Prime Minister Keir Starmer has declared a decisive end to the erosion of workers' rights, as the Labour government's landmark employment bill officially received Royal Assent and became law on 18 December 2025.
A New Deal for Britain's Workforce
In a significant policy shift from the previous Conservative administration, the new legislation promises to transform the lives of millions. Starmer, writing for The Mirror, positioned the law as a core delivery of his government's promise to stand with hardworking Britons. He stated it represents a fundamental modernisation of the workplace, finally bringing UK employment practices into the 21st century.
The Prime Minister was scathing about the record of the Tory years, highlighting that the number of people on exploitative zero-hours contracts had reached one million, while damaging practices like 'fire and rehire' were allowed to proliferate. "That ends now," he asserted.
Key Protections and Who Benefits
The law introduces a suite of new rights designed to provide security and respect for employees. Central to the reforms is the extension of basic entitlements from the very first day of employment.
From April, 1.3 million of the lowest-paid workers will gain access to Statutory Sick Pay for the first time. This change aims to prevent a repeat of pandemic-era scandals where care workers and others faced the impossible choice of going to work ill or losing a day's pay.
Furthermore, the legislation mandates that employers can no longer keep staff on zero-hours contracts if they work regular hours. This will result in an automatic offer of a contract with guaranteed hours, a change set to benefit over 2 million workers. These employees will also be entitled to compensation if their shifts are cancelled at short notice.
Tackling Exploitation and Silencing
Beyond insecure contracts, the law clamps down on other dubious practices. It outlaws 'fire and rehire' tactics, where companies dismiss staff only to re-employ them on worse terms.
In a major victory for campaigners, the bill also prohibits employers from using non-disclosure agreements (NDAs) as 'gag orders' to stop victims of workplace sexual harassment from speaking out.
Starmer emphasised that the overhaul is not just morally right but economically essential. "It's the best way to build a strong economy," he wrote, linking the new rights to the government's broader mission of tackling the cost-of-living crisis through measures like cutting energy bills and raising the minimum wage.
The Prime Minister's message was clear: this law is for the cleaners, carers, drivers, shop workers, and all those who form the backbone of the nation. "We're fighting for you," he concluded, "and today shows that we're delivering."
