After a protracted period of parliamentary ping-pong, the
Employment Rights Act was finally agreed on 16 December 2025.
This introduces sweeping changes that are set to reshape the
landscape of employment law. By topic, our dashboard clarifies the
current legal position and what it will look like under the
Act.
In terms of when these changes will take effect, on 1 July 2025
the government published a roadmap for the delivery, ending
speculation on potential implementation dates. The dates in our
dashboard are based on this roadmap, as modified to reflect
milestones which have already been missed. See our timeline for an overview of
implementation.
Additional reforms outside the scope of the Act were outlined in
the government’s ‘Next Steps to Make Work Pay’. These
are also detailed here.
Unfair dismissal and probationary periods
Right not to be unfairly dismissed – reduced qualifying
period
Now: Employees need to work for 2 years before
they have the right not to be unfairly dismissed. Employers must
give written reasons for dismissal to employees with 2 years’
service on request.
What the Act says: Although Labour originally
promised day 1 unfair dismissal rights, during parliamentary
ping-pong, the government accepted a House of Lords amendment
substituting a qualifying period of six months before an employee
can claim unfair dismissal.
The government also plan to make it harder for future
governments to amend the qualifying period by ensuring it can only
be varied by primary legislation.
What next: The government has committed to this
change coming into effect from 1 January 2027, meaning anyone with
6 months’ service on or after that date will be able to claim
unfair dismissal.
Read more:
Employment Rights Bill unpacked – day one unfair
dismissal rights
Government U-turns on day one unfair dismissal
rights – but adds compensation hike?
Unfair dismissal compensation
Now: Compensation for unfair dismissal is
limited to 52 weeks’ gross pay or a statutory cap (whichever is
lower). The compensatory award cap, which increases in line with
inflation every April, currently sits at £118,223. This is an important contrast
to discrimination and whistleblowing claims for which damages are
uncapped.
What the Act says: Both the 52 week and
financial cap are abolished.
This does not impact on the basic award and statutory redundancy
pay which are still calculated on a formula based on age, length of
service and gross weekly pay.
What next: An impact assessment has been
promised, but it’s currently unclear whether there will be any
further consultation on this. It’s assumed these changes will
come in at the same time as the unfair dismissal qualification
period change on 1 January 2027.
Read more:
Government wants to abolish the cap on unfair
dismissal compensation: what employers need to know
Government U-turns on day one unfair dismissal
rights – but adds compensation hike?
Uncapped unfair dismissal awards – will
Great Britain become an outlier?
Redundancy and restructuring
Restrictions on ‘fire and rehire’
Now: The Code of Practice on fire and rehire
was put in place in July 2024. The practice remains lawful, albeit
increasingly high-risk from a reputational and industrial relations
perspective.
What the Act says: Employers’ ability to
use fire and rehire to change terms and conditions will be
significantly restricted.
Dismissals to impose changes to certain key contractual terms
(pay, required number of working hours, pension, shift times and
length, time off rights, and other changes to be defined in
regulations (which may include benefits)) will be automatically
unfair if the reason for dismissal is that the employee did not
agree to the employer’s attempt to vary these terms, or because
the employer intended to employ another person on varied terms to
carry out substantially the same role. Closing a potential
loophole, the ban also extends to dismissals aimed at imposing new
flexibility clauses covering these protected terms.
The Act also allows for accompanying regulations to clarify that
expenses and certain types of pay may be out of scope, and to
define which changes to contractual benefits (other than pension)
are in scope.
There is a limited qualified exception for employers acting in
response to financial difficulties affecting their ability to carry
on business as a going concern.
If a dismissal and re-engagement is used to impose a contractual
change that falls outside of the categories above, the dismissal
will not be automatically unfair. Whether it is fair or not will
not be judged according to the usual tests – the wording requires
tribunals to take account of the reason for the variation, any
individual or collective consultation, and anything the employee
was offered in return for the change (arguably all factors a
tribunal would have considered in any event).
The ban also extends to “fire and replace” scenarios,
where employees are dismissed and replaced with self-employed
contractors, workers who are not employees, agency workers, or any
other non-employees to do substantially the same work. Such
dismissals will be automatically unfair unless the employer is
facing financial collapse and the measure could not reasonably have
been avoided. Transfers of employment covered by TUPE and
dismissals wholly or mainly attributable to a reduction in work are
not caught by this new rule.
In the very narrow circumstances when fire and rehire is
potentially permitted, the Code of Practice will still apply, but
will be updated.
What next: The government previously indicated
that it intended to gather views on updating the Code of Practice
during autumn 2025. This exercise is yet to start.
According to the Roadmap, these changes will take effect in
October 2026.
Read more:
New Deal talking points: what will Labour’s
trade union reforms mean for non-unionised employers?
Employment Rights Bill unpacked: ‘fire and
rehire’
More Employment Rights Bill amendments
published
Collective redundancy consultation trigger change
Now: Employers proposing 20+ redundancies
“at one establishment” within a period of 90 days must go
through a process of collective consultation before making any
redundancies. If employers don’t comply, employees can claim a
protective award of up to 90 days’ pay.
What the Act says: The Act adds a new threshold
test, requiring collective consultation if there are either 20+
redundancies at one establishment, or if another – new -
threshold test is met. This will be defined in regulations but will
involve counting employees across all sites/workplaces, potentially
based on a percentage or number higher than 20 (e.g. the lower of
10% or 100 employees across the business as a whole). The Act also
states that, in carrying out collective consultation, the employer
does not need to consult all employee representatives together or
try to reach the same agreement with all the representatives.
The Act also increases the maximum protective award to 180
days’ pay.
What next: In the Roadmap, the government
indicated that it will consult on collective redundancy measures in
winter 2025 / early 2026 and this is yet to start. Consultation is
likely to cover the new threshold test plus the question of whether
to double the minimum consultation period when an employer is
proposing to dismiss 100 or more employees (from 45 to 90
days).
The additional threshold test for collective redundancies will
be introduced in 2027.
Read more:
Employment Rights Bill unpacked: collective
redundancies
Penalties for not collectively consulting
Now: If an employer does not comply with
collective consultation requirements for redundancies (including
fire & rehire exercises) it faces a protective award of 90
days’ pay per employee.
What the Act says: The Act doubles the maximum
protective award to 180 days’ pay. It does not, however, make
‘interim relief’ available as a remedy, as had at one point
been proposed.
What next: The new penalty will apply from
April 2026 according to the Roadmap.
Read more:
Thinking about collective redundancies? Watch out
for new penalties and uncertain timings
Outsourcing of public services and TUPE
Now: Ex-public sector employees and private
sector employees can work on different terms and conditions
following the transfer of public contract.
What the Act says: The Act introduces powers to
avoid a “two-tier workforce” with ex-public sector
employees and private sector employees being employed on different
terms and conditions. Regulations may require public outsourcing
contracts to include provisions to ensure that (1) any workers
transferring from the public sector should be treated no less
favourably than they were when employed in the public sector, and
(2) private sector workers working for a supplier will need to be
treated no less favourably than the ex-public sector workers who
have transferred.
What next: Detailed regulations and a Code of
Practice will be introduced relating to outsourcing public service
contracts.
More generally, there will be a Call for Evidence to examine
TUPE and how it is implemented in practice, potentially in early
2026.
According to the Roadmap, the two-tier procurement provisions
will take effect in October 2026.
Read more:
Employment Rights Bill unpacked: will TUPE be
transformed
Zero hours contracts and predictability
Duty to offer guaranteed hours
Now: Zero-hour contracts are allowed but
can’t include clauses preventing employees working elsewhere.
There is no explicit right to have a more predictable working
pattern.
What the Act says: The Act does not ban zero
hours contracts, but the effect of the complex rules requiring
employers to make an offer of a guaranteed hours contract to a
qualifying worker is likely to reduce their use.
Employers will have a duty to offer qualifying workers a
contract that reflects the hours regularly worked over a reference
period. This duty will continue to apply until the worker no longer
meets the qualifying criteria. Following consultation, these
provisions have also been extended to agency workers.
Qualifying workers are those who, during the reference period,
worked under a zero hours contract, or who worked under a “low
hours” contract and worked hours in excess of the minimum
hours specified in the contract.
Key points, including the length of the reference period, the
threshold of “low hours”, and conditions on the number
and regularity of those hours, remain to be defined in regulations.
However, the government has previously indicated a preference for a
period of 12 weeks.
The offer of guaranteed hours must reflect the hours worked
during the reference period and regulations will provide additional
details regarding the specific working pattern or days that must be
offered. It also remains to be confirmed what prescribed form the
offer must be made in and – importantly – how long it
must remain open for.
There are exceptions. Addressing the possibility of short-term
labour needs, the Act provides that the offer can be a fixed-term
contract if that is reasonable (i.e. not permanent guaranteed hours
as is the default). “Reasonable” could include when there
is a “temporary work need” or when the worker is needed
for a specific task, but the scope of this is uncertain. There is
also an open-ended provision for further exceptions to be set out
in the regulations.
The obligation to offer guaranteed hours will cease to apply if
the worker resigns or has been fairly dismissed during the
qualifying period or a limited-term contract came to end (in
certain circumstances). If the termination occurs after the offer
but before acceptance, the offer is considered withdrawn.
The duty to offer guaranteed hours can be disapplied by a
collective agreement and does not need to be substituted with a
similar entitlement.
A worker who is not offered hours on these terms can bring an
employment tribunal claim, with the maximum award to be set out in
regulations. Employers will also need to be aware of the tribunal
claim which aims to prevent manipulation of work patterns to avoid
the application of these provisions. Essentially, this applies if
the right to guaranteed hours would have been applicable had the
employer not restricted the hours available during the reference
period.
In terms of the mechanics of offering guaranteed hours in a
tripartite relationship, it will be the responsibility of the end
hirer to make any guaranteed hours offer, although regulations may
place obligations on the agency in some scenarios. The collective
agreement contracting out provisions can also cover agency
workers.
The pay offered to agency workers under a guaranteed hours offer
must be no less favourable than the agency terms they’d been
working under or those of comparable workers. Additionally, when an
agency worker accepts a guaranteed hours offer from an end-hirer,
they will become a worker (rather than an employee).
What next: Consultation on these measures is
now expected in early 2026. Then, according to the Roadmap, these
measures (including their application to agency workers) will take
effect in 2027.
However, as noted, a number of key provisions remain to be
determined in secondary legislation. Detailed government guidance
is also expected.
Read more:
Employment Rights Bill unpacked: will guaranteed
hours guarantee flexibility for both parties?
Employment Rights Bill unpacked: zero hours
reforms extended to agency workers
Right to reasonable notice of work schedules and proportionate
compensation
Now: No statutory right to notice of
shifts.
What the Act says: Workers gain the right to
reasonable notice of a shift, including the time, day and how many
hours are to be worked. This duty will apply to workers employed on
a zero hours or minimum hours basis, as well as workers who do not
have a set working pattern.
There is also a right to reasonable notice of any change or
cancelled shift. This includes the extension of contractually
guaranteed shifts. What is “reasonable” notice will
depend on the circumstances, but regulations will set out a
specific minimum time.
Cancelled shifts include the situation in which a shift is
offered to more people than are needed, and then the worker is
ultimately not required because someone else has agreed to cover
it. However, a worker will only have entitlement to payment for a
short notice cancellation etc. if they had reasonably believed that
they would be needed for that shift. This provision potentially
helps to clarify the scope of these rules when shifts are offered
to a large number of workers.
There is a duty on employers to make a payment to workers each
time there is a change to a shift at “short notice”.
Details will be clarified in regulations, but compensation will be
proportionate to the cancellation or curtailment.
These provisions can be disapplied by the terms of a collective
agreement and this does not have to be substituted with something
similar.
Following consultation, these provisions will apply to agency
workers. It will be the responsibility of both the employment
agency and end hirer to provide an agency worker with reasonable
notice of shifts. The responsibility for paying any cancellation or
curtailment payments falls to the agency only, although this can be
recouped from the end hirer.
What next: Consultation on these measures is
expected in early 2026. It’s anticipated that this will
consider how much notice must be given, what payment must be made,
how any compensation will be calculated and any exceptions.
Then, according to the Roadmap, these measures (including their
application to agency workers) will take effect in 2027.
Read more:
Employment Rights Bill unpacked: shifting the
power for shift workers
Employment Rights Bill unpacked: zero hours
reforms extended to agency workers
More Employment Rights Bill amendments
published
Work-life balance
Stronger rights to flexible working
Now: Employees have a right to request flexible
working from day 1. Employers can refuse based on one or more of
the eight business reasons listed in legislation. The penalty for
breaching the statutory flexible working regime is eight weeks’
pay, currently capped at £5,600.
What the Act says: Refusal of a flexible
working request must be reasonable, although the eight business
reasons remain the same. An employer must state and explain to the
employee what the ground for any refusal is and why their refusal
is considered reasonable. There is no change to the penalty.
What next: According to the Roadmap,
consultation on these measures will take place in winter 2025 /
early 2026 and this is yet to start, with the measures set to take
effect in 2027.
In terms of secondary legislation, draft regulations may set out
steps to be taken when consulting with an employee before refusing
a request.
Read more:
Employment Rights Bill unpacked: will flexible
working really be the “default”?
Right to switch off
Now: There is no explicit right to disconnect
in UK law.
What the Act says: This is not covered in the
Act. The government previously indicated that it would deliver a
right to switch off through a statutory Code of Practice.
What next: In a House of Lord’s debate, a
spokesperson confirmed the government’s commitment to
implementing the right to switch off, despite earlier press reports
that it would not move forward with this proposal. We await
consultation on a draft Code of Practice.
Read more:
New Deal talking points: New details emerge on
Labour’s right to switch off
New Deal talking points: What could a new right to
disconnect look like under a Labour government?
Diversity, discrimination and pay reporting
Gender Pay Action plans
Now: Employers with 250+ employees must publish
annual gender pay gap reports. Employers are not required to
publish an action plan for closing it, but many do so. The
requirement is enforced by the Equality and Human Rights
Commission.
What the Act says: New regulations will require
employers with 250+ employees to publish “equality action
plans” including gender pay gap action plans. The regulations
will include specific penalties for not doing so.
What next: The regulations need to be drafted
and we expect further consultation. The regulations will set out
the detailed requirements and how often plans must be published,
but this cannot be more than every 12 months.
In terms of implementation, the Roadmap indicates that these
measures will be introduced on a voluntary basis in April 2026,
before coming into force in 2027.
Gender pay gap reports to identify contract workers
Now: Employers with 250+ employees must publish
annual gender pay gap reports covering their employees. Reports are
based on a snapshot taken on 5 April and must be published within a
year of the snapshot, i.e. by 4 April the next year.
What the Act says: Regulations will require
employers to identify the providers/employers of contract workers.
This does not mean that gender pay gap data must include data
reflecting what contract workers are paid. It is simply a
requirement to name the providers/employers of those contract
workers.
What next: Accompanying regulations are needed
to extend the scope of gender pay gap reporting in this way and
there may be further consultation on the details.
The Roadmap indicates that implementation will depend on
timelines for broader changes related to pay gap reporting, in the
upcoming Equality (Race & Disability) Bill (not yet
published).
Stronger duty to prevent sexual harassment
Now: Employers must take “reasonable
steps” to prevent sexual harassment of employees and workers
in the course of their employment.
What the Act says: Employers will have to take
“all” reasonable steps to prevent workplace harassment.
The Act gives the government powers to set out what amounts to
“reasonable steps” in regulations. The government also
ran a call for evidence on “what works” to reduce and
prevent sexual harassment in the workplace.
What next: The Roadmap indicates that these
measures will take effect in October 2026.
Somewhat confusingly, according to the Roadmap, the power to
introduce regulations will not take effect until 2027, after the
obligation itself has come into force.
Read more:
Employment Rights Bill unpacked: tougher stance on
workplace harassment
Employers to be liable for harassment by third parties
Now: Employers are not explicitly/directly
liable if their employees are harassed by customers/clients/other
third parties.
What the Act says: Employers will be liable for
third party harassment unless the employer took all reasonable
steps to prevent this. This covers all types of harassment not just
sexual harassment.
What next: The Roadmap indicates that these
measures will take effect in October 2026 and does not indicate
there will be further consultation on them.
Read more:
Employment Rights Bill unpacked: tougher stance on
workplace harassment
Disclosure of sexual harassment to be added to list of
qualifying disclosures
Now: Employees who disclose a breach of health
and safety obligations or other breach of the law are protected as
whistleblowers if they reasonably believe the disclosure is in the
public interest. Sexual harassment complaints can already be
disclosures which qualify for protection where they meet the public
interest test and count as a breach of health and safety
obligations or breach of a legal obligation.
What the Act says: Disclosing sexual harassment
has been added to the list of what counts as a qualifying
disclosure, making it more explicit that this can amount to
whistleblowing – as long as it meets the test of reasonable
belief that it is made in the public interest (and other tests
needed for it to be a protected disclosure).
What next: The Roadmap indicates that
whistleblowing protections will take effect in April 2026, with no
further consultation planned.
Read more:
Employment Rights Bill unpacked: tougher stance on
workplace harassment
Non-disclosure agreements
Now: There has been longstanding concern about
the abuse of NDAs where they prevent disclosures about sexual
harassment. The absence of regulation of these kinds of waivers was
a notable omission from the original draft of the Bill.
What the Act says: Any agreement preventing a
worker from making allegations or disclosures about harassment or
discrimination, including disclosures about the employer’s
response to such allegations, will be void.
This ban may be extended to agreements with independent
contractors and those in work experience or training.
Regulations may also define “excepted agreements” where
the ban does not apply, potentially following Ireland’s
approach, which allows NDAs at the employee’s request with
prior independent legal advice.
The new provision covers harassment or discrimination by the
employer or fellow workers. The wording also seems wide enough to
cover third-party harassment claims. Victimisation is also covered
(although the wording is not clear that all types of victimisation
are covered, such as acts of victimisation by a colleague rather
than the employer).
What next: It is not currently clear when this
ban will come into effect as it was not included in the
government’s roadmap for implementation of the Act.
Read more:
More Employment Rights Bill amendments
published
Ban on dual discrimination
Now: The Equality Act 2010 already contains a
provision about dual discrimination (called “combined
discrimination”) but it has never been brought into force.
This provides that it is direct discrimination to treat a person
less favourably because of a combination of 2 protected
characteristics.
What the Act says: This was not covered in the
Bill but the government ran a call for evidence on how to bring
this provision into force, which closed on 30 June 2025.
What next: It’s possible that the
government will legislate on this as part of the expected Equality
(Race and Disability) Bill (not yet published).
Read more:
Employment Rights Bill unpacked: discrimination
law
Ethnicity pay gap reporting
Now: Ethnicity pay gap reporting is not
compulsory, although there is government guidance for employers who
choose to report voluntarily.
What the Act says: The Employment Rights Bill did
not deal with ethnicity pay gap reporting but the government plans
to introduce this under the separate Equality (Race and Disability)
Bill. The government ran a consultation on how ethnicity pay gap
reporting will work, which closed on 10 June 2025.
What next: A draft Bill is expected in early
2026.
Disability pay gap reporting
Now: Disability pay gap reporting is not
compulsory.
What the Act says: The Employment Rights Bill
did not deal with disability pay gap reporting but the government
plans to introduce this under the separate Equality (Race and
Disability) Bill. The government ran a consultation on how
disability pay gap reporting will work, which closed on 10 June
2025.
What next: A draft Bill is expected in early
2026.
New pay transparency measures
Now: The EU’s Pay Transparency Directive
requires employers to take several measures to improve pay
transparency, including providing salary ranges when recruiting,
not asking candidates about salary history and providing employees
with information about their pay and how it compares to those doing
the same role or work of equal value. These measures do not apply
in the UK.
What the Act says: The Employment Rights Bill
did not deal with this topic but the government ran a call for
evidence about whether these sorts of pay transparency measures
should also be extended to Great Britain, which closed on 30 June
2025.
What next: It’s not clear if these measures
will form part of the expected Equality (Race and Disability) Bill
(not yet published).
Extension of equal pay rights
Now: Equal pay claims made under the equal pay
regime are currently limited to differences in pay based on sex.
Claims about pay based on other protected characteristics have to
be brought under discrimination law. Outsourced employees cannot
compare themselves against direct hires for the purposes of an
equal pay claim.
What the Act says: The Employment Rights Bill
did not deal with the extension of equal pay rights but the
government plans to legislate under the separate Equality (Race and
Disability) Bill. The government ran a call for evidence on how to
“make the right to equal pay effective” for ethnic
minority and disabled people, which closed on 30 June 2025. The new
legislation could extend existing equal pay laws to cover race and
disability (the government’s original plan) or follow some
other model. The call for evidence also explored allowing pay
comparisons between outsourced and “in house”
workers.
What next: A draft Equality (Race and
Disability) Bill is expected in early 2026.
Read more:
Employment Rights Bill unpacked: discrimination
law
Equal Pay enforcement unit
Now: Equal pay claims are brought by
individuals, albeit often acting in groups.
What the Act says: The Employment Rights Bill
did not deal with this issue, but the government ran a call for
evidence on establishing a new Equal Pay Regulatory and Enforcement
Unit, which closed on 30 June 2025.
What next: This may be dealt with in the
separate Equality (Race and Disability) Bill (not yet
published).
Employee representation and voice
Right of trade union access
Now: There is no general right for trade unions
to access workplaces for recruitment and organisation of members
– exceptionally unions can currently only come onto an
employer’s premises if the employer agrees (for example as part
of a collective agreement where the union is already recognised) or
it is ordered by the Central Arbitration Committee (CAC) ahead of a
statutory recognition ballot.
What the Act says: Trade union officials will
have a wider right to access workplaces for recruitment, organising
(not including organising industrial action) and collective
bargaining purposes, subject to following a prescriptive statutory
process. This includes digital/virtual access, which will
potentially help unions to engage with workers more effectively.
Unions will gain a right to request access: in response, employers
can either choose to negotiate the terms of “access
agreements” or the union will be able to apply to the CAC for
it to order access, with a presumption that union officials should
be able to access a workplace in any manner that does not
unreasonably interfere with the employer’s business. The detail
of default terms for access arrangements (where the parties are
unable to reach agreement through negotiation) will be prescribed
in future regulations. Any part of the workplace used as a
‘dwelling’ will be exempt.
If an employer fails to comply, the CAC will have powers to
order the employer to take steps to enable access to the workplace
by union officials and to impose financial penalties Consultation
on the proposed enforcement framework for access agreements closed
on 2 December 2024, and the detailed framework for financial
penalties will be consulted on further.
The government has consulted on how the right should work in
practice and the maximum value of the financial penalties that can
be imposed by the CAC.
What next: The government will now publish
secondary legislation setting out in detail the statutory process
for requesting access, the grounds on which the CAC will be able to
refuse requests for access and the default access arrangements
which the CAC can impose.
These measures are expected take effect in October 2026.
Read more:
Employment Rights Bill: consultations on trade
union reforms
Reforms to statutory union recognition
Now: The recognition process is complex – to
commence an application for statutory recognition, a union must
show that at least 10% of a proposed bargaining unit are union
members and that the majority of them are likely to support
recognition. The CAC can only then order recognition if, either (i)
at least 50% of the bargaining unit are union members or (ii) a
ballot is held, in which a majority of votes cast are in favour and
at least 40% of all workers in the bargaining unit vote for
recognition. Restrictions on unfair practices only apply when the
CAC has ordered a ballot. There are no specific rules dealing with
employees hired into the proposed bargaining unit during the
process.
What the Act says: The Act meaningfully lowers
the hurdles of the process by removing the 40% threshold and the
initial requirement to show majority support is likely. The Act
also gives the government the power to reduce the required
threshold for union membership to as low as 2% of the proposed
bargaining unit through future secondary legislation. Restrictions
on unfair practices will apply as soon as a union’s request for
statutory recognition is accepted by the CAC. Also, employees hired
more than 10 days after the CAC receives the union’s
application will not be eligible to vote in the recognition process
or be counted towards the number of workers in the bargaining unit
for recognition purposes.
What next: The government previously indicated
that it would consult on trade union recognition processes in
autumn 2025 but this exercise is yet to start. These reforms to the
recognition process are expected take effect in April 2026.
Read more:
New Deal talking points: what will Labour’s
trade union reforms mean for non-unionised employers?
Collective grievance process
Now: There is no legal requirement on employers
to adopt a procedure for collective grievances. Employees can raise
individual grievances, and have a statutory right to be accompanied
by a trade union representative at an individual grievance
hearing.
What the Act says: The Employment Rights Bill
did not deal with collective grievances, however, the government
have confirmed that this is one of their longer-term delivery
reforms, taking longer to undertake and implement. The government
will consult with Acas to allow employees to collectively raise
grievances about conduct in the workplace.
What next: The government has stated that it
will consult with Acas on this proposal, but no reference is made
to this in the Roadmap.
Read more:
New Deal talking points: what will Labour’s
trade union reforms mean for non-unionised employers?
Obligation to notify workers of their right to join a trade
union
Now: Employers must give all workers a written
statement of employment particulars when they start work: among
other prescribed information, these must state whether there is a
collective agreement which affects their terms and conditions of
employment. The penalties for not doing so are limited (two to four
week’s pay capped at £2,800).
What the Act says: The Act expands the list of
required particulars that employers must give to their employees to
include an explicit statement that workers have the right to join a
trade union. The specific content and form of this statement and
the obligations placed on employers in terms of when and how it
should be provided will be set out in future secondary legislation.
The government launched a consultation on how the duty to inform
workers of their right to join a trade union should work in
practice, which closed on 18 December 2025.
What next: These measures are expected take
effect in October 2026.
Read more:
Employment Rights Bill: consultations on trade
union reforms
Repeal of Strikes (Minimum Service Levels) Act 2023 and Trade
Union Act 2016 and permission for electronic balloting
Now: The Strikes (Minimum Service Levels) Act
2023 gives the government powers to set minimum service levels
during strikes in essential services.
The Trade Union Act 2016 imposed various limitations on strikes,
including longer notice periods, restrictions on picketing, higher
ballot thresholds for certain important public services and the
expiry of industrial action mandates after six months.
Industrial action balloting must be done in secret by post.
What the Act says: The Act repeals the Strikes
(Minimum Service Levels) Act 2023 and most of the Trade Union Act
2016, rolling back almost all of the restrictions on calling strike
action introduced by Conservative-led governments since 2010. The
Act also simplifies the information which unions must provide to
employers in notices of ballots and industrial action, lengthens
industrial action mandates to 12 months, reduces the notice
required for industrial action from 14 to 10 days and allows for
electronic balloting.
What next: The Strikes (Minimum Service Levels)
Act will be repealed as soon as the Act has Royal Assent, and the
relevant provisions of the Trade Union Act will be repealed two
months later, without further consultation. Electronic balloting is
expected to be introduced in April 2026.
New protections for trade union reps and members
Now: Employees cannot be subjected to
detrimental treatment or dismissal because of their trade union
membership or activities; however, the Supreme Court recently
confirmed in Mercer that there is no protection from
detriments short of dismissal for taking part in industrial action.
It’s also unlawful to refuse to employ someone on grounds
relating to trade union membership or to compile a
‘blacklist’ of union members and representatives.
What the Act says: The Act introduces new
protection for workers against detriments short of dismissal for
taking part in protected industrial action, correcting the gap in
existing protection confirmed in the Mercer decision. It also
strengthens and simplifies the existing protection against being
dismissed for taking part in protected industrial action.
The Act also introduces a new statutory role for “union
equality representatives” in workplaces with recognised
unions. Their duties will include promoting equality in the
workplace, providing advice and support to union members on
equality matters, and consulting with the employer on equality
matters. They will have a right to paid time off to carry out these
duties.
Existing rights of representatives of recognised unions,
requiring employers to provide them with reasonable facilities and
accommodations to carry out their duties, will be increased, in
addition to their existing right to paid time off.
The Act also extends existing protections against blacklisting,
to cover discriminatory actions by bodies other than employers or
employment agencies.
What next: According to the Roadmap, the
government will consult on the package of trade union measures that
includes protections against detriment in winter 2025 / early 2026
and this is yet to start. These measures are then expected take
effect in October 2026.
Fair Pay Agreement in adult social care
Now: Pay and other terms and conditions in the
social care sector are set by individual employers and are only
collectively bargained with trade unions where they are recognised
by particular employers.
What the Act says: The Act gives the government
new powers to establish the Adult Social Care Negotiating Body, an
industry-wide body composed of representatives of employers and
unions in the social care sector. The Secretary of State will be
able to ‘ratify’ agreements reached within the Negotiating
Body relating to the terms and conditions of all staff employed in
the provision of adult social care in England, in which case they
will become binding on all employers in the sector. They can also
set pay directly in the event of a failure to reach an agreement
within the Negotiating Body.
What next: The government will consult on its
proposals for ‘Fair Pay Agreements’ in the adult social
care sector. It will now publish regulations and codes of practice
governing the operation of the Adult Social Care Negotiating Body
in greater detail.
In terms of timing, according to the Roadmap, regulations to
establish the Fair Pay Agreement Adult Social Care Negotiating Body
will be brought forward in October 2026.
Surveillance technologies – negotiations with trade unions and
staff representatives
Now: There are no specific statutory provisions
on consulting with staff or unions about surveillance
technology.
What the Act says: This was not mentioned in
the Employment Rights Bill – only referred to in Next Steps
document.
What next: The Next Steps document indicates
that there will be a consultation on workplace surveillance
technologies and associated union and staff consultation
provisions. It remains to be seen how this may tie into any future
reforms on the regulation of artificial intelligence.
Family rights
Protection for maternity returners
Now: In redundancy situations, women have the
right to be offered suitable alternative employment (if available)
once they inform their employer of their pregnancy or if their
expected date of childbirth was less than 18 months ago.
What the Act says: The Act gives the government
powers to introduce regulations to cover other dismissals (which
are not redundancies) during pregnancy, maternity leave or
following a return to work. Protection will also apply to other
forms of family leave such as adoption leave, shared parental
leave, neonatal care leave and bereaved partners’ paternity
leave.
While the precise content of the regulations is not yet clear,
an amendment confirms they will specify the required notices to
employees, the evidence employers must provide and any additional
procedures to be followed.
According to the explanatory notes at the Bill stage, this will
ban dismissals of women who are pregnant, on maternity leave, and
during a six month return to work period, except in specific
circumstances. Reflecting this, a consultation has opened on when
dismissal of pregnant women and new mothers will still be allowed
and when the protections should start and end. The government is
also consulting on whether other new parents should be protected.
Consultation closes on 15 January 2026.
What next: We await further detail in
regulations.
In terms of implementation, the Roadmap indicates that the
measures will take effect in 2027.
Read more:
Employment Rights Bill unpacked: just getting
started for family rights?
Right to bereavement leave (including for pregnancy loss)
Now: There’s no general statutory right to
bereavement leave unless an employee’s child dies under the age
of 18 or is stillborn after 24 weeks of pregnancy whereby statutory
parental bereavement leave and pay may apply. There is also a right
to unpaid reasonable time off for family and dependants in an
emergency. There is no entitlement to leave for pregnancy loss that
takes place before 24 weeks.
What the Act says: The Act gives the government
the power to introduce a day 1 right to at least one week of
bereavement leave for employees. Regulations will specify the
necessary relationship with the deceased in order to qualify but we
assume this is likely to follow the definition used in time off for
dependants. Unlike parental bereavement leave, this will not be
paid. The new right to bereavement leave also includes pregnancy
loss that occurs before 24 weeks of pregnancy. The government has
launched a consultation seeking views on how to shape this right,
which closes on 15 January 2026.
What next: Further regulations are required to
set out the precise detail of this right, with the measures
expected to take effect in 2027.
Read more:
Employment Rights Bill consultations: bereavement
leave including pregnancy loss before 24 weeks
Employment Rights Bill unpacked: just getting
started for family rights?
Day 1 parental leave
Now: Employees need to have been employed for
one year to be eligible for parental leave.
What the Act says: The Act removes any length
of service requirement for parental leave.
What next: The Roadmap indicates that this
change will take effect in April 2026.
Paternity leave changes
Length of service
Now: Eligibility for statutory paternity leave
requires employees to have been employed for 26 weeks, assessed 15
weeks before the expected birth week.
What the Act says: The Act removes any length
of service requirement for paternity leave.
What next: The Roadmap indicates that this
change will take effect in April 2026.
Interplay with shared parental leave
Now: Employees lose any entitlement to
paternity leave and pay if they take shared parental leave and pay
before exhausting their paternity leave entitlements.
What the Act says: Employees will now be able
to take paternity leave and pay even after they have taken shared
parental leave and pay.
What next: Although not directly mentioned in
the Roadmap, we expect this change to take place in April 2026.
Read more:
Employment Rights Bill unpacked: just getting
started for family rights?
Sickness, wellbeing and disability
Menopause action plans
Now: There are no proactive obligations for
employers to take steps relating to employees with menopause.
What the Act says: New regulations will require
employers with 250+ employees to produce and publish menopause
action plans as part of an Equality Action Plan. The regulations
will include specific penalties for not doing so.
What next: The regulations will set out the
detailed requirements and how often plans must be published, but
this cannot be more than every 12 months. The Roadmap indicates
these measures will be introduced on a voluntary basis in April
2026, before coming into force in 2027.
Read more:
Menopause and mental health: addressing the
invisible symptoms
Statutory sick pay reforms
Now: Statutory sick pay is payable from day
four of sickness, and employees need to be earning above the weekly
lower earnings limit (currently £123) to qualify.
What the Act says: SSP will be payable from day
1 of sickness and payable for the first 3 Qualifying Days of
sickness. In addition, the lower earnings limit will be removed,
meaning that all eligible employees, regardless of earnings, will
be entitled to SSP. Those earning less than the lower earnings
limit (currently £123 a week) will become entitled to SSP at
a rate of 80% of weekly earnings.
What next: This will become law in a date set
by further regulations. The Roadmap indicates that this will take
effect in April 2026.
Worker status and self-employment
New single status of worker
Now: There is a 3-tier system for employment
status: people are either self-employed, workers or employees.
What the Act says: Nothing. The Next Steps
document discusses plans to move to a two-tier system, removing the
distinction between ’employees’ and ‘workers’. This
was not part of the Employment Rights Bill.
What next: The government has indicated that
the consultation on employment status will be published by the end
of 2025 but this is still awaited.
Pay and tax
Holiday (entitlement and pay) records
Now: There is no specific obligation to keep
records demonstrating compliance with holiday entitlement and pay
(except for employment businesses).
What the Act says: The Act imposes a new
specific obligation on all employers to keep records demonstrating
compliance with holiday entitlement (including the amount of leave
and pay). There’s no set format for these records, but they
must be kept for six years and failure to comply will be a criminal
offence punishable with (potentially unlimited) fines.
What next: We’re waiting for confirmation
of when this new obligation will come into force.
National Living Wage
Now: The National Living Wage increases in
April each year. The rate is set by the government, based on
recommendations made by the Low Pay Commission. The NLW does not
apply to under 21s. There is a lower hourly minimum wage for 18-20
year olds.
What the Act says: Nothing – the NLW was not
dealt with in the Employment Rights Bill. However, in April 2025
the NLW increased by 6.7% to £12.21 and the 18-20 minimum
wage rate increased by 16.3% to £10.
What next: The rates will go up again in April
2026 to £12.71 for the NLW and £10.85 for 18 to 20 year
olds. The government remains committed to phasing out the 18-20
rate altogether, so that all over-18’s will eventually qualify
for the NLW.
Ban on unpaid internships
Now: Status of interns can be a grey area.
There is no legal definition of “internship” or
“work experience” and an individual’s employment
status will determine what pay they are entitled to and what rights
they have.
What the Act says: Nothing. But the government
remains committed to banning unpaid internships (unless they are
part of an educational or training course) and launched a Call for
Evidence, which closed on 9 October 2025.
What next: The Call for Evidence closed on 9
October 2025.
Read more:
New Deal talking points: Will a ban on unpaid
internships make a difference?
Tips
Now: New tipping legislation took effect in
October 2024 which required employers to pass all qualifying tips
on to workers. Employers are also required to introduce a written
tips policy, setting out how tips are allocated.
What the Act says: The Act strengthens existing
law by requiring employers to consult with trade union or elected
representatives or (if none) workers directly, before producing the
first version of their written tips policy and when reviewing it.
Any tips policy will need to be reviewed every three years from
when it was implemented. Employers will also be required to make
available an anonymised summary of feedback received in
consultation.
What next: According to the Roadmap,
consultation on these measures is expected in winter 2025 or early
2026 and this is yet to start. The measures are then expected to
take effect in October 2026.
Umbrella companies
Now: There are concerns that, as regulated,
umbrella companies can deprive workers of employment rights,
distort competition in the labour market, and cause significant tax
loss.
What the Act says: The Act defines umbrella
companies (by amendment of the Employment Agencies Act) which will
be the gateway to further regulation (subject to consultation).
Statutory regulation will bring umbrella companies within the
regulation of the Employment Agency Standards Inspectorate (to then
pass to the Fair Work Agency when established).
What next: The Roadmap suggests consultation
will take place at the end of 2025 but this is still awaited, with
the measures then taking effect in 2027.
Enforcement
Extension of time limits for bringing tribunal claims
Now: Most tribunal claims need to be brought
within three months of the act complained of (e.g. dismissal,
discrimination, deduction from wages).
What the Act says: Time limits for bringing
tribunal claims will be extended from three to six months. This
will apply to all types of claims, including discrimination and
unfair dismissal (although curiously it does not currently apply to
breach of contract claims – this seems to be an oversight so
may be corrected).
What next: According to the Roadmap, this is
expected to take effect in October 2026.
Read more:
Employment Rights Bill unpacked: extension of time
limits for bringing tribunal claims
Creation of Fair Work Agency
Now: The UK has limited state enforcement of
employment rights.
What the Act says: The Act gives the government
various powers to enforce labour market regulation and to delegate
this to a new public authority (expected to be called the Fair Work
Agency). The Next Steps document says that the Fair Work Agency
will bring together existing enforcement functions, including
minimum wage and statutory sick pay enforcement; the employment
tribunal penalty scheme; labour exploitation and modern slavery;
employment agencies rules; as well as introducing the state
enforcement of holiday pay for the first time. The Act sets out a
range of enforcement powers, including the ability to enter
premises to obtain documents and inspect electronic records.
The Fair Work Agency will be able to:
Enforce failure to comply with the new obligation to keep
adequate records of holiday pay.
Enforce failure to pay certain statutory payments to workers
– including holiday pay and statutory sick pay. Based on the
existing regime for minimum wage enforcement, agency will be able
to issue a notice of underpayment to employers, which specifies the
amount payable within 28 days. This is combined with a penalty of
200% of the sum due, payable to the Secretary of State. This will
have major implications for employers who get holiday pay wrong
across a workforce.
Bring Employment Tribunal proceedings on behalf of a worker, if
the worker has the right to bring a claim but it appears they are
not going to.
Provide legal assistance for employment-related proceedings,
such as helping claimants with holiday pay claims.
Recover their own enforcement costs from employers who are not
complying with the law. This is a major new addition that will
increase non-compliance costs for employers and potentially help to
fund the agency’s work.
Enter homes with a warrant to obtain documents and check
computers.
What next: The Roadmap indicates the Fair Work
Agency body will be established in April 2026. It’s then likely
to take some time before the practical arrangements for the new
agency are fully up and running, but its extensive powers indicate
that it is seen as a key part of the future model of
enforcement.
Read more:
Employment Rights Bill unpacked: Fair Work
Agency
The Employment Rights Act covers England, Wales and
Scotland.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.