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Employment Rights Bill: What Contractors and Recruitment Businesses Need to Know

The UK Government has published its roadmap for implementing the Employment Rights Bill (ERB), legislation that will significantly reshape how employment protections are applied across the UK labour market, especially for temporary, flexible, and agency workers.

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The UK Government has published its roadmap for implementing the Employment Rights Bill (ERB), legislation that will significantly reshape how employment protections are applied across the UK labour market, especially for temporary, flexible, and agency workers.

At Champion, we're taking a proactive approach to understanding the implications of these changes for both recruitment businesses and contractors, and we're committed to keeping our partners and workers informed as further details emerge.

What Is the Employment Rights Bill?

The ERB is part of the government's plan to make work pay and improve working conditions for all workers, including agency, freelancers, and those employed via umbrella companies.

It aims to introduce stronger rights, better protections, and fairer enforcement for all workers.

ERB - Key Changes and When to Expect Them

The roadmap outlines a phased approach over the next two years with a series of consultations and introductions. The timeline for implementations is as follows:

2025 will mark the beginning of several consultations on issues such as protecting employees from unfair dismissal from day one, regulating fire and rehire practices, regulating umbrella companies, and ending the exploitative use of Zero-Hours Contracts (ZHCs).

In 2026, a consultation on flexible working will take place, alongside the introduction of day-one paternity leave and unpaid parental leave. We should also see the establishment of the Fair Work Agency, the new body responsible for enforcing employment rights and regulating umbrella companies.

2027 will see the introduction of improved rights for pregnant workers, an end to exploitative zero-hours contracts, and, significantly, the long-awaited regulation of umbrella companies.

What the ERB Means for Recruitment Agencies and Contractors

For Recruitment Businesses:

  • There will be greater scrutiny over how temporary workers are engaged and treated, both by your agency and your end clients.
  • Requests from workers for more predictable hours will need to be processed fairly and legally.
  • Contracts and processes for day one rights, shift allocation and some other statutory benefits will need to be reviewed and aligned with new rules and obligations.

For Contractors and Temporary Workers:

  • The ERB is designed to provide more security and fairness, particularly for individuals working irregular hours or without a guaranteed work schedule.
  • Workers will have a right and formal route to request consistent hours and clearer shift patterns.
  • You'll also benefit from stronger enforcement mechanisms if your employment rights are not upheld.

Champion's Response to the ERB Roadmap

At Champion, we've always believed that flexibility should never come at the cost of fairness or compliance. We're already reviewing our internal practices and speaking with our agency partners to ensure we're prepared for what the Employment Rights Bill will bring.

We'll continue to monitor developments, respond to consultations, and provide guidance to our clients and contractors as more details become available.

If you're looking to understand how these changes could affect your contractor base, or if you're a worker with questions about your rights, contact the team at Champion at info@championcontractors.co.uk or call 0161 703 2549.