With Parliament in its summer recess, now is a good time to take stock of where employment law reform actually stands, and to look ahead to what promises to be a busy autumn and new year.
Many of the reforms under the Employment Rights Act 2025 (ERA) are still to come into force. With a new prime minister now in Number 10, attention is turning to what Andy Burnham’s appointment might mean for the direction of employment law from here.
In this article:
- Will Andy Burnham slow down employment law reform?
- What is the Greater Manchester Good Employment Charter?
- Which employment status reform will happen next?
- Should employers expect major change this autumn?
- How can HRCentral help you prepare?
Will the new Prime Minister slow down employment law reform?
The ERA was introduced under the previous administration, but there is little sign that the new government intends to slow it down. The new Prime Minister has reaffirmed Labour’s commitment to its 2024 manifesto, and ministers continue to stress their determination to implement the ERA measures that are still outstanding.
That said, his appointment has prompted a fair bit of debate internally here at HRCentral, including our wider legal circle about whether employment rights could go even further under his leadership. For a sense of where his instincts lie, it’s worth looking at his record as mayor of Greater Manchester.
What is the Greater Manchester Good Employment Charter?
One of Burnham’s flagship initiatives as mayor was the Greater Manchester Good Employment Charter, which promotes seven characteristics of good employment: secure work, flexible working, fair pay, employee voice, inclusive recruitment, effective people management, and health and wellbeing.
Several of these themes are already reflected in the ERA, which gives a useful steer on the areas where employers are most likely to see further change, and the areas where the current settlement is likely to hold.
- Secure work. The charter’s emphasis on predictable hours and limiting zero hours contracts lines up closely with forthcoming ERA reforms. Its expectation of up to four weeks’ notice of shifts may be a useful signal of Burnham’s thinking as consultation continues on what counts as ‘reasonable notice’ under the new regime.
- Flexible working. Already being strengthened under the ERA, and further major reform in this area currently looks unlikely.
- Fair pay. The charter encourages payment of the real living wage, though turning that ambition into a legal requirement would raise really practical and economic challenges in the current climate.
- Employee voice. The charter’s focus on union recognition and workforce engagement mirrors ERA measures expanding trade union access rights. Further change to the industrial relations landscape looks unlikely in the short term, although his close relationship with the trade unions may indicate there is more to come.
- Inclusive recruitment. Our new PM has consistently championed diversity and inclusion, alongside measures to really improve opportunities for young people. Recent announcements on technical education pathways and additional apprenticeships suggest youth employment will thankfully be a key priority.
- Health and wellbeing. There has been a clear interest in reducing economic inactivity linked to long term sickness. Current fit note reform pilots could well signal further changes aimed at supporting people to remain in, or return to, work.
Which employment status reform will happen next?
Labour’s 2024 manifesto proposed replacing the current three tier employment status framework, employee, worker, and self-employed, with a simpler two-tier model. That change wasn’t included in the ERA, but with renewed calls for reform, the new Prime Minister may well revisit it in due course. If it happens, this would be a significant shift for any business that engages contractors or relies on flexible arrangements, so it’s worth keeping on the radar, and when the new rulings land, getting appropriate advice on how to proceed.
Should employers expect major change this autumn?
Probably not, at least not in the short term. With a full agenda already on his desk, it’s reasonable to assume that the new PM will stick to the existing ERA implementation timetable rather than introduce headline grabbing new legislation straight away.
If he goes on to win a second election on his own manifesto, the next chapter of employment law may well look different. For now, that remains a matter of political speculation rather than something for employers to be concerned about today.
How can HRCentral help you prepare?
Whatever direction the government takes next, the themes behind it, secure work, fair pay, employee voice, inclusive recruitment, effective people management, and health and wellbeing, are exactly the areas we work in every day. Here’s how our services map onto each one.
- Secure work and contract reform. Our HR Support and Consultancy service covers bespoke contracts, policies and handbooks, so your paperwork keeps pace as the rules on shift notice and zero hours arrangements develop.
- Fair pay. Through HR Strategy and Process, we advise on pay and benefits and salary benchmarking, helping you set fair, defensible pay structures and salary bands ahead of any change to the legal minimum, and in line with the market rates.
- Employee voice. We support employee engagement and retention strategy as part of HR Strategy and Process, and employee engagement surveys turn workforce sentiment into an actionable plan, well ahead of any expansion of union access rights.
- Inclusive recruitment. Our Recruitment and Search service and partnership with hireful covers hiring strategy, job design, headhunting and a branded Applicant Tracking System, helping you widen your talent pool and build genuinely inclusive hiring processes, including for apprentices, graduate recruitment, assessment centres, alongside the usual senior and engineering, scientific and technical hires we are renowned for.
- Effective people management. Through Performance Management and Development, we coach managers, using DISC and other psychometric tools such as SHL’s OPQ; particularly useful to analyse the self-awareness and training needs of those promoted on performance but never trained to lead, so your people managers are equipped for a more scrutinised employment landscape.
- Health and wellbeing. Our Health and Safety Consultancy partners cover risk assessments, workplace wellbeing culture and ongoing compliance support, and we work with occupational health partners to support staff dealing with long term sickness or returning to work. We support with return-to-work meetings to ensure that reasonable adjustments are identified and implemented in the workplace.
- Employment status reform. If the three tier employment status framework is revisited, our HR Audit and Legal Compliance and Corporate Exit and HR Due Diligence services already include a full review of contractor, worker and employee status, so you’ll know exactly where you stand before any change lands. We can assist with the implementation of any employment changes as and when they become legislation, all at our usual hourly rates, as opposed to retainers.
What should employers do now?
The sensible approach is the same one we’d recommend regardless of who is in Number 10, get ahead of the reforms that are already confirmed, rather than waiting to see what might come next. Your policies if not amended will be out of date!
- Review your contracts and handbooks against the ERA reforms already scheduled for the rest of 2026 and into 2027.
- If you rely on zero hours or casual arrangements, keep a close eye on the developing rules around notice of shifts.
- If your workforce includes contractors or self-employed workers, keep employment status reform on your radar, even though nothing is confirmed yet.
- Don’t wait for a headline announcement. Most ERA change is arriving on a known timetable, so there’s no reason to be caught out.
Frequently asked questions
What is the Employment Rights Act 2025?
The ERA is the government’s flagship package of employment law reform, covering areas including unfair dismissal, statutory sick pay, flexible working, zero hours contracts and trade union access. Some measures are already in force, with further reforms due in autumn 2026 and through 2027.
Is Andy Burnham likely to change employment law more than Keir Starmer planned?
There’s no confirmed change of direction so far. Burnham has committed to delivering the ERA as planned, though his record as mayor of Greater Manchester, particularly the Good Employment Charter, suggests where he may look to go further if his government wins a mandate of its own.
What is the Greater Manchester Good Employment Charter?
It’s a voluntary employer standard launched by Andy Burnham as mayor, built around seven characteristics of good employment: secure work, flexible working, fair pay, employee voice, inclusive recruitment, effective people management, and health and wellbeing.
Could employment status law change under the new government?
Possibly. Labour’s 2024 manifesto proposed a simpler two-tier employment status model, replacing employee, worker and self-employed. It wasn’t included in the ERA, but renewed calls for reform mean it’s worth watching, especially if your business engages contractors.
How can my business prepare for upcoming ERA reforms?
Start by reviewing your contracts, handbooks and policies against the reforms already scheduled, rather than waiting for further announcements. Most ERA changes are arriving on a known timetable, so there’s no need to be caught out.
Not sure which ERA reforms affect your business first, or how ready your contracts and policies are? Speak to the HRCentral team and we’ll walk through what’s already confirmed, what’s worth watching, and exactly what to prioritise before the autumn, drawing on the full range of our HR, recruitment, health and safety, and due diligence services.
For support, please contact us or email enquiries@hrcentral.co.uk
