The Employment Rights Act, which received Royal Assent this week, is expected to benefit more than 15 million workers.
Key reforms include day one paternity, parental and bereavement leave; strengthened sick pay entitlement; protection for pregnant employees; an end to exploitative zero hours contracts; and stronger safeguards against unfair dismissal from six months.
Sue Robinson, chief executive of the NFDA, said: “The Employment Rights Bill marks a significant shift in UK employment law.
"We are pleased to see a sensible compromise on the qualifying period for unfair dismissal claims.
"While the original proposals could have had unintended consequences for hiring, the six month threshold, which we actively lobbied for, strikes a fair balance between protecting employees and supporting business confidence.
"This was our primary concern, and we welcome the resolution."
Robinson also welcomed reforms to zero hour contracts.
"We were delighted to see the Bill include changes to these arrangements, providing greater clarity and fairness for both employers and employees,” she added.
The Government said the reforms will be phased in over two years, with further consultation to ensure businesses have time to adapt.
Robinson said the NFDA will continue to monitor the implementation of the Act and support members through the transition. “We encourage members to contact us with any questions during this period,” she added.
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