The biggest shake-up in UK staffing in decades.

If you’re an EOR, employment agency, or operate in staffing, this is your wake-up call. The proposed Employment Rights Bill could significantly change how you hire, manage, and support workers in the UK.

Here are some of the changes:

- EORs and umbrella companies will now fall explicitly under the Employment Agencies Act 1973. No more grey areas, direct enforcement by the EAS Inspectorate.

- Unfair dismissal becoming a Day 1 right: the current two-year qualifying period will be scrapped. A new statutory probation period will be introduced.

- Zero-hours contracts under pressure: introduction to guaranteed hours, fair notice of shifts, and compensation for last-minute cancellations.

- Parental rights from Day 1: Paternity Leave and Unpaid Parental Leave will become available immediately, without the need for a minimum employment period.

- Third-party harassment: employers will be made legally responsible for failing to prevent harassment by third parties (e.g. clients).

- Statutory Sick Pay: the current three-day waiting period for Statutory Sick Pay will be removed.

When?

The Bill is likely to receive Royal Assent in July, officially becoming law. However, these reforms are unlikely to take effect before 2026. Timeframes and transition guidance are expected to allow businesses time to prepare.

What now?

These proposals may carry significant implications for hiring practices, worker rights, and operational processes. Early awareness = better preparation.

At PEO Legal, we provide legal and compliance advice for professional employer organisations and staffing companies around the world. If you want advice on global statutory sick pay, or any other point of cross-border law, contact us, today.