The Government is planning to roll-out a voluntary digital ID scheme in an attempt to prevent illegal working. This was originally proposed as mandatory, but due to criticisms, has rolled-back to making it voluntary. So while we wait to hear how that will impact employers’ responsibilities, here’s a rundown of the current legal requirements.

All UK employers are legally required to prevent illegal working by carrying out a right-to-work check before hiring someone. This ensures the individual is permitted to do the work offered under their immigration status.

The Home Office highlights that illegal work can lead to exploitation of workers, tax evasion and unsafe housing conditions. Employers therefore have a duty to adhere to the rules and ensure no-one is being exploited.

Non-compliance consequences

If you fail to carry out the correct checks and someone begins work illegally, you could face a civil penalty. The amount depends on:

• whether you carried out the checks in good faith
• whether you have breached the rules in the past 3 years
• whether you have breached since the scheme started

Penalties start from £45,000 per worker for a first breach and £60,000 per worker for repeat breaches. Mitigating factors may reduce the amount.

Note: Always check the current amounts on GOV.UK, as they may change.

What you must do

When hiring a new employee, you must complete a right-to-work check before their first contractual working day.
You can carry out the check by:

• manual document check face-to-face (or via video where permitted)
• using an identity service provider (IDSP) for British/Irish citizens
• using the Home Office online right-to-work check for non-British/non-Irish citizens.

For British and Irish citizens, you may do a manual check or use an IDSP.
For non-British/non-Irish citizens, you must use the online service to obtain a share code (or manual if online check is not possible).

If the employee has time-limited permission to work, you must carry out follow-up checks before that time limit expires.

How to conduct manual checks

If you use a manual document check, you must:

• ask the employee to present original documents based on the acceptable lists published by the Home Office (Section 7).
• check the documents in the employee’s presence (face-to-face or via permitted video call) and that they appear genuine and belong to the person.
• make clear copies of the documents and record clearly the date the check was done.
• verify the consistency of photograph, date of birth, name(s) and that the document is valid (not expired or cancelled) and genuine.

Note: Handle the copies in line with data protection laws (keeping them for up to 2 years after employment ends).

How to use the Home Office online check

For employees with immigration status checkable online, ask them to provide a share code and their date of birth. Use the service “Check a job applicant’s right to work: use their share code” on GOV.UK to verify.

The online check replaces the need for manual documents in that scenario and gives you a “statutory excuse” if done correctly.

Why this process matters

Conducting the correct check gives you a statutory excuse against a civil penalty — meaning if you’ve done the checks prescribed and the person still turns out to be illegal, you may avoid the penalty.

Failing to do so correctly means you risk substantial fines, disruption and reputational damage.

Quick checklist for small businesses

• Carry out the right-to-work check before the employee starts working
• Determine whether the applicant is British/Irish or needs an online check
• Use the correct method: manual or online as applicable
• Make and keep copies of documents (or online result) and record the date
• If the employee’s permission is time-limited, schedule a follow-up check
• Treat all applicants equally — you must not discriminate on the basis of nationality, race or any protected characteristic when carrying out checks

If you’d like help setting up an onboarding process to integrate right-to-work checks clearly and compliantly for your business, get in touch.

From 6 April 2026, new employment rights are expected to come into force under the Employment Rights Act 2025 (ERA 2025).

This article highlights two major changes — collective redundancy consultation protective awards and the creation of the Fair Work Agency — and explains what employers should be doing now to stay compliant.

Collective consultation during redundancy

Under the ERA 2025, the maximum protective award for failing to carry out proper collective consultation will increase from 90 days’ pay to 180 days’ pay per employee.

Although the consultation process itself is not changing, the financial penalties for getting it wrong will double.

Based on data from the Office for National Statistics (ONS), the average daily pay in the UK is £134.20. For employers planning more than 20 redundancies in 90 days, this could mean a potential risk of £480,000 or more, if statutory consultation rules are breached.

What employers should do:

• Plan carefully before starting any redundancy process. Ensure collective consultation meets all statutory requirements.
• Review your redundancy policy to check it is current and legally accurate.
• Train managers on correct redundancy procedures and the serious financial risks of non-compliance.

The Fair Work Agency (FWA)

The Fair Work Agency (FWA) is a proposed new single enforcement body that will bring together several existing regulators:

• The Employment Agency Standards Inspectorate
• The Gangmasters and Labour Abuse Authority
• HMRC’s National Living and Minimum Wage team

The aim of the FWA is to simplify enforcement and provide a single point of contact for both workers and employers.

Key proposed powers include:

• Enforcing Statutory Sick Pay (SSP) and certain aspects of holiday pay
• Supporting employers that want to comply with the law
• Bringing tribunal claims on behalf of workers where necessary
• Providing legal assistance to workers, with costs recoverable from employers found guilty
• Pursuing up to six years of underpayments, including holiday pay and sick pay, and applying financial penalties where appropriate

What employers should do:

• Audit employment practices, including payroll, contracts, and policies, to ensure legal compliance.
• Pay close attention to holiday pay, as this will be a new focus for enforcement.
• Keep accurate records of hours worked, pay, holiday, and contract terms.
• Ensure employment documents are clear, consistent, and accessible to all employees and workers.

Preparing for change

The ERA 2025 introduces significant reforms intended to grow the economy, raise living standards and create opportunities for all. There is more to come, so employers should act now to update policies and prepare for compliance in these areas prior to April 2026

If you’d like help preparing for the changes, get in touch.

From 6 April 2026, several important workplace rights are expected to come into effect under the government’s Employment Rights Bill (ERB), now referred to as the Employment Rights Act 2025 (ERA 2025). These reforms will impact areas including paternity leave, unpaid parental leave, and whistleblowing protections.

Here is a summary of the upcoming changes and practical advice for UK employers to stay compliant with the new employment law requirements.

Paternity Leave Changes

Under the new legislation, statutory paternity leave (up to two weeks) will become a day-one right, removing the current 26-week continuous service requirement. This means all new employees who meet the remaining eligibility criteria will qualify for paternity leave.

To be eligible, employees must be one of the following:

• The father of the child
• The husband or partner of the mother (or adopter)
• The child’s adopter
• The intended parent in a surrogacy arrangement

Applicants must also:

• Be an employee (not an agency worker or self-employed contractor)
• Give correct notice (at least 15 weeks before the expected week of childbirth)

Note: The ERA 2025 has confirmed that the day one entitlement is for leave only. Statutory Paternity Pay requires 26 weeks service before employees qualify.

The Department for Business and Trade (DBT) estimates that tens of thousands of fathers will become eligible for paternity leave under these changes.

Another important amendment will allow employees to take paternity leave after shared parental leave, which is currently not permitted under existing rules.

Unpaid Parental Leave Changes

Unpaid parental leave (up to 18 weeks) will also become a day-one right, removing the existing one-year qualifying period.

To qualify, employees must:

• Be named on the child’s birth or adoption certificate (or expect to have parental responsibility)
• Be an employee (not an agency worker or self-employed)
• Not be a foster parent, unless parental responsibility has been granted by the courts
• Have a child under 18 years old

According to the DBT, around 1.5 million people will gain eligibility for unpaid parental leave once the new law takes effect.

Whistleblowing and Sexual Harassment

The ERA 2025 will also expand whistleblowing protection to include disclosures related to sexual harassment in the workplace.

Currently, protected disclosures cover areas such as:

• Criminal offences (e.g. fraud)
• Health and safety risks
• Environmental damage
• Miscarriage of justice
• Legal breaches (e.g. lack of mandatory insurance)
• Concealment of wrongdoing

Personal grievances are not covered unless they are in the public interest.

This means that individuals who report sexual harassment at work will be protected from detriment or dismissal as a result of making a disclosure. This protection applies to employees, workers, agency staff, and trainees.

Statutory Sick pay

Changes to Statutory Sick Pay will come in to effect, please read our previous blog for more information about this change.

Action for Employers

To prepare for the 2026 changes, employers should:

• Review and update paternity leave, shared parental leave, unpaid parental leave, whistleblowing, and grievance policies
• Communicate policy updates clearly to all staff
• Brief and train managers to ensure consistent application of the new rules

In summary

The ERA 2025 introduces significant reforms aimed at grow the economy, raise living standards and create opportunities for all. There is more to come, so employers should act now to update policies and prepare for compliance in these areas prior to April 2026

If you’d like help preparing for the changes, get in touch.

The UK Employment Rights Bill 2026 introduces major updates to Statutory Sick Pay (SSP) that every UK employer should start planning for now. Although the reforms take effect from 6 April 2026, businesses need time to prepare for higher absence costs and tighter Fair Work Agency enforcement. At the time of writing, SSP is £118.75 per week —and because it can rarely be reclaimed, it is a direct cost to employers.

What Will Change From 6 April 2026

The Statutory Sick Pay reforms include four headline changes:

• Day-one SSP entitlement– employees will qualify for SSP from the first day of sickness, ending the current three waiting days
• Lower Earnings Limit removed– around 1–1.3 million low-paid workers who earn below the current LEL will now qualify for SSP
• New SSP calculation rule– employees will be paid the lower of 80% of their average weekly earnings or the flat SSP rate. This gives low earners a payment closer to their normal wage, but caps costs at the statutory flat rate
• Fair Work Agency enforcement– the newly created agency will have powers to inspect, audit and enforce SSP compliance

What should employers do?

If your organisation only pays SSP for sickness absence, your staff costs will rise. For each employee, absence separated by more than eight weeks could increase costs by around £71.25 (based on current weekly SSP pay rate).

To protect profit margins:

• Model the financial impact now, using your current absence rates
• Review your sickness policy and staff handbook so references to absence thresholds and payments match the new rules
• If you provide enhanced sick pay, make sure your documentation clearly distinguishes the SSP element and that payroll records it correctly
• Communicate clearly with your payroll provider—check their software can:
  • start SSP from day one
  • pay 80% of average weekly earnings capped at the flat rate, and
  • include employees previously below the LEL

Strengthen Absence Management:

Many employers expect an increase in short-term sickness absence once day-one SSP starts. Employers should ensure that they implement their existing sickness absence review processes, or implement a new process to sit alongside their absence policy so they can proactively and effectively manage short-term absence.

Protect productivity by:

• Setting out a clear absence management policy
• Training managers to apply the policy consistently, and
• Keeping accurate records for potential Fair Work Agency inspections.

Key Takeaway

The Employment Rights Bill 2026 will transform Statutory Sick Pay.

Preparing early—by reviewing policies, updating payroll systems and training managers—will help UK employers stay compliant and control the impact of rising SSP costs.

If you’d like to talk to us about these changes and how best you can prepare for them, please get in touch.

As Artificial Intelligence (AI) becomes increasingly embedded in workplace operations, UK employers are exploring how they can apply the principles of ethical AI in  people management practices. When used responsibly, AI can support ethical, fair, and efficient HR processes. However, organisations must ensure compliance with UK laws such as the Equality Act 2010, UK GDPR, and Human Rights Act 1998, which govern privacy, anti-discrimination, and employee rights.

This blog explores how ethical AI in people management can benefit UK employers while ensuring minimal risk of discrimination or privacy breaches.

The Importance of Ethical AI in HR

To fully realise the benefits of AI in HR practices, organisations must implement it ethically. Key considerations include:

• Transparency: Clearly inform employees when AI tools are used.
• Fairness: Regularly audit algorithms for bias.
• Privacy: Follow UK GDPR by securing employee data and gaining consent where needed.
• Human Oversight: Ensure AI enhances—not replaces—human decision-making.

Top 5 Ways AI Can Support Ethical People Management in the UK

AI in Recruitment and Selection

Using AI in recruitment can promote fairer hiring by anonymising CVs, reducing unconscious bias, and shortlisting candidates based on skills rather than background. To remain ethical, employers must routinely check algorithms to ensure they do not reinforce existing inequalities or exclude minority candidates.

AI and Employee Wellbeing

AI tools can analyse employee feedback, emails, or engagement surveys to monitor mental health and workplace satisfaction. AI for employee wellbeing helps managers respond proactively. However, this must be done with transparency, anonymisation, and clear consent to protect privacy rights.

Performance Management with AI

AI can help assess performance trends based on objective data such as project delivery, deadlines, and KPIs. Used ethically, AI in performance management helps identify development needs and reduce bias. But organisations must avoid invasive monitoring and ensure people remain involved in final decisions.

AI in Learning and Development

Personalised training through AI enables employees to upskill in line with business goals. AI-powered learning platforms suggest tailored development plans based on job roles, performance, and aspirations. To maintain fairness, employers must provide equal access and avoid profiling that could limit future opportunities.

Predictive Analytics for Workforce Planning

AI-driven workforce planning tools use data to predict staffing needs, identify potential retention risks, and forecast future skills gaps. When handled ethically and in line with UK data laws, this enables better decision-making without compromising employee privacy.

Ethical AI is the Future of HR in the UK

AI offers powerful opportunities to enhance people management in the UK, but its use must always be ethical and legally compliant. By focusing on transparency, fairness, and employee rights, organisations can adopt AI in HR practices that improve both business outcomes and workplace culture.

When used responsibly, AI supports managers, promotes inclusion, and enables smarter, fairer decisions—making it a valuable tool for modern, ethical leadership. If you’d like to read a previous blog about the evolution of AI, you can read that here.

*Updated 11th February 2026

The Employment Rights Act 2025 (ERA 2025) received Royal Assent on 18th December 2025 after completing the ‘ping-pong’ stage of Parliament, where the House of Lords and House of Commons debate and amend the Bill until agreement is reached. One of the most significant areas of reform involves Trade Union laws, which could have major implications for both unionised and non-unionised employers.

This blog outlines the key changes to Trade Union laws, when they’ll take effect, and what they mean for employers.

Changes from 18th December 2025

The 2023 Act allowed employers in critical sectors (e.g., NHS, transport, education) to require minimum service levels during strikes. This has been fully repealed, removing the ability to issue work notices during industrial action.

Changes from 18th February 2026

Repeal of the Trade Union Act 2016 (majority of provisions)

The 2016 Act introduced strict rules on strikes and union operations. The ERA 2025 will repeal most of these, including:

• Strike ballot thresholds:
  • 50% turnout requirement scrapped – effective when e-balloting is introduced
  • 40% ‘yes’ vote rule for key public services removed
• Voting papers
  • Papers will be simplified
  • Will only state ‘strike’ or ‘action short of a strike’ as options to support
• Strike action notice periods:
  • Notice reduced from 14 to 10 days
  • Ballot notices provided to employers only need include:
    • the categories of employees being balloted
    • workplace locations
    • total number of employees concerned
• Ballot mandate period:
  • Extended from 6 to 12 months (no extensions beyond 12 months by agreement)
• Picketing rules:
  • No longer a requirement to appoint or identify a picket supervisor
• Check-off restrictions (union fee deductions):
  • Public sector employers can offer check‑off without having to provide an alternative payment method
  • Employers can no longer charge unions for providing check‑off
  • It’s easier for employers to deduct union subs through payroll if they choose to
• Political fund ballots:
  • Trade unions will no longer need to hold a ballot every 10 years to maintain a political fund

Stronger protection from dismissal during industrial action

Currently, protection from unfair dismissal applies for the first 12 weeks of lawful industrial action. Under the ERA 2025:

• Full protection will apply for the entire period of industrial action and after the action

Changes effective from April 2026

Easier union recognition

Key reforms include:

• Simplified recognition process:
  • Removal of the requirement to show likely majority support at application stage
• Lowered threshold for application to the Central Arbitration Committee (CAC) for statutory recognition:
  • The government will have the power to make regulations reducing the membership threshold to between 2% and 10%.

Ballots

• Simple majority – Removal of the 40% support threshold in ballots – only a simple majority
• Electronic ballots –  Trade unions will be allowed to hold ballots electronically, modernising the process and improving accessibility.

Changes likely effective from October 2026

Workers must be informed of union rights

• Employers must inform new employees in writing of their right to join a trade union, and this must be provided on or before their first working day, with their contract or written particulars
• Regulations will define the content and timing of this notice (consultation expected in Autumn 2025)

New right of union access to workplaces

• When a union recognition application is underway, unions will gain the legal right to access the workplace to reach workers
• This access framework will be overseen by the CAC
• Details will be set out in future regulations

New rights for union representatives

• Equality representatives (a newly recognised role) will gain the right to:
  • Time off for duties
  • Access to workplace facilities
  • They must complete specified training to qualify
• All union reps will have a strengthened right to access reasonable facilities for their duties
• Ministers will no longer be able to require public sector employers to report union rep time off

Extended protection against detriment

• Workers will gain a new right not to suffer detriment (e.g., disciplinary action or unfair treatment) for:
  • Participating in protected industrial action
  • Being deterred from taking part in such action
  • Exceptions (e.g., non-payment during strikes) will be clarified in upcoming regulations

Changes likely coming in 2027

Crackdown on blacklisting (or blocklisting)

• The Bill strengthens existing laws to prevent blacklisting of individuals involved in trade union activity; this builds on the Employment Relations Act 1999 (Blacklists) Regulations 2010, which already make such practices illegal
• A new industrial relations framework, to help employers and trade unions work together

What should employers do?

• Review union policies and procedures in light of upcoming changes
• Look out for the detailed regulations expected in Autumn 2025
• Prepare to adjust onboarding processes to include new union rights disclosures
• Stay up to date with CAC procedures and union access obligations

If you need help understanding how this part of the Employment Rights Act could impact your organisation get in touch.

The Employment Rights Bill (ERB) is currently progressing through the UK Parliament and is expected to bring wide-ranging reforms to employment and trade union rights across the UK. This post provides a detailed update on where the Bill stands, what changes it will introduce, and when those changes are expected to take effect.

Current Status of the Employment Rights Bill

As of July 2025, the Employment Rights Bill is at the Report Stage in the House of Lords. This stage allows for a thorough review of amendments and proposed changes. Once completed, the Bill will proceed to its Third Reading in the Lords.

After that, the Bill may undergo further scrutiny and debate between the House of Commons and House of Lords before it receives Royal Assent, at which point the legislation becomes law.

Key Employment Law Changes at Royal Assent (Expected in 2025)

Some of the most immediate reforms will take effect either upon Royal Assent or shortly afterward. These include:

• Repeal of the Strikes (Minimum Service Levels) Act 2023
• Repeal of most provisions in the Trade Union Act 2016
• Removal of the 10-year ballot requirement for trade union political funds
• Simplification of industrial action notices
• Stronger protections against dismissal for participating in industrial action

These changes signal a significant shift in how industrial action and trade union activity are regulated.

April 2026: Major Employment Law Changes

The second phase of implementation begins in April 2026, including several key workplace rights:

• Day 1 rights for Paternity Leave and Unpaid Parental Leave
• New Whistleblowing protections
• Doubling of the protective award period in collective redundancies
• A new Fair Work Agency to oversee fair labour practices
• Reforms to Statutory Sick Pay (SSP), including:
  • Removal of the Lower Earnings Limit
  • Elimination of the waiting period
• Simplified trade union recognition processes
• Introduction of electronic and workplace balloting

October 2026: Workplace Harassment and Trade Union Access

Further protections will come into force in October 2026, with a strong focus on fair treatment and preventing workplace abuse:

• New rules on fire and rehire practices
• Tipping law reforms
• Procurement two-tier workforce code
• Stronger protections against workplace harassment, including:
  • Requiring employers to take “all reasonable steps” to prevent sexual harassment
  • Preventing harassment by third parties
• New obligations on employers to inform workers of their right to join a trade union
• Extended rights and protections for trade union representatives
• Employment tribunal time limits extended
• Strengthened protections for taking part in industrial action

Employment Law Reforms in 2027

The final phase of the Employment Rights Bill will be implemented in 2027, with a focus on closing long-standing gaps in UK employment protections:

• Voluntary gender pay gap and menopause action plans (from April 2026)
• Enhanced rights for pregnant workers
• Defined employer responsibilities for preventing sexual harassment
• Regulation of umbrella companies
• Banning blacklisting practices
• Modernisation of industrial relations frameworks
• Reforms to collective redundancy consultation thresholds
• Stronger flexible working rights
• Bereavement leave entitlements
• New protections against unfair dismissal from Day 1
• Regulations to end exploitative use of Zero Hours Contracts, also extended to agency workers

What Employers and Employees Should Expect

The Employment Rights Bill represents one of the most comprehensive overhauls of UK employment law in decades. Employers should begin preparing now by reviewing internal policies and procedures to ensure compliance with the upcoming legal changes.

If you would like to know more about any part of the ERB, please get in touch.

Due to the change of government in July 2024, it’s easy to be confused about legislation changes this year. We’ve looked at the details for you, so here’s a rundown of the changes.

National Minimum Wage rates

The National Minimum Wage/living rates are going up on 1 April 2025. If your pay is based on minimum wage rates per hour, you will need to implement these changes:

Statutory pay rates – From April 2025

Family friendly leave

The rates of Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £187.18 per week.

Statutory Sick pay

The rate of Statutory Sick Pay will increase to £118.75 per week.

Statutory redundancy payments

With effect from 6th April 2025, the statutory redundancy pay cap will increase to £719 per week. It’s important to ensure you get up to date compensation information for anyone who leaves due to redundancy on or after this date. You will need to calculate their redundancy pay on the new rate.  If the redundant employee’s normal weekly rate is under the new figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Statutory Neonatal Care Leave

This statutory leave will allow parents whose babies need hospital neonatal care to take up to 12 weeks’ paid leave, with one full week available for each full week the baby receives neonatal care. This is in addition to their statutory maternity, shared parental or paternity leave. The right will:

• be available from day one of employment
• apply to parents with babies who are admitted to hospital before they are 28 days old and
• apply to babies who need to stay in hospital for 7 days continuously or more.

Leave must be taken within 68 weeks of the baby’s birth, or placement in the case of adoption

Neonatal Care pay will only be available for employees who have 26 weeks of continuous service and who meet the minimum earnings threshold (£125 per week).

This entitlement will be effective from 6^th April 2025.

Employer National Insurance increase

National Insurance Contributions (NIC) rates for employers increase from 13.8% to 15%. In addition, the threshold at which employers start paying NICs will decrease from £9,100 to £5,000 of an employee’s annual salary / wage. This means an additional £4,100 of each employee’s earnings will be subject to Employer NICs. The net result of this will be that more lower paid employees will be subject to Employer NICs.

This change is effective from 6^th April 2025.

Upcoming changes to be confirmed

Pension Scheme Bill

In November 2024, the Government announced it will introduce a new Pension Scheme Bill in 2025. The Bill is expected to include:

• Automatic consolidation of small, deferred pension pots
• A value-for-money framework for Defined Contribution (DC) schemes
• A requirement for occupational DC schemes to offer tailored retirement income solutions
• A commercial Defined Benefit superfund to enhance financial security for its members

It’s expected that a pension dashboard will be introduced in 2025, which will allow people to view all of their pension savings (including state pensions) on one platform. The aim of this is to improve transparency and enable people to have more control of their retirement planning.

Paternity (bereavement) leave

This new right will be a day-one right. The 26-week minimum service requirement for paternity leave will not apply for fathers and partners where the mother has died in the first year after birth or adoption. This also applies to a bereaved parent of an adopted child, or intended parent of a child born through a surrogacy arrangement. In addition:

• These bereaved parents will also be able to take paternity leave
• Where the child also dies (or is returned after adoption) the employee can still take leave

There are also plans for paternity leave to be extended to 52 weeks for these bereaved partners. It is unclear whether the day one right to paternity leave in this situation will extend to paternity pay.

Trade union reforms

Some of the trade union reforms contained in the Employment Rights Bill are expected to come into force in 2025 – removing the following requirements which were introduced by the previous government:

• The minimum service level requirements for certain sectors
• The information and turnout requirements for ballots

The Employment Rights Bill – progress

In line with the plans unveiled in the government’s Employment Rights Bill, future legislation changes have been laid out in general terms and are detailed below. In most cases the date of implementation is to be confirmed, unless stated otherwise.

NB The government have confirmed they do NOT intend to introduce a right to disconnect under the Employment Rights Bill, but it may be implemented under a ‘code of practice’ at some point in the future.

The list of forthcoming legislation changes below includes legislative and non-legislative changes planned.

Unfair dismissal

The two-year unfair dismissal qualifying period will be removed, and be replaced with a new statutory probationary period, referred to as the ‘initial period of employment’ in the bill. The length of this period is yet to be confirmed but is likely to be up to nine months.

Unlikely to be effective before Autumn 2026.

Trade union rights

Consultation has concluded and it’s been confirmed that the process and transparency around trade union recognition will be improved. There will be a new duty on employers to inform workers of their right to join a trade union.

The bill will also simplify information requirements on ballots for industrial action and extend the expiry of a mandate for industrial action from 6 to 12 months.

A further amendment will repeal the 50% industrial action ballot threshold (on a date to be specified in regulations).

Sick pay

There will be a right to Statutory Sick Pay (SSP) from day one of illness absence, removing what are referred to as the three ‘waiting days’. The requirement for employees to meet or exceed the Lower Earnings Limit (£125 from 1/6/25) will be removed.

Low earners, including those currently paid under the LEL will be eligible for SSP at a rate of 80% of their normal weekly earnings, if less than the flat rate of SSP.

Fire and rehire

Employers’ ability to use fire and rehire will be restricted due to a change to the laws on unfair dismissal. Where employers fail to agree a change to a contract of employment and a ‘fire and rehire’ process is initiated, the dismissals will be treated as automatically unfair unless the employer can show evidence of financial difficulties, and demonstrate that the need to make the change in contractual terms was unavoidable.

In addition, in January 2025 tribunals were able to apply up to a 25% uplift to compensation where the ‘fire and rehire’ process lead to proven unfair dismissal, IF the employer didn’t follow the Code of practice on dismissal and re-engagement, issued by the Secretary of State.

Redundancy collective consultation

Employers will no longer be able to treat redundancies at different locations as completely separate for the purposes of the thresholds for collective consultations. Collective consultation will be required if there are 20 or more redundancies at one establishment, OR where redundancies are being made across the employer as a whole, if a different threshold (to be confirmed) is reached. This new threshold for across the employer as a whole could be a fixed number, or a percentage of the workforce. This is a change to the original proposal.

The maximum protective award will be increased where an employer has failed to comply with collective consultation requirements. Specifics to be confirmed.

Employees who bring a claim for the protective award will also be able claim interim relief via the employment tribunal, and the government is proposing to increase the cap on Protective Awards in collective redundancy situations to 180 days (increased from 90 days) to encourage employer compliance.

Agency and Zero-hours workers

Agency workers will have the right to a guaranteed hours contract to reflect the hours they regularly work. This is likely to be across a set reference period. In addition, agency workers and zero hours contract workers will be given a right to reasonable notice of changes to shifts or working hours. There will be however the possibility of excluding those rights via a collective agreement.

Workers will also have a right to compensation that is proportionate to the notice given for any shifts that are cancelled or curtailed.

The details will be set out in regulations, and subject to consultation.

Flexible working

Flexible working will be the default day-one right, apart from when it is not reasonably feasible. If the employer believes it’s not reasonably feasible, the current eight reasons for refusing the request for flexibility will remain. Employers must explain the reason for a refusal, or why the refusal is considered reasonable, in writing to the employee.

Family leave returners

Forthcoming legislation will make it unlawful to dismiss a woman, while pregnant, and / or on maternity leave, and within six months of returning to work (with some exceptions to be confirmed).

Existing powers are to be strengthened in relation to dismissal in the period a person returns to work from adoption leave, shared parental leave, neonatal care leave and bereaved partners paternity leave, details to be confirmed.

Paternity and Parental leave

Statutory parental leave (unpaid) allowing parents to take 18 weeks of unpaid leave during the first 18 years of their child’s life) will become a day-one right, removing the requirement for one year’s continuous employment.

Statutory Paternity Leave will be a day-one right, removing the requirement for 26 weeks continuous employment.

Miscarriage bereavement leave

Mothers and their partners will be entitled to two weeks’ bereavement leave if they suffer a pregnancy loss before 24 weeks. This extends the current entitlement which applies only if a child dies or is stillborn after 24 weeks of pregnancy.

Harassment

There will be a new provision requiring employers not to permit harassment of employees by a third party.  In addition, employers must take ALL reasonable steps to prevent sexual harassment. This enhances the recent changes in October 2024.

Bereavement

There will be a day-one right to at least one week’s bereavement leave for employees. The circumstances under which this right can be exercised will be confirmed.

Fair Work Agency

A new enforcement body, the Fair Work Agency (FWA) will combine multiple existing agencies, in a single body to enforce employment rights. This will offer a single place where workers can seek help. This body will also be able to bring a claim to an employment tribunal in place of a worker if the worker decides not to pursue a claim. Details of how this would work are to be confirmed.

Tribunals

The time limit for bringing a tribunal claim will increase from three to six months.

Paid carer’s leave

The government confirmed it will review the current statutory Carer’s Leave entitlement, including the benefits of introducing paid carers leave. This review is one of the government’s longer-term delivery reforms.

National Living Wage

The government plan to update the National Living Wage to account for the cost of living, and remove the lower 18-20-year-old age bracket. This is part of a plan to move towards a ‘single adult rate’.

If you’re concerned about what these employment legislation changes from April 2025 mean for your business, please get in touch.

As we move into 2025, UK employers face a shifting economic landscape, alongside new regulations and policies set to shape the workplace. Following the Autumn Statement by Chancellor Rachel Reeves and the upcoming Employment Rights Bill, it’s crucial for businesses to prepare for these changes. Here are the key priorities for UK employers in 2025, and what they should focus on:

Prepare for changes in employment rights

The new Employment Rights Bill will introduce significant changes that affect how businesses manage their workforce. Some key provisions include:

• Stronger protections for workers. Expect changes to enhance job security and workplace conditions, including clearer and more stringent rules around unfair dismissal claims and redundancy.
• Extended sick leave and pay. The bill may introduce more generous sick pay entitlements, so employers should review their current sick leave policies.
• Flexible working. Employers must prepare for increased demand for flexible working options, with new rights potentially making it easier for employees to request remote work or flexible hours.
• Non-compete clauses. New rules could impact the enforceability of restrictive covenants, requiring employers to reassess their contracts and policies.

Address the cost of living crisis

The UK economy is still grappling with the effects of inflation, with many workers facing rising living costs. Employers should:

• Offer competitive wages. The government is under pressure to address wage stagnation. Companies should ensure they are offering competitive salaries, or consider cost-of-living adjustments for employees.
• Support staff wellbeing. Mental health and employee wellbeing are becoming a priority for businesses. Employers can consider offering wellness programs or increasing access to mental health support.
• Consider benefits packages. Reevaluate your benefits offerings, such as bonuses, retirement plans, and other perks, to ensure they remain attractive to current and potential employees.

Be ready for economic uncertainty

The UK economy remains uncertain, with global inflation, energy prices, and post-Brexit changes creating challenges. Employers should:

• Plan for economic fluctuations. Create flexible business plans that can be adapted if the economy worsens. This might include managing cash flow more conservatively, reducing unnecessary overheads, or diversifying your revenue streams.
• Focus on business resilience. Build resilience by strengthening your supply chains, diversifying talent pools, and reducing dependence on any one market or sector.
• Engage in strategic forecasting. Regularly monitor economic trends, political developments, and changes in consumer behavior to stay ahead of potential disruptions.

Prepare for more scrutiny around workplace culture

As public and government expectations evolve, businesses are under greater scrutiny about their workplace cultures. Employers should:

• Promote diversity and inclusion. Demonstrating a commitment to diversity and inclusion isn’t just good for business; it’s becoming a regulatory and ethical necessity. Make sure your company policies reflect these values and are communicated effectively.
• Strengthen employee engagement. Engage with employees to understand their needs, concerns, and aspirations. Companies with strong employee engagement are more likely to thrive during economic challenges.

Workforce optimisation

For many organisations, optimising staffing levels will be top of the agenda in 2025. For some, the focus will centre on attracting new talent to support organisational growth plans and address skills shortages. This will involve improving recruitment processes, methods and channels. Meanwhile, other organisations will focus on recalibrating their workforce through restructures to align with changing business needs or to reduce costs. Whether hiring or resizing, employers need to ensure that workforce planning supports long-term organisational objectives.

Focus on skills and training for the future

The UK’s skills gap is a persistent challenge, and the government has indicated a focus on improving workforce skills. Employers should:

• Invest in training programs. Upskilling your employees will be crucial in 2025. Offering continuous professional development (CPD) opportunities can improve staff retention and fill gaps in essential skills.
• Support apprenticeships. In line with government priorities, consider investing in apprenticeship schemes to build a pipeline of skilled workers while supporting the broader economy.

Ensure fair pay and pay transparency

Pay transparency and fairness are expected to be high on the government’s agenda in 2025. Employers should:

• Review pay structures. Conduct pay audits to ensure equal pay for equal work, especially for gender, ethnicity, and other underrepresented groups.
• Prepare for potential reporting requirements for employers with 250 or more employees. The government may introduce pay transparency measures, be ready to disclose pay gaps and ensure your organisation is ahead of the curve.
• Be proactive on diversity and inclusion. In 2025, businesses will be under increased pressure to ensure their recruitment, promotion, and compensation practices are equitable and transparent.

Adapt to new workplace technologies

The future of work is digital, and the UK government is investing heavily in technology. Employers need to:

• Invest in digital skills. Employees will need new tech skills as automation, AI, and digital platforms become more common in the workplace. Provide upskilling opportunities, especially for employees in roles that could be affected by technology.
• Update IT infrastructure. Ensure your business has the digital tools necessary for remote working, cybersecurity, and effective collaboration. Consider investing in cloud solutions and cybersecurity measures to protect sensitive data.
• Leverage automation. Review areas where technology can automate repetitive tasks, improving efficiency and allowing employees to focus on higher-value activities.

In 2025, UK employers will face a rapidly changing landscape of regulatory and economic challenges. By focusing on these priorities businesses will be better positioned to thrive in the evolving economy. Staying ahead of these trends and taking proactive measures will help you create a strong, resilient, and future-proof business. If you need any support or advice in any of these areas, please get in touch.

Labour’s Employment Rights Bill was published on 10^th October, the first stage of their Plan to Make Work Pay, in what’s been hailed by CEO of the CIPD as ”the greatest shift in employment legislation in decades”.

The Bill is the headline plan, there is still lots of detail missing, and some changes that were predicted, have not been included in this stage. The government plans to consult on the reforms next year, and any new legislation will not be implemented until 2026, at the earliest.

Here are the key things you need to be aware of:

Right to claim unfair dismissal will be a day one right, but with a caveat

Currently those dismissed with less than 2 years continuous service can’t claim unfair dismissal at an employment tribunal.  This requirement for 2 years service will disappear, and any employee would in theory have the right to make a claim.

However, there will be consultation on the use of a statutory probation period to allow for an initial judgement about a new joiner’s suitability for the role. Indications are this will either be a 6 or 9 month statutory probation period. The suggestion is that there will be a simplified process for dismissal during the statutory probation period, but there is still much detail to be provided prior to 2026 about how it will work in practice.

Employers will be thinking about how they can make their recruitment processes more stringent, so the right hiring decisions are made at the start, with some employers saying that they are less likely to take risks at the appointment stage, for example offering a role to a candidate who lacks experience but shows enthusiasm.

Flexible working will be the default, but with a caveat

Flexibility will be the default, unless the employer can prove it’s unreasonable, for a potentially valid reason, including the burden of additional costs, a detrimental effect on ability to meet customer demand, an inability to re-organise work among existing staff or recruit additional staff, and a detrimental effect on quality or performance; all of which are currently justifiable reasons for rejecting a flexible working request.

Currently employees with any length of service can request to work flexibly, and this request can only be refused on specific grounds – which are similar if not the same as those included as a valid reason for disallowing default flexibility. There is a change of emphasis and there will be a greater requirement for the employer to demonstrate why the role can’t be done flexibly as requested.

Employers will be thinking about how they manage the selection and onboarding processes so there is transparency about the employee’s requirement or desire for flexibility and what is reasonable, from the start.

Zero-hours contracts will stop, but with a caveat

Workers will have the right to be offered a contract with guaranteed hours, based on their regular hours worked over a defined period, expected to be the previous 12 weeks.  However, workers can opt to remain on a zero hours contract if they prefer.

This replaces previous legislation due to be implemented where workers could request a predictable working pattern if they had 26 weeks’ service.

Employers will be considering how they currently use zero hours contracts, if there’s an alternative contract (for example a fixed term contract), and review the hours their zero hours workers currently work to see how they may be impacted.

Parental rights will be strengthened with expanded leave entitlements

Employees will have a day one right to paternity, parental, and bereavement leave. Currently employees need 26 weeks of continuous service to qualify for statutory paternity and ordinary parental leave.

Bereavement leave will extend beyond the existing entitlement for parents who lose a child. Broader compassionate leave rights are expected but the details of how long and whether it will be paid remain uncertain.

Employers will be considering what the financial and practical impact of this change might be, looking at the demographics of their workforce, allowing for planning and mitigating risk.

Employees will get sick pay from their first day of illness

There will no longer be any ‘waiting days’ before an employee who is off work due to sickness will be eligible for SSP.  This pay will now be available from the first day of their absence, provided the employee meets the eligibility criteria. The criteria are also likely to be changed to make it more accessible for all employees, regardless of their earnings level.

Employers will be looking at their current sickness absence figures, and planning for the increase in costs of the additional 3 days SSP applicable.

There will be a ban on ‘fire and rehire’ practices, but with a caveat

The government will shut down the ‘loopholes’ that allow ‘fire and rehire’ and ‘fire and replace’ to continue. The practice of terminating an employee’s contract and rehiring them on different terms will be restricted, and these dismissals will be treated as ‘automatically unfair’, unless employers can evidence financial hardship as the reason for the change to terms and it was unavoidable. Employers will need to show such a change was a ‘last resort’ after thorough consultation and consideration of alternatives.

Employers will be considering what other changes they could make should there be a need to reduce costs across the business, before looking at forcing through changes to worker terms and conditions, so they can demonstrate it is a last resort.

Collective redundancy consultation and notification requirements will change

When an employer proposes making 20 or more redundancies at one establishment, there is a requirement to notify the DBIS and collectively consult.  The changes proposed mean there will be a requirement to collectively consult if the Company intends to make more than 20 redundancies, regardless of which establishment in the UK the losses will apply.

Employers will need to review their policies and internal procedures for establishing the need for collective consultation processes and plan accordingly should redundancies be necessary.

Requirement to prevent sexual harassment of workers will be extended

On 26 October, the Worker Protection Act 2023 came into force, introducing a new duty for employers to take ‘reasonable steps’ to prevent sexual harassment of their employees.  The Labour government has set out its intention to require employers to take ‘all reasonable steps’ to prevent sexual harassment, rather than just ‘reasonable steps’. It will also make employers vicariously responsible for protecting workers against harassment by third parties, a measure which was removed from the Worker Protection Act during the parliamentary process.

Employers will need to go ‘belt and braces’ with the preventative steps they can take in their business to prevent sexual harassment and tighten up how they can reasonably prevent harassment by a third party, as well as how they should respond to a complaint in light of this new liability.

Firms will be required to publish their intentions around improving equality

Large organisations (250+ employees) will have to develop and publish an equality action plan to show the steps they are taking in relation to gender equality.

 A new Fair Work Agency will crack down on unscrupulous employers

The government has announced it will establish the Fair Work Agency, combining existing enforcement functions around minimum wage, statutory sick pay, the employment tribunal penalty scheme, labour exploitation and modern slavery, to create a “strong, recognisable single brand” that will make it easier for individuals to know where to go for help. The Fair Work Agency will also cover a new area of enforcement – the holiday pay policy.

The Strikes Act and Trade Union Act 2016 will be repealed

The Bill will repeal the minimum service levels legislation introduced in 2023, and will repeal all but two parts of the Trade Union Act 2016.

The new government has set out plans to introduce new rights of workplace access for trade union officials and employer obligation to inform employees of their right to join a union.  The bill also brought forward measures to modernise trade union laws, including a reduction in the threshold for a recognition application from 10 per cent of the workforce.

Employers may want to introduce a ‘staff forum’ as a preventative measure to minimise the likelihood of union presence or recognition, or how they could engage proactively with unions in a positive way to build good employee relations. Contracts will need to be revised to include employee’s rights to join a union, and a communications plan to ensure the need to remind them will need to be devised.

Other plans outside of the Employment Rights Bill

The government has stated some of its commitments will be delivered outside of legislation, and they believe they can deliver more reform and therefore do not need all the commitments to be included in the bill.

This includes:

• Introducing the ‘right to switch off’, to prevent employers from contacting staff outside of their working hours.
• expanding the Equality (Race and Disability) Bill making it mandatory for large employers to report their ethnicity and disability pay gap.
• consulting on single worker status, aiming to transition towards a simpler two-part framework for employment status
• reviewing parental leave and carers’ leave systems

As a reminder, Labour’s Employment Rights Bill is subject to consultation as well as the usual passage through the House of Commons and the House of Lords, before it will become law in 2026, so there is plenty of time to prepare. More information is available here.

If you need help preparing, please get in touch.