Update: A Closer Look at the ERB Roadmap and the Future of Umbrella Regulation

Last week, The Department for Business and Trade (DBT) published the the Implementation Roadmap for the Employment Rights Bill. This is the timeline to which it intends to deliver the new package of workers rights and provides clarity to allow engagers to plan towards the new changes.

Highlights of the roadmap are set out below at the end of this article.

Umbrella update

At a stakeholder update meeting to announce the roadmap, we managed to obtain an update on the umbrella regulation work.

As you may know, the Employment Rights Bill (ERB) brings the first step towards new regulation for umbrella companies, primarily through an amendment to the Employment Agencies Act (EAA) 1973 defining them as employment businesses, which then feeds into the definition of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the Conduct Regs). This shift will bring umbrella companies under the oversight of the Employment Agency Standards (EAS) Inspectorate, and eventually the Fair Work Agency, as part of wider efforts to regulate the umbrella company market and enhance worker protections.

DBT announced earlier this year that there was to be a consultation on amending the Conduct Regs to more squarely accommodate umbrellas. But there was a potential issue over sequencing – would the definition in the EAA be extended before the Conduct Regs were amended, meaning that the existing suite of Conduct Regs could potentially apply to umbrellas from an earlier date?

The most recent version of the Bill can be found here. We can see from reading Clause 34 – Extension of Definition of Employment Business along with Clause 156 – Commencement that there is no date given for when the provision comes into effect. However DBT have helpfully now confirmed that the consultation on the Conduct Regs should happen later this year, with any changes coming into effect in 2027 – at the same time as the EAA definition is extended. We very much welcome this alignment and clarity.

Highlights of the roadmap

📍 Immediately fter the bill is passed

• Immediate repeal of the strikes (minimum service levels) act 2023 and the majority of the trade union act 2016 to create a better relationship with unions that will prevent the need for strikes.
• Protections against dismissal for taking industrial action to ensure workers can defend their rights without fear of losing their jobs.

📅 April 2026

• Collective redundancy protective award – doubling the maximum period of the protective award to provide stronger financial security for workers facing mass redundancies.
• ‘Day one’ paternity leave and unpaid parental leave to support working families from the very start of employment.
• Whistleblowing protections to encourage reporting of wrongdoing without fear of retaliation.
• Fair work agency established to enforce labour rights and promote fairness in the workplace.
• Statutory sick pay – removing the lower earnings limit and waiting period
• A package of trade union measures including simplifying trade union recognition process and electronic and workplace balloting to strengthen democracy and participation in the workplace.

📅 October 2026

• Ending unscrupulous fire and rehire practices to protect workers from being forced into worse terms under threat of dismissal.
• Regulations to establish the fair pay agreement adult social care negotiating body in England to raise standards and pay in the social care sector.
• Tightening tipping law - strengthen the law on tipping by mandating consultation with workers to ensure fairer tip allocation.
• Requiring employers to take “all reasonable steps” to prevent sexual harassment of their employees to create safer, more respectful workplaces.
• Introducing an obligation on employers not to permit the harassment of their employees by third parties to extend protections to all work environments, including public-facing roles.
• A package of trade union measures including new rights and protections for trade union representatives, extending protections against detriments for taking industrial action and strengthening trade unions’ right of access.

📅 2027

• Gender pay gap and menopause action plans (introduced on a voluntary basis in April 2026) to promote gender equality and support women’s health in the workplace.
• Enhanced dismissal protections for pregnant women and new mothers to safeguard job security during pregnancy, maternity leave and a return-to-work period.
• Further harassment protections, specifying reasonable steps which will help determine whether an employer has taken all reasonable steps to prevent sexual harassment to provide clearer guidance and stronger enforcement against harassment.
• Creating a modern framework for industrial relations to build a fairer, more collaborative approach to workplace relations.
• Bereavement leave to give workers time to grieve with job security.
• Ending the exploitative use of zero hours contracts to provide workers with stable hours and predictable income.
• ‘Day 1’ right to protection from unfair dismissal to ensure all workers are treated fairly from the start of employment.
• Improving access to flexible working to help people balance work with family, health, and other responsibilities.

The accompanying press release also advises that the Government will publish clear and comprehensive guidance in advance of the changes being implemented, to help businesses navigate the new measures.

What This Means for the Temporary Labour Market

For recruitment agencies and umbrella companies, the message is clear: change is coming. We welcome the government’s intention to regulate umbrella companies and bring greater transparency to the supply chain. SafeRec was built to help agencies and umbrellas prove their compliance—in real time—and these reforms only strengthen the case for proactive, technology-driven oversight.

Over the coming months, we’ll share our views on:

• What the Conduct Regulations should look like post-reform
• How changes like Statutory Sick Pay will affect umbrella company obligations
• What agencies need to do now to prepare for 2027