Over five million workers across London will see changes under the new Employment Rights Act, including day-one parental leave, stronger sick pay, and a significant extension of eligibility for paternity leave.
The changes, designed to improve job security and fairness, also introduce a new bereaved partner paternity leave provision and will come into effect this April.
Prime minister Sir Keir Starmer said: “For too long, working people were left without the basic rights and security they deserve.
“That ends now.
“The changes we’re bringing in will mean every new parent can properly take time off when they have a child, and no one is forced to work while ill just to make ends meet.
“This is about giving working families the support they need to balance work, health and the cost of living.
“We’re delivering a modern deal for workers.
“Stronger sick pay, parental leave from day one, and protections that put dignity back at the heart of work.
“Because when we respect and reward those who keep Britain running, we build a stronger economy for everyone.”
An estimated 32,000 more fathers each year will now be able to access paternity leave immediately, matching rights already enjoyed by mothers.
The act also grants employees the right to unpaid parental leave from their first day in a new job.
This extension is expected to benefit 1.5 million parents and could help reintroduce more people into the workforce—particularly those caring for children—potentially boosting economic output by £150 million annually.
The government says these reforms are part of its broader “Plan to Make Work Pay,” which aims to support lower-paid, insecure, or unfairly treated workers.
The Employment Rights Act also restricts exploitative practices such as fire and rehire and expands access to flexible working and guaranteed hours contracts.
The government says these reforms could improve worker wellbeing, productivity, and deliver positive though modest economic growth.
Business secretary Peter Kyle said: “No one should have to worry about whether they can take time off when their baby arrives, or lose pay simply because they’ve fallen ill.
“Our improvements to sick pay and parental leave are about giving workers and their families the security they deserve.
“They will ensure our drive for growth reaches everyone through providing secure, fair paying jobs and giving support to people when they need it most.”
The new Bereaved Partner’s Paternity Leave, following campaigning from individuals such as Aaron Horsey, will offer up to 52 weeks of leave to fathers and partners who lose their partner before their child’s first birthday.
Mr Horsey said: “Bereaved Partner’s Paternity Leave ensures that new parents and their employers have a clear route for support at one of the most difficult moments imaginable.
“It gives them the time and space they need to grieve, care, and begin to rebuild their lives with dignity.
“By embedding this protection in law, it shows how listening to lived experience can lead to practical, compassionate change that will support families for generations to come.”
Additional changes will extend Statutory Sick Pay (SSP) to up to 1.3 million lower-paid or part-time workers, removing the previous three-day waiting period and providing support from the first day of illness.
Paul Nowak, general secretary of the Trades Union Congress (TUC), said: “The Employment Rights Act will deliver vital common-sense reforms for millions of people across the country – including sick pay for all workers and better leave for parents.
“Britain will now be brought into line with other countries where workers already have better protections.
“And crucially, the legislation will give working people the higher living standards and secure incomes that are needed to build a decent life.”
