Employment Laws have not kept pace with modern working patterns. Too many workers lack the protections they need at work, while responsible businesses face unfair competition from those willing to exploit gaps in outdated employment laws. The Plan to Make Work Pay is modernising employment rights to respond to a changing labour market and create a fairer, more secure economy for workers and businesses. More than 18 million employees are expected to benefit from the new protections. We are delivering these reforms in partnership with businesses, trade unions, public sector employers and civil society through extensive engagement and consultation, helping to ensure the changes work in practice for employers and workers.

Following my most recent update to Parliament, the UK Government is today announcing further progress in the implementation of the Employment Rights Act, as part of the Plan to Make Work Pay with the launch of a consultation on a new Code of Practice for Fire and Rehire alongside the publication of Government responses on Enhanced Protections for Pregnant Workers, and Fire and Rehire regulations.

Consultation and Government Response 1: Fire and Rehire

The Employment Rights Act 2025 will make it automatically unfair to dismiss an employee in order to change certain core contract terms. These terms include reductions to pay or leave, changes to working hours or pension arrangements, or specified changes to shift patterns (‘restricted variations’). To avoid unnecessary redundancies, the measures will not apply to employers who meet a narrow exemption for financial difficulties.

A consultation on fire and rehire- changes to expenses, benefits and shift patterns ran from 4 February to 1 April 2026. It sought views on which expenses and benefits should be excluded from the scope of the restricted variation of reductions to pay, and whether there are any types of shift pattern changes which should also be protected as a restricted variation.

The Government response confirms the final policy approach for drafting the regulations:

• Expenses and benefits in kind will be excluded from the restricted variation of definition of sums payable to an employee in connection with the employment, aside from a defined list, to include, travel and accommodation expenses incurred in performance of your role and long-term accommodation as a benefit in kind.
• Only extreme (as defined) shift pattern changes (day to night and vice versa, and weekday to weekend and vice versa) are in scope of the restricted variation of the timing or duration of a shift.

The Government response was published on 22 October 2026 and, subject to debates in Parliament, regulations will come into force in March 2027.

The Government is committed to ending the scourges of fire and rehire and fire and replace. We will actively monitor how the fire and rehire provisions operate in practice on an ongoing basis, including the extent to which the new legislation shape employer approaches and organisational behaviour. If fire and rehire practices continue, Government will act urgently to put a stop to them. This includes, where needed, making use of powers in the Employment Rights Act to legislate, including expanding the scope of restricted variations. Likewise, Government would be prepared to put in place further legislative measures in order to meet our commitment to end fire and rehire and fire and replace - including introducing interim injunctions and interim relief.

The Employment Rights Act 2025 aims to tackle unscrupulous fire and rehire and fire and replace practices. The Government is consulting on the draft of the Code of Practice on dismissal and re-engagement which provides practical guidance on preventing, managing and resolving conflict and dispute when contract changes cannot be agreed and an employer is considering making unilateral changes to contract terms. The Code outlines how the statutory protections against fire and rehire and fire and replace are expected to apply. It also sets expectations for reasonable conduct from all parties.

This consultation will be open for 8 weeks, closing on 17 December 2026.

The existing Code of Practice on fire and rehire will be revoked simultaneously to the regulations coming into force in March 2027. The new Code will come into effect in summer 2027.

Government Response 2: Enhanced Protections for Pregnant Workers

Despite existing legal protections related to pregnancy and maternity, many women continue to face a significant and unique risk to their job security during pregnancy, Maternity Leave, and in their return to work. In our Plan to Make Work Pay, we committed to strengthening protections for pregnant women by making it unlawful to dismiss a woman who is pregnant, on Maternity Leave or has recently returned to work, except in specific circumstances. The Employment Rights Act 2025 provides powers for the Government to make provision about dismissal during or after the protected period of pregnancy and we intend to use these powers to fulfil the Make Work Pay commitment to strengthen dismissal protections for pregnant women and new mothers.

The Government consulted on proposals to strengthen dismissal protections from 23 October 2025 – 15 January 2026. The consultation sought views on how enhanced dismissal protections for pregnant women, new mothers and other new parents should operate in practice. This included what circumstances dismissal should be allowed, when the protections should start and end, and how the framework should apply across different forms of family leave. It also invited views on implementation considerations, including guidance, awareness and support for employers.

The Government response was published on 22 October and sets out the final policy decisions and its next steps for implementation. Measures set out in the response include:

• Strengthening the legal framework governing dismissal during the protected period; and
• Ensuring comparable protections are available to employees taking other qualifying forms of leave.

When implemented, these reforms will help ensure dismissal during the protected period is proportionate and is considered only after employers have appropriately explored reasonable alternatives. The stricter legal standard will create stronger protections against dismissal for pregnant women, new mothers and other new parents and fairly balance employer and employee interests.

The detail of the enhanced dismissal protections will be delivered in secondary legislation and the Government intends for the measures to come into force in October 2027.

Next Steps for consultation

The Government has committed to delivering this change in partnership with businesses, trade unions, employers, and civil society. That’s why we’re undertaking full and comprehensive consultation with these groups on key changes. By delivering this change together, we're backing businesses who do the right thing and giving hardworking people the job security and opportunities they deserve. The Government will continue to keep Parliament updated on the implementation of the Employment Rights Act and the Plan to Make Work Pay.