The UK is preparing for one of the most significant shifts in employment protections in recent years – The Employment Rights Act 2025 (ERA). This Act is set to introduce new rights around job security, shift notice and guaranteed hours, and employers are beginning to assess what these changes mean for their workforce and operations.
A welcome step to tackling insecure work, but our Living Hours accreditation already goes a step beyond these ambitions, offering a gold standard framework for employers that want to offer shift periods and hours that provide security and stability for their employees.
We break down the key differences between the ERA and Living Hours, including why insecure work is a problem that will not be solved through this Act alone, and why forward-thinking employers in their hundreds are choosing to become Living Hours accredited, playing an active role in shaping the future of work, rather than simply responding to it.
What the Employment Rights Act 2025 looks to introduce
The ERA aims to tackle insecure work by introducing new minimum rights. What this looks like in practice is new rights to some workers of a guaranteed hours contract, and to reasonable notice of shifts, with some payment to be made to workers for shifts changed at short notice. This all sounds like similar protections offered by Living Hours, but importantly, not to the same degree.
Who will benefit from the ERA?
The government estimates that 2.1 million workers may benefit from the new measures. But as our research indicates, the scale of insecure work is far larger than this number, with:
- 6.1 million workers in insecure work, of which 3.4 million are in low paid insecure work
- 55% of shift workers receive less than one week’s notice of shifts
But as Michelle, a carer receiving Living Hours, puts it
“It’s a weight off my shoulders. I can plan ahead now, I know what I’m bringing in each month, and I feel like part of the core team. It’s made such a difference.”
And Katie says that prior to getting Living Hours:
“I worked in two roles on a zero hours contract. This meant if there wasn’t enough work available, I had no guaranteed income or hours. With all the bills and financial responsibilities I had, this was a very stressful situation to be in and left no room for financial planning. Since getting Living Hours at Thomas Kneale, I have been on a full-time contract, I feel very well settled in this role and the certainty has brought me significant benefits.
For people like Michelle and Katie, the ERA is a crucial step—but not a complete solution and wouldn't offer as much security as our Living Hours accreditation does. The ERA also won’t reach as many workers facing insecure working practices.
Living Hours accreditation: A higher standard for secure work
While the ERA sets a legal baseline, Living Hours is a voluntary accreditation for employers designed to deliver deeper, more meaningful security for workers. It is based on consultation with over 700 community leaders, employers, unions and experts.
| Area | Employment Rights Act 2025 - all to be confirmed | Living Hours |
|---|---|---|
| Status | Legal requirement for employers from 2026–27 (with Living Hours related measures introduced in 2027.) | Voluntary accreditation for employers wanting to go further |
| How is it set? | To be determined through public and stakeholder consultation in 2026. | Based on listening with over 700 community leaders, employers, trade unions and experts. |
| Who is covered? | Pending consultation. Likely to include: zero hours contracted workers, ‘low hours workers’ to be defined, and possibly some shift workers. | All lower paid workers without guaranteed hours |
| What is provided? | “Reasonable shift notice” (definition still to be set; disputes may go to tribunal). Payment for short notice cancellations (details pending) | Four weeks’ notice of shifts and full pay for shifts cancelled with less than four weeks’ notice |
| No minimum hours protection | Guaranteed minimum of 16 hours per week for anyone who wants it | |
| ‘Guaranteed Hours Offer’ based on regular hours | Contract reflecting actual hours worked over a 12-week reference period |
*As the requirements of employers in these areas will not become clear until further consultation and the creation of secondary legislation and statutory guidance, this table reflects our best current analysis of the differences between Living Hours and the Act's provisions.
In short, the ERA provides a legal floor; Living Hours provides a stretching standard for employers that offers real stability for workers who need to be able to plan their lives.
Why employers are choosing Living Hours now
Nearly 300 employers are accredited Living Hours Employers, and already well ahead of the ERA’s implementation. They are already demonstrating that secure work is not only achievable but beneficial. These employers, which include Severn Trent, Aviva and the West Brom Building Society, provide a contract that reflects hours worked, ensure workers have a guaranteed minimum of 16 hours work a week, and a month's notice of shift patterns.
As well as being the right thing to do, Living Hours Employers report numerous business benefits to their commitment, including happier and more productive employees, improved recruitment and retention rates and reduced sickness absence.
Living Hours is your chance to stand out in a changing landscape
When the Employment Right Act comes into force, many organisations will be racing to meet the new minimum requirements. Employers who have already adopted Living Hours will be ahead of the compliance curve, with a proven track record of responsible employment.
Living Hours also allows your organisation to play a role in shaping the future of work, rather than simply responding to it.
Become a Living Hours Employer
Join a movement of thousands of responsible employers driving up standards of good work so that everyone has a decent standard of living now and in the future, and get in touch about becoming Living Hours accredited.
The Living Wage Foundation team will support you through the process—no matter where you are on your journey to providing secure working practices. Getting started now means you can build robust systems that take you beyond ERA compliance.
Find out more about Living Hours
Find out more about Living Hours and becoming accredited.
