

• Zero-Hours Contracts: Ends exploitative contracts by ensuring rights to guaranteed hours based on regular working patterns and pay for cancelled shifts.
• Unfair Dismissal: Reduces the qualifying period for protection from unfair dismissal from two years to six months.
• Day One Rights: Removes qualifying periods for key rights like paternity leave, parental leave, and statutory sick pay (removing the earnings threshold/waiting days).
• Fire and Rehire: Restricts unscrupulous fire and rehire/replace tactics by making them generally “automatically unfair”.
• Harassment: Strengthens worker protection by requiring employers to take “all reasonable steps” to prevent sexual harassment, including from third parties.
• Trade Union Reform: Strengthens trade union rights, including easing access for union recognition and simplifying industrial action procedures.
• Implementation Timeline: Phased implementation occurs over 2026 and 2027, with the first changes enacted on February 18, 2026. GOV.UK +8

What do the critics say?

There were initial concerns that that implementing the party’s measures to improve workers’ rights ( including day-one employment rights and banning zero-hours contracts) would cost firms up to £5bn a year.

But an updated analysis in January, which took into account a number of key revisions by ministers, said it would now cost companies £1bn a year.

Last year the government made a major concession, scrapping proposals to give all workers the right to claim unfair dismissal from their first day in a job. Instead, it will implement enhanced protections after six months in employment.

But Kate Shoesmith, director of policy at the British Chambers of Commerce, said the government’s latest £1bn impact assessment was “likely to be a massive underestimate” of the costs.

“The impact figure doesn’t adequately account for the harder-to-quantify costs. Those include staff time for understanding and implementing new processes or explaining these to colleagues.

“Concessions such as introducing the six-month qualifying period will reduce costs – but not on the scale this latest assessment suggests.”