Employment Rights Act Hub | Mishcon de Reya

Index

Precarious workers

Flexible working

Statutory Sick Pay

Family friendly

Harassment & equality

Fire and re-hire

Unfair dismissal

Collective redundancy

Trade unions

Fair Work Agency

Sectoral bargaining

Miscellaneous

Precarious workers

Consultations:

Introduction of the right to guaranteed hours and the right to reasonable notice and short notice payments - Deadline: 25 August 2026
Fire and rehire – changes to expenses, benefits, and shift patterns - Closed: 1 April 2026
Application of zero hours contracts measures to agency workers - Closed: 4 March 2025

What else needs to be consulted on: The introduction of the right to guaranteed hours and the right to reasonable notice and short notice payments is scheduled for 2027, but no consultation has yet been launched on the detailed implementation of these measures.

Who is affected? Zero hours workers, low hours workers, temps, employers

When do the changes come into effect? These provisions are expected to take effect in 2027.

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The Employment Rights Act 2025 introduces comprehensive protections for workers on zero-hours contracts, low-hours contracts, and agency workers through four main rights. The Act also contains provisions on collective agreement contracting-out which allow independent trade unions to negotiate alternative arrangements that exclude these rights if replacement terms are incorporated into contracts. The extent to which unions will agree, however, remains to be seen.

1. Right to guaranteed hours

Employers must make a guaranteed hours offer to qualifying workers after every reference period. A worker qualifies if they worked during a reference period under a zero-hours contract or "low-hours" arrangement, worked a specified number of hours meeting conditions on regularity, and were not an excluded worker or agency worker. A consultation on these rights was launched on 2 June 2026, closing on 25 August 2026, and the Government has indicated its preference for a reference period of 12 weeks.

The guaranteed hours offer must propose to vary the worker's contract or offer a new contract requiring the employer to provide work for hours that reflect those actually worked during the reference period. Offers must be made by a specified deadline, in a specified form, and accompanied by specified information.

Workers may accept or reject offers; acceptance creates binding contract variations or new contracts. Failure to respond is treated as rejection.

2. Right to reasonable notice of shifts

Employers must give reasonable notice of shifts to workers on zero-hours contracts or specified low-hours contracts. Notice is presumed unreasonable if given less than a specified time before the shift starts.

Employers must also give reasonable notice of shift cancellations or changes (to start/end times or reductions in hours).

3. Right to payment for cancelled, moved, or curtailed shifts

Employers must pay a specified amount when they cancel, move, or curtail a qualifying shift at short notice. Qualifying shifts are those worked under zero-hours contracts, zero-hours arrangements, or specified low-hours contracts.

"Short notice" means notice given less than a specified time before the shift would have started (for cancellations) or before the earlier of the original/changed start time (for movements/curtailments).

4. Agency workers' rights

The above rights have been extended to agency workers as an anti-avoidance measure. Hirers (rather than the recruitment business) must make guaranteed hours offers to qualifying agency workers after reference periods where they worked specified hours. The offers must propose a contract that reflects the hours actually worked by the individual in question.

Agency workers have rights to reasonable notice of shifts and shift changes. Work-finding agencies must pay agency workers for shifts cancelled, moved, or curtailed at short notice.

Reference periods

When the initial reference period ends
When subsequent reference periods begin and end

Qualifying conditions

Conditions regarding number, regularity, or other aspects of hours worked to qualify
Which workers are "excluded workers"

Guaranteed hours offer requirements

Whether offers must specify days/times or working patterns reflecting when hours were worked
How to determine whether offers reflect hours worked and when they were worked
Specified descriptions of temporary needs justifying limited-term contracts
Deadline, form, manner, and accompanying information for offers

Reasonable notice standards

Minimum notice period before shifts (presumed unreasonable if less)
Minimum notice periods for cancellations and changes
Specified matters tribunals must consider when determining reasonableness

Shift payment provisions

Amount payable for cancelled, moved, or curtailed shifts
Day by which payment must be made
Time thresholds defining "short notice"
Time threshold defining "movement" of shifts
Circumstances exempting employers from payment obligations

Compensation limits

Maximum compensation for complaints in relation to this part of the Act

Collective agreement provisions

Further provisions about collective agreement contracting-out, including effects of incorporation and withdrawal notices

Flexible working

Consultations:

Improving access to flexible working - Closed: 30 April 2026

Who is affected? All employees, all employers

When do the changes come into effect? Expected to take effect in 2027.

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The Employment Rights Act 2025 amends the existing provisions relating to the right to request flexible working. The key changes strengthen employee rights and impose new obligations on employers when handling flexible working requests.

Employers may now only refuse a flexible working application not only if they consider that the application should be refused on one of the specified statutory grounds (the current position) but also that it is reasonable to refuse on that ground or those grounds. This introduces a dual test requiring both the existence of a valid ground and the reasonableness of relying on it – essentially, introducing the concept of proportionality into the process in a way that was previously absent.

The grounds on which an employer may refuse a request are: the burden of additional costs; detrimental effect on ability to meet customer demand; inability to reorganise work amongst existing staff; inability to recruit additional staff; detrimental impact on quality; detrimental impact on performance; insufficiency of work during the periods the employee proposes to work; planned structural changes; and any other grounds specified by the Secretary of State in regulations.

When refusing a flexible working application, employers must provide written notification that states the specific ground or grounds for refusal and explains why the employer considers it is reasonable to refuse on that basis. This goes beyond simply citing a statutory ground and requires a tailored justification.

What still needs to be decided?

The Secretary of State has the power to specify additional grounds for refusing flexible working requests through regulations. At present, it appears unlikely that the existing list will be extended enormously, if at all.

The Secretary of State may also specify in regulations additional steps that employers must take when dealing with flexible working applications. The Government's consultation paper proposed a "light touch" process. It suggested that the employer considering rejecting a flexible working request must meet with the employee within six weeks of the request and must clarify at the meeting whether the employee would like the request to be considered as a reasonable adjustment under the Equality Act 2010. The employer should set out why it would not be feasible to accommodate the request, with reference to the eight permitted business reasons, and must consider whether there might be ways to navigate identified challenges. Finally, the employer should provide written notification of the outcome of the meeting and the outcome of the request. The full scope of these procedural requirements remains to be confirmed following the response.

When do the changes come into effect?

According to the Government's July 2025 Implementation Roadmap, flexible working provisions are expected to take effect in 2027.

Statutory Sick Pay

Consultations:

Strengthening Statutory Sick Pay - Closed: 4 March 2025

Who is affected? All employees, all employers

When do the changes come into effect? These changes are now in force from 6 April 2026.

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The Employment Rights Act 2025 reforms Statutory Sick Pay (SSP) through four key provisions covering both Great Britain and Northern Ireland.

Removal of the waiting period

The Act removes the existing three-day waiting period for SSP. Employees will now be entitled to SSP from the first day of sickness absence, rather than following a number of qualifying days.

Changes to the lower earnings limit and payment rates

The Act fundamentally changes how SSP is calculated and who qualifies. The lower earnings limit requirement for SSP eligibility is removed entirely, meaning employees who previously earned below the threshold will now be entitled to SSP.

The weekly rate of SSP becomes the lower of the standard rate of SSP (currently £123.25) or 80% of the employee's normal weekly earnings. This represents a shift to an earnings-linked payment structure for lower earners.

What still needs to be decided?

Little needs to be done before these provisions come into effect, but we anticipate that guidance may be forthcoming from HMRC and the Department for Work and Pensions in relation to how to calculate "normal weekly earnings" for the 80% calculation, particularly for employees with variable or irregular earnings patterns. Employers should also be alert to any further guidance on transitional arrangements for absence periods that straddled the 6 April 2026 commencement date.

When do the changes come into effect?

The reforms to Statutory Sick Pay (removing the Lower Earnings Limit and waiting period) took effect on 6 April 2026, as planned. Employers should now be operating under the new SSP regime, with SSP payable from day one of absence and at 80% of normal weekly earnings for lower earners (subject to the flat rate cap).

Family-friendly leave

Consultations:

Leave for bereavement including pregnancy loss - Closed: 15 January 2026
Enhanced dismissal protections for pregnant women and new mothers - Closed: 15 January 2026
Parental leave and pay review (call for evidence) - Closed: 10 September 2025

Who is affected? All employees, all employers

When do the changes come into effect? Day one paternity leave and unpaid parental leave took effect on 6 April 2026. Rights for pregnant workers and bereavement leave are expected to take effect in 2027.

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The Employment Rights Act 2025 introduces significant improvements to family-friendly employment rights, removing barriers to leave and extending bereavement protections. The key changes include:

Immediate entitlement to parental leave: The Act removes the qualifying period of employment previously required for parental leave (unpaid leave available to parents for up 18 weeks per child, with a maximum of four weeks per year per child), meaning employees can access this right from day one of employment.
Immediate entitlement to paternity leave: The qualifying period for paternity leave (both following birth and adoption) is removed, allowing employees to take paternity leave from the start of their employment.
Flexibility to take paternity leave after shared parental leave: Employees are no longer prevented from taking paternity leave if they have already taken shared parental leave, providing greater flexibility for new parents to structure their leave.
Expanded bereavement leave: The Act significantly expands "parental bereavement leave" into broader "bereavement leave". This extends eligibility beyond bereaved parents to "bereaved persons" who satisfy specified conditions (to be set out in regulations) as to their relationship with a person who has died. Critically, the leave now also covers employees who have suffered pregnancy loss of a specified kind, or who have a specified relationship with someone who has suffered pregnancy loss or with a child who had been expected to be born. Pregnancy loss is defined as: (a) the ending of a pregnancy after less than 24 weeks in any way other than by a live birth, or (b) the failure of an embryo to become implanted following IVF treatment. Employees are entitled to at least one week's leave for bereavements other than the death of a child. The definition of 'child' now explicitly includes stillbirths after 24 weeks of pregnancy.
Enhanced protection against dismissal during pregnancy: The Secretary of State is given power to make regulations about dismissal (other than by reason of redundancy) during or after a protected period of pregnancy / maternity. These regulations may cover notices to be given, evidence to be produced, procedures to be followed, consequences of failures, interaction with contractual rights, and modifications to the calculation of a week's pay. This extends pregnancy protections significantly beyond the existing redundancy-specific provisions. Given the removal of the cap on unfair dismissal compensation, employers should be careful to follow whatever rules are put in place by the Government in this regard. The Secretary of State has also been given the power to make regulations about dismissal in the period after adoption leave, neonatal care leave and shared parental leave (not just during the leave period).

What still needs to be decided?

Several aspects of this part of the Act require secondary legislation or further regulatory clarification.

The conditions relating to the relationship with a deceased person that will qualify an employee as a "bereaved person" must be specified in regulations. Regulations must also specify what kinds of pregnancy loss are covered and the conditions relating to relationships with persons who have suffered pregnancy loss.

Regulations must be made under the existing framework to specify the precise entitlement (minimum one week's leave) where leave relates to circumstances other than the death of a child.

The Secretary of State has power to make regulations about dismissal (other than redundancy) during or after a protected period of pregnancy, but these regulations have not yet been made. These regulations may cover notices, evidence, procedures, consequences of non-compliance, interaction with contractual rights, calculation of a week's pay, and modification of existing enactments.

Whilst the Act amends existing sections to extend protections to periods after family leave, the detailed operation of these protections will depend on regulations made under the existing framework.

Harassment and equality

Consultations:

Equality law (call for evidence) - Outcome published: 23 July 2026
Equality (Race and Disability) Bill: mandatory ethnicity and disability pay gap reporting - Closed: 18 March 2025

What else needs to be consulted on: Measures requiring employers to take 'all reasonable steps' to prevent sexual harassment and introducing an obligation not to permit harassment by third parties come into effect in October 2026. Action plans on gender equality and supporting employees through the menopause become voluntary from 6 April 2026 and mandatory in 2027 . The power to specify what steps are regarded as 'reasonable' for preventing sexual harassment will come into effect in 2027 . No specific consultations on these implementation details have yet been launched.

Who is affected? All employees, all employers

When do the changes come into effect? The requirement on employers to take "all reasonable steps" to prevent sexual harassment of their employees will take effect on 30 October 2026. Gender pay gap and menopause action plans were introduced on a voluntary basis from 6 April 2026. Mandatory requirements are expected to take effect in 2027.

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The Employment Rights Act 2025 strengthens protections against harassment and discrimination in the workplace and introduces new employer obligations to promote gender equality.

Protection from harassment

Employers must take "all" reasonable steps to prevent sexual harassment of employees, strengthening the existing duty under the Equality Act 2010.
Employers must not permit third parties (such as customers, clients, or suppliers) to harass employees, and will be liable if they fail to take all reasonable steps to prevent such harassment.
The Secretary of State gains power to specify in regulations what steps are considered "reasonable" for preventing sexual harassment, which may include carrying out assessments, publishing policies, establishing reporting mechanisms, and handling complaints procedures.

Whistleblowing protections

Disclosures about sexual harassment (whether past, present, or likely future incidents) now qualify for whistleblower protection. At first glance, this may seem unnecessary, given that workers are already protected from victimisation, but it does allow for those making protected disclosures to apply for interim relief if they are dismissed because they blew the whistle. If successful, this would mean that they are entitled to continue to be paid throughout the period leading to the tribunal hearing.

Confidentiality clauses

Contractual provisions (such as non-disclosure agreements) are void if they prevent workers from making allegations of, or disclosing information about, harassment or discrimination, or about an employer's response to such matters.
This applies to harassment or discrimination by an employer or another worker, and where the victim is the worker themselves or another worker of the same employer.
The Secretary of State may specify exceptions to this rule by regulations, and may also provide that even "excepted agreements" cannot prevent disclosures to specified persons, for specified purposes, or in specified circumstances.

Gender equality duties

Regulations may require employers with 250 or more employees (and certain public authorities) to develop and publish equality action plans showing the steps they are taking on gender equality matters, and to publish prescribed information relating to the plan.
Gender equality matters include addressing the gender pay gap and supporting employees going through the menopause.
Regulations may require employers who are the 'principal' in relation to contract workers to disclose the identity of agencies or intermediaries supplying contract workers when publishing gender pay gap information or meeting public sector equality duties.

What still needs to be decided?

Several key provisions depend on secondary legislation that has not yet been published:

the specific steps that will be regarded as "reasonable" for preventing sexual harassment, including requirements for assessments, policies, reporting mechanisms, and complaints handling
the matters employers must have regard to when taking those steps
the conditions an agreement must satisfy to be treated as an "excepted agreement" exempt from the prohibition on confidentiality clauses
whether excepted agreements will still be void for disclosures to specified persons, for specified purposes, or in specified circumstances
whether the prohibition will be extended to individuals who are not technically "workers" but who work or receive training in specified circumstances
the full scope of requirements for equality action plans, including what steps must be shown and what information must be published
the detailed requirements for plan content, format, publication timing and frequency, revision cycles, and senior approval processes
how failures to comply with equality action plan requirements will be enforced
whether and how employers must disclose the identity of agencies or intermediaries supplying contract workers in gender pay gap and public sector equality reporting
regulations on equality action plans for public authorities require consultation with the Equality and Human Rights Commission and the Welsh Ministers (for Welsh public authorities), so timing will depend on these consultation processes.

All regulations for sexual harassment prevention, confidentiality clauses, and equality action plans are subject to the affirmative procedure, meaning they require Parliamentary approval, which may affect implementation timelines.

Fire and re-hire

Consultations:

Fire and rehire – changes to expenses, benefits and shift patterns - Closed: 1 April 2026
Collective redundancy and fire and rehire - Closed: 4 March 2025
Draft code of practice on dismissal and re-engagement - Previously consulted

Who is affected? All employees, all employers

When do the changes come into effect? Expected to take effect in January 2027.

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The Employment Rights Act 2025 introduces protections against "fire and rehire" practices. It creates a new category of automatically unfair dismissal.

An employee will be regarded as automatically unfairly dismissed (irrespective of their length of service) if they are employed for the purposes of a business and the principal reason for dismissal is related to a "restricted variation" of their contract, unless the employer can show that an exemption applies. This appears to apply even in circumstances where the employee has a term in their contract allowing the employer to make unilateral changes to the contract, but this point may need to be tested in the Tribunals.

Restricted variations include: reductions in pay or removal of pay entitlements; changes to performance-related pay measures; variations to pension terms; changes to working hours; certain shift timing or duration changes; reductions in time off entitlements; other variations specified in future regulations; and contractual terms allowing employers to impose these changes unilaterally.

Where dismissal relates to contract variations that are not "restricted variations", the dismissal is not automatically unfair, but specific factors must be considered in determining fairness including the reason for the variation, the consultation process that preceded the change, the extent to which unions were involved in the negotiations and what was offered to the employee in return for agreeing to the variation.

Employees will be regarded as automatically unfairly dismissed if the principal reason for dismissal is to enable the employer to replace them with an individual who is not an employee (such as contractors, consultants, or agency workers). This applies where the non-employee carries out substantially the same activities and the dismissal is not mainly due to reduced business requirements. Although it is not made expressly clear in the legislation, it is unlikely that this will apply to an employee who is fairly dismissed during a TUPE exercise.

For non-local authority employers, the protections do not apply if the employer can show that the variation or replacement was necessary to eliminate, prevent, or significantly reduce financial difficulties affecting their ability to carry on business as a going concern (or for public sector employers, the financial sustainability of carrying out statutory functions), and that they could not reasonably have avoided the need for the change.

Local authorities have a separate exemption where a relevant intervention direction is in effect relating to financial difficulties.

What still needs to be decided?

Several provisions depend on secondary legislation that has not yet been made:

The specific conditions under which variations to shift timing or duration will constitute "restricted variations" must be specified in regulations by the Secretary of State
Regulations may clarify that certain expenses or payments in kind are excluded from the definition of sums payable to employees, meaning variations to these would not be "restricted variations". The Government consulted on this question (consultation closed 1 April 2026). The consultation put forward two options: Option 1 (the Government's preferred option) would exclude all expenses and benefits or payments in kind from the scope of restricted variations. This would mean, meaning that a dismissal made in order to reduce or remove any expenses, benefits or payments in kind would not be automatically unfair. Option 2 would exclude all expenses and benefits except for certain types of share schemes, travel expenses and accommodation that clearly have an equivalent character to pay and form part of an employee's remuneration package. The Government's response to the consultation has not yet been published.
The Secretary of State may specify additional matters that employment tribunals must consider when determining whether dismissals are fair (where financial difficulties exemptions apply)
Similar additional matters may be specified for cases involving non-restricted variations
Additional matters may also be specified for cases involving the replacement of employees with non-employees

We are still awaiting clarification on the following issues:

Detailed guidance on what constitutes "financial difficulties" sufficient to meet the exemptions
How tribunals will assess whether employers "could not reasonably have avoided the need" for changes

When do the changes come into effect?

According to the Government's July 2025 Implementation Roadmap, fire and rehire provisions were originally expected to take effect in October 2026. However, the Government's revised implementation timeline (published 16 July 2026) confirmed that these changes have been delayed to January 2027. While the Employment Rights Act 2025 did not receive Royal Assent until 18 December 2025 (significantly later than anticipated when the Roadmap was published), relatively little secondary legislation is needed for this part of the Act to be implemented.

Unfair dismissal

Who is affected? All employees with more than six months' service, all employers

When do the changes come into effect? The changes to the qualifying period and the removal of the compensatory award cap have been confirmed by Commencement No. 4 Regulations (SI 2026/559). The six-month qualifying period and removal of the compensatory award cap will come into force in January 2027.

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The Employment Rights Act 2025 makes some significant amendments to the regime relating to unfair dismissal rights. The key changes are:

The qualifying period of continuous employment required before employees can bring an unfair dismissal claim will reduce from two years to six months. This reduction also applies to the right to a written statement of reasons for dismissal.
The limit on the compensatory award in unfair dismissal cases will be repealed entirely. This means there will no longer be a statutory cap on the amount of compensation that employment tribunals can award for unfair dismissal.

What still needs to be decided?

Confusingly, the Government has committed to conducting an impact assessment (but not a consultation) relating to the removal of the cap on compensation, but the legislation to remove it is now in place. It is possible that the position will change, but there is no indication at present as to what will happen.

When do the changes come into effect?

The changes to the qualifying period and the removal of the compensatory award cap have been confirmed by Commencement No. 4 Regulations (SI 2026/559). The six-month qualifying period and removal of the compensatory award cap will come into force on 1 January 2027, applying to dismissals where the effective date of termination falls on or after that date. Anyone with six or more months' continuous service on 1 January 2027 will gain protection immediately. The Government has committed to conducting an impact assessment on the cap removal; there is no current indication that this will prevent the change from proceeding, but employers should monitor any Government announcements on this point.

Collective redundancies

Consultations:

Collective redundancy and fire and rehire - Closed: 4 March 2025

Who is affected? All employees, all employers

When do the changes come into effect? Employers should expect phased implementation, with different provisions commencing on different dates.

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The Employment Rights Act 2025 reforms the collective redundancy consultation regime by making significant changes to the Trade Union and Labour Relations (Consolidation) Act 1992.

Key changes to consultation thresholds and scope:

The maximum period for which employment tribunals may make protective awards for failure to consult is extended from 90 days to 180 days. This means that where an employer fails to comply with collective redundancy consultation duties, affected employees may be awarded remuneration for a protected period of up to 180 days (previously up to 90 days). This doubles the potential financial liability for consultation failures. The protective award is calculated according to the employee's normal gross pay during the relevant period. Similar provisions apply to the compensation available to ships' crew, following the incident involving the large-scale redundancies at P&O.
The duty to consult employee representatives now applies where an employer proposes to dismiss as redundant within 90 days or less either at least a "threshold number" of employees (to be defined in regulations) or 20 or more employees at one establishment. The "threshold number" will be determined by regulations made by the Secretary of State and may be a specified number, a percentage of the employer's workforce, or the highest or lowest of multiple numbers, but cannot be lower than 20 employees.
Where proposed redundancies affect employees at more than one establishment, employers must provide the total number of affected employees and details of the establishments where they work.
Employers are not required to consult all appropriate representatives together or to reach the same agreement with all representatives, allowing for separate consultations with different groups.
The duty to notify the Secretary of State (via the HR1 form) applies using the same thresholds as the consultation duty: as such, notice must be given before issuing any termination notices, and at least 30 days before the first dismissal (or 45 days if proposing to dismiss 100 or more employees).

What still needs to be decided?

The "threshold number" of employees that triggers consultation and notification duties has yet to be confirmed. The regulations that will determine this will clarify:

Whether the threshold is a fixed number, a percentage of the workforce, or a hybrid formula.
The reference point for calculating the percentage (if applicable), including which employees count and the relevant time for assessment.
Whether different thresholds apply to different types of employers or different provisions within the collective redundancy regime.

These regulations must be made by statutory instrument subject to the affirmative procedure (requiring approval by both Houses of Parliament).

Until these regulations are made and in force, the practical scope of the extended collective redundancy regime remains uncertain. Employers will not know definitively whether workforce-wide thresholds apply to their proposed redundancies.

Trade Unions

Consultations:

Trade union right of access - Outcome published: 8 April 2026
Duty to inform workers of right to join a union - Closed: 18 December 2025
Recognition code of practice and e-balloting unfair practices - Closed: 1 April 2026
Draft code of practice on electronic and workplace balloting for statutory union ballots - Closed: 28 January 2026
Creating a modern framework for industrial relations - Closed: 4 March 2025

Who is affected? All employees, all employers

When do the changes come into effect? The changes to the trade union recognition process took effect in April 2026. The changes to electronic and workplace balloting are expected to take effect in August 2026.

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One of the most significant parts of the Employment Rights Act 2025 is its effect on trade unions and industrial action. It introduces substantial reforms to strengthen workers' collective rights whilst removing restrictions imposed by previous legislation.

Statement of Trade Union Rights

Employers must give workers a written statement confirming their right to join a trade union. This statement must be provided when the employer gives the worker their employment particulars statement, and at other times to be prescribed by the Secretary of State. The Secretary of State may prescribe what information must be included, the form the statement must take, and how it must be given.

Right of trade unions to access workplaces

An "access agreement" is an agreement between a qualifying independent trade union and an employer that allows union officials to physically enter a workplace or communicate with workers for specified access purposes. The access purposes are to meet, support, represent, recruit or organise workers (whether or not union members) and to facilitate collective bargaining, but do not include organising industrial action.

A qualifying trade union may give an employer a request for access by union officials for the access purposes. Access agreements may be entered into by negotiation if the employer responds and the parties agree terms within prescribed periods, which are then notified to the Central Arbitration Committee (CAC). If the employer does not respond within the prescribed period, or negotiations fail, the CAC may determine whether officials are to have access and, if so, the terms on which access must be provided.

The CAC must apply access principles including that union officials should be able to physically enter workplaces or communicate with workers in ways that do not unreasonably interfere with the employer's business, that employers should take reasonable steps to facilitate access, that both physical and remote access should not be refused solely because one of the two forms is permitted, and that access should only be refused entirely where reasonable.

Either party to an access agreement may complain to the CAC that the other party has breached the agreement, or that a person has taken steps to prevent access, within three months of the alleged breach; the CAC may vary the agreement, declare whether the complaint is well-founded, and order steps to ensure compliance. For subsequent breaches within 12 months, the CAC may order the party in breach to pay an amount to the CAC, which can be enforced as a court order.

Trade union recognition

The Act makes extensive amendments to the trade union recognition procedures, including:

The minimum number of union members required for a recognition application will be subject to change. It is currently 10% of the proposed bargaining unit, but this may be reduced to as low as 2% by secondary legislation
The turnout threshold (currently 80% of the proposed bargaining unit) hsa been removed entirely
Employers must provide specified information (name, date of birth, category) about relevant workers to the CAC within five working days of notice of a recognition application
If the CAC is satisfied the employer has failed to fulfil duties to provide worker information, it may order the employer to remedy the failure
If the employer fails to comply with a remedial order, the CAC may issue a declaration that the union is recognised
Unions may request access to relevant workers in connection with recognition applications (this is separate to the general right of access, described above) within five working days of acceptance
Parties must refrain from unfair practices including dismissals, threats, detriment, offering money for votes, making outcome-specific offers, coercing workers to disclose voting intentions, or using undue influence
Recognition agreements entered into by non-independent unions during a restricted period must be ignored when assessing admissibility – in other words, employers are prevented from making 'sweetheart deals' with unions that they have helped to set up specifically to frustrate the recognition process
Applications are inadmissible if made within three years of a CAC declaration that a union is not entitled to be recognised for the same or substantially the same bargaining unit

Trade union finances

Union members are now contributors to the political fund by default unless they give an "opt-out notice" to the union (reversing the previous "opt-in" requirement). Trade unions must give opt-out information notices to members within eight weeks of passing a political resolution and at 10-year intervals thereafter.

The restriction on deduction of union subscriptions from wages in the public sector is removed.

Facilities for trade union representatives

Employers who permit trade union officials to take time off must, when requested, provide reasonable accommodation and facilities for carrying out duties or undergoing training, having regard to ACAS Codes of Practice. This requirement also applies to union learning representatives.

The Act creates a new right for union equality representatives to take time off for activities including promoting equality in the workplace, arranging learning or training on equality matters, providing information and advice to members, consulting with the employer, and obtaining and analysing equality-related information. "Equality" is defined to include elimination of discrimination, harassment and victimisation, advancement of equality of opportunity, and fostering good relations between persons with and without relevant protected characteristics.

Publication requirements and reserve powers relating to facility time are removed.

Blacklists

The Secretary of State gains power to make regulations prohibiting the use, sale or supply of lists containing details of trade union members or those who have taken part in union activities, for purposes of discrimination in recruitment or treatment of workers.

Industrial action ballots

The turnout threshold requiring that at least 50% of those entitled to vote must do so will be removed once the Secretary of State has considered the effect of e-balloting on turnout. The support threshold requiring a minimum percentage of those entitled to vote to vote "yes" in certain sectors is removed.

Notices to employers about industrial action ballots are simplified to require only the total number of employees concerned, rather than detailed figures and explanations.

The period for which an industrial action ballot remains effective is extended from six months to 12 months.

The notice period that unions must give employers before industrial action is reduced from 14 days to 10 days.

Industrial action: picketing and protection

The requirement for detailed union supervision of picketing, including appointing a picket supervisor and providing information to police, is removed.

Workers gain the right not to be subjected to prescribed detriment by their employer if the act or failure takes place for the sole or main purpose of preventing or deterring the worker from taking protected industrial action, or penalising them for doing so. Workers may present complaints to employment tribunals within six months. The Government published its response to the consultation on this question in June 2026. The Protection Against Detriments (Industrial Action) Regulations are expected to come into force on 30 October 2026. It is well established that if a worker goes on strike they will not be paid for any time spent participating in that strike, and the Government does not intend to change this position. Actions that are not for the sole or main purpose of penalising, preventing or deterring a worker from taking industrial action (such as disciplining an employee for 'ordinary' misconduct occurring during industrial action) would not be prohibited. The Government is also proposing to add protection against detriment for taking industrial action to the list of claims for which an Employment Tribunal can increase any award by up to 25% for failure to comply with the Acas Code of Practice on Disciplinary and Grievance Procedures.

Protection against dismissal for taking industrial action is strengthened by removing the 12-week protected period limit and procedural requirements relating to lock-outs and conciliation.

Strikes: minimum service levels

All provisions relating to minimum service levels during strikes are repealed, including the entirety of the Strikes (Minimum Service Levels) Act 2023.

Certification officer

The oversight powers previously conferred on the Certification Officer have been drastically curtailed.

The requirement for trade unions to include details of industrial action in annual returns is removed. The requirement to include details of political expenditure in annual returns is also removed.

The Certification Officer's enforcement powers relating to annual returns are removed. Investigatory powers of the Certification Officer are removed. Powers to impose financial penalties are removed. Powers to impose a levy on trade unions are removed.

The Certification Officer's powers may now only be exercised on application by a member or union; the ability to act without an application is removed.

Appeals to the Employment Appeal Tribunal from the Certification Officer are limited to questions of law.

As such, the unions will be subject to considerably less regulatory scrutiny than before.

Regulations

Regulations prescribing matters for access agreements (response and negotiation periods, application periods, CAC determinations, amounts payable for breach) and regulations relating to detriment for taking industrial action must be subject to the affirmative resolution procedure in Parliament.

What still needs to be decided?

Significant elements of this part of the Act depend on secondary legislation and further detail:

Statement of Trade Union Rights

The times (other than when providing employment particulars) at which the statement must be given
The specific information that must be included, the form the statement must take, and the manner in which it must be given

Workplace Access Agreements

The prescribed form, information and manner for access requests from unions
The prescribed form, information and manner for employers' response notices
The prescribed response period and negotiation period for access agreement negotiations. Following the Government’s response to the consultation (published 8 April 2026), the response period is confirmed as five working days and the negotiation period could beas 15 working days. The Government also intends to publish "model terms" which the CAC will use as a benchmark for what is generally appropriate in relation to access terms, likely included in forthcoming secondary legislation
The prescribed period within which applications to the CAC for determination of access must be made
Terms that the CAC must consider would not unreasonably interfere with business, would constitute reasonable steps to facilitate access, or would be reasonable for unions to comply with
Circumstances in which it is reasonable or mandatory for the CAC to determine that union officials are not to have access
Matters to which the CAC must have regard when considering access applications
Minimum and maximum amounts payable for breach of access agreements. The Government’s response to the consultation (published 8 April 2026) confirmed a tiered approach: a maximum cap of £75,000 for an initial breach and up to £150,000 for repeated breaches, with regulations to set these amounts
Matters to which the CAC must have regard in determining amounts payable for breach
The Government’s response to the consultation (published 8 April 2026) and the revised draft code of practice (laid before Parliament on 6 July 2026, alongside secondary legislation) confirmed several aspects of the framework: the framework is expected to come into force on 30 October 2026; weekly access (physical, digital or both) is considered reasonable, unions must give two working days’ notice of access; employers may not avoid granting physical access solely by offering digital access; and access agreements expire two years after coming into force. The question of whether employers with fewer than 21 workers will be exempt remains to be confirmed

Trade Union Recognition, access arrangements, etc

Detailed regulations relating to the recognition process, including prescribed periods for various stages
The "required percentage" of workers who must be union members for recognition applications is currently 10%, but the Secretary of State may amend this to between 2% and 10%
Codes of Practice from ACAS or the Secretary of State on access agreements, unfair practices, and related matters
Electronic means (other than email and electronic forms) by which members may give opt-out or withdrawal notices
Guidance (to be published within three months of commencement) about appropriate provision in union rules for when opt-out notices take effect, subject to revision
Codes of Practice from ACAS or the Secretary of State on time off and facilities for equality representatives, and on what training is sufficient
Regulations prohibiting the use, sale or supply of lists containing details of union members or participants in union activities for purposes of discrimination
Specific provision within regulations on causing another person to do prohibited acts and enforcement mechanisms
How existing recognition procedures, ballots, and access arrangements will transition to the new regime
Treatment of existing facility time reporting obligations and political fund opt-in arrangements

Fair Work Agency

Who is affected? All employees, all employers

When do the changes come into effect? Formally established on 7 April 2026.

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The Employment Rights Act 2025 gives the Secretary of State responsibility for enforcing a wide range of labour market legislation, supported by enforcement officers appointed for this purpose. The ‘Fair Work Agency’ (FWA) will act on behalf of the Secretary of State, with wide ranging powers, many of which currently sit with other bodies such as HMRC, the Health & Safety Executive, and the Gangmasters and Labour Licensing Authority. Key provisions include:

The FWA will have the power to require individuals to attend interviews, provide information or documents, and produce specified materials by a specified date. Enforcement officers can enter premises (excluding dwellings without a warrant), inspect documents, and access computers used for processing or storing information.
The FWA must establish an Advisory Board with at least nine members, consisting of equal numbers representing trade unions, employers, and independent experts, to provide advice on enforcement matters.
The FWA must publish a labour market enforcement strategy every three years, setting out assessments of non-compliance with relevant legislation and proposals for how enforcement functions will be exercised.
Where the FWA determines that a sum was due to an individual under statutory pay provisions and has not been paid, a notice of underpayment can be issued requiring payment within 28 days. These notices must require payment of a penalty (200% of the underpayment, capped at £20,000 per individual, with a minimum penalty of £100).
Where the FWA believes a person has committed or is committing a labour market offence, they can invite the person to give an undertaking, or apply to court for an order, requiring compliance with prohibitions, restrictions, or requirements. These can have effect for up to two years.
The FWA may bring employment tribunal proceedings on behalf of a worker who appears not to be pursuing their own claim.
The FWA may assist parties to civil proceedings relating to employment law by providing legal advice, representation, or other assistance.

What still needs to be decided?

Several aspects of the enforcement regime are subject to secondary legislation or delegated rulemaking:

Regulations may provide for determining the sum required to be paid where it would have been greater if calculated by reference to current provisions, and may specify maximum amounts.
The Secretary of State may make regulations altering the claim period (currently six years) for notices of underpayment, potentially specifying different periods for different statutory pay provisions.
The Secretary of State may amend penalty percentages and amounts, including specifying different rates for different purposes.
The Secretary of State may issue directions specifying circumstances in which notices of underpayment do not impose a penalty requirement.
Regulations will specify additional measures (prohibitions, restrictions, or requirements) that may be included in labour market enforcement undertakings and orders.
Regulations may provide for charges to recover enforcement costs, including fixed amounts or hourly rates, and determination schemes.
The Secretary of State may add new enactments to the list of relevant labour market legislation subject to enforcement.
The Secretary of State may make arrangements with public authorities to delegate enforcement functions, though the details of such arrangements have not yet been specified.
The list of persons to whom enforcement information may be disclosed may be amended by regulations.

Sectoral bargaining

Consultations:

Fair pay agreement process in adult social care - Outcome published: 16 July 2026
Setting up the School Support Staff Negotiating Body - Outcome published: 9 July 2026

Who is affected? Employers and employees in adult social care, school support staff and their employers

When do the changes come into effect? The Government will consult on reinstating the School Support Staff Negotiating Body and the Fair Pay Agreement for the Adult Social Care sector in Summer/Autumn 2025. Regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body are expected to be brought forward in October 2026.

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The Employment Rights Act 2025 establishes sectoral bargaining frameworks for school support staff in England, and social care workers in England, Wales and Scotland. Each framework operates differently and is covered separately below.

School support staff in England

The Act establishes the School Support Staff Negotiating Body (SSSNB), an unincorporated body with functions relating to school support staff in England. School support staff are defined as persons employed by local authorities or governing bodies of maintained schools, or by Academy proprietors, under contracts providing for work wholly at schools, excluding school teachers.

The SSSNB's remit covers matters relating to remuneration, terms and conditions of employment, training, and career progression for school support staff. The Secretary of State may refer matters within the SSSNB's remit to the body for consideration, particularly matters relating to remuneration or terms and conditions of employment.

The SSSNB's membership must include persons representing prescribed school support staff organisations, prescribed employer organisations, and the Secretary of State. An independent chair must be appointed who does not represent the interests of staff organisations, employer organisations, the Secretary of State, or any other represented party.

Social Care Workers (England, Wales, and Scotland)

The Act grants powers to establish Social Care Negotiating Bodies: the Adult Social Care Negotiating Body for England (by the Secretary of State), the Social Care Negotiating Body for Wales (by Welsh Ministers with the Secretary of State's agreement), and the Social Care Negotiating Body for Scotland (by Scottish Ministers with the Secretary of State's agreement).

A social care worker is defined as a person employed wholly or mainly in, or in connection with, the provision of social care to individuals aged 18 or over (in England) or to any individual (in Wales or Scotland). The Negotiating Bodies' remit covers remuneration, terms and conditions of employment, and other specified matters relating to employment as a social care worker.

Membership of each Negotiating Body must include officials of trade unions representing social care workers and persons representing employers of social care workers. When a Negotiating Body submits an agreement to the appropriate authority, that authority may make regulations ratifying the agreement in full or to the extent specified.

If an agreement is ratified and relates to remuneration, social care workers' remuneration must be determined and paid in accordance with the agreement; provisions relating to other terms or conditions have effect as terms of the worker's contract. However, agreements cannot alter terms to a worker's detriment, and workers may still receive more favourable terms than those in the agreement.

Where a Negotiating Body notifies the appropriate authority that it has been unable to reach an agreement and specified conditions are met, the appropriate authority may make regulations about the matter, which can determine terms and conditions of employment.

What still needs to be decided?

School support staff

The Secretary of State must make arrangements constituting the SSSNB, following consultation with prescribed school support staff organisations and prescribed school support staff employer organisations
Regulations must be made to prescribe what payments or entitlements are treated as remuneration, what matters relate to terms and conditions, training, or career progression
The Secretary of State may specify factors the SSSNB must consider when reviewing matters and dates by which the SSSNB must comply with its duties
The specific matters that will be referred to the SSSNB for consideration have not yet been determined
Whether and to what extent any agreements reached by the SSSNB will be ratified by regulations
The content of any guidance to be issued by the SSSNB (with Secretary of State approval) or by the Secretary of State relating to ratified agreements or regulations

Social care workers

Whether Social Care Negotiating Bodies will actually be established (this is a power, not a duty) and, if so, when – separate regulations are required for England, Wales, and Scotland
All detailed provisions about the Negotiating Bodies' membership, appointment procedures, decision-making processes, record-keeping, payment of fees and expenses, staffing, and reporting requirements
The specific matters within each Negotiating Body's remit, including which categories of social care workers are covered and what employment-related matters are included
Detailed provisions about how Negotiating Bodies will consider matters, including circumstances triggering consideration, factors to be considered, conditions for agreements (including funding conditions), information requirements, and timescales
Provisions about reconsideration of agreements referred back by the appropriate authority
Provisions for resolving disagreements when a Negotiating Body cannot reach agreement
The form, manner, and description of records employers must keep, and the period for which they must be preserved
Provisions about guidance or codes of practice to be issued by the appropriate authority, including duties on specified persons and consequences of non-compliance

Miscellaneous and general provisions

Consultations:

Modernising the Agency Work Regulatory Framework - Closed: 1 May 2026
Strengthening the law on tipping - Outcome published: 29 July 2026
Tackling non-compliance in the umbrella company market - Closed: 4 March 2025
Unpaid internships (call for evidence) - Closed: 17 July 2025
Public procurement reforms - Closed: 11 December 2025
Late payments: tackling poor payment practices - Closed: 16 January 2026

Who is affected? All employees, all employers

When do the changes come into effect? Employment tribunal time limits and the changes to tipping law are expected to take effect in October 2026. The regulation of umbrella companies is expected to take effect in 2027.

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The Employment Rights Act 2025 introduces a number of important provisions in addition to those described in other sections. The key measures include tribunal time limits, tips and gratuities, public sector outsourcing, employment business regulation, heritage railways, and procedural provisions.

Time limits

The Act increases time limits for making claims to employment tribunals in Great Britain (and certain industrial tribunal claims in Northern Ireland) from three months to six months. This applies across virtually all employment rights including: unfair dismissal; unlawful deduction of wages; discrimination under the Equality Act 2010; time off rights (public duties, redundancy, ante-natal care, adoption appointments, dependants, pension trustees, employee representatives, study or training); flexible working requests; carer's leave; trade union rights (unjustifiable discipline, unauthorised deductions, training obligations, political fund deductions, refusal of employment, inducements, detriment, time off for activities); collective redundancy consultation failures; protective awards; unpaid pension contributions; written statement complaints; tips information requests; guarantee payments; working time rights; national minimum wage record access; right to be accompanied; and transnational information and consultation rights. The extension also applies to merchant shipping, civil aviation, fishing vessels, and cross-border railway services working-time claims. This is a fundamental change affecting limitation periods across employment law and significantly extends the period during which employers face potential claims and must retain evidence.

Tips and gratuities

The Act requires employers to consult with trade union representatives or workers before producing their first written policy on allocating tips, and to review that policy at least every three years with further consultation. Employers must also make an anonymised summary of consultation views available to all workers at the workplace.

Time off for public duties

The Act requires the Secretary of State to review, within 12 months of the Act passing, whether employers should be required to permit employees to take time off to perform the functions of a special constable (including British Transport Police and Police Service of Scotland special constables).

Definition of employment businesses

The Act extends the Employment Agencies Act 1973 to capture a much wider range of entities involved in worker supply chains. In particular, it fundamentally expands the definition of 'employment business' to include businesses 'participating in employment arrangements', where 'employment arrangements' are arrangements under which persons in someone's employment are supplied to act for and under the control of another person. 'Participating in' these arrangements includes: (a) being an employer of the supplied persons; (b) paying for, receiving, or forwarding payment for their services in consideration of receiving a fee from them; (c) supplying those persons; or (d) taking steps with a view to any of the above. This brings umbrella companies, payment intermediaries, and other entities within the regulatory scope of the Employment Agencies Act 1973, even if they are not the direct employer or supplier.

Public sector outsourcing

The Act inserts new provisions into existing legislation, requiring public contracting authorities to include worker protection provisions in relevant outsourcing contracts. A 'relevant outsourcing contract' is a public contract (or framework) for services that include performing functions previously performed by the contracting authority, where transferring workers will be employed by the supplier or sub-contractor. The appropriate authority (Minister of the Crown, Scottish Ministers, or Welsh Ministers) may make regulations specifying provision to be included in such contracts to ensure transferring workers and non-transferring workers are treated no less favourably. Contracting authorities must take all reasonable steps to ensure specified provision is included and complied with. The appropriate authority must also prepare and publish a code of practice containing guidance to contracting authorities, and contracting authorities must have regard to this code. This applies to central government, local authorities, NHS bodies, and other public authorities, but not to private utilities, certain devolved Welsh authorities, or (generally) transferred Northern Ireland authorities.

Employment of children on heritage railways

The Office of Rail and Road and the Health and Safety Executive, acting jointly, must prepare and publish guidance within 12 months of the Act being passed. This guidance must set out circumstances in which a child carrying out activities for a heritage railway in Great Britain is, or is not, to be regarded as employed in an industrial undertaking for the purposes of section 1 of the Employment of Women, Young Persons and Children Act 1920 (which restricts employment of children in industrial undertakings). A 'heritage railway' means a railway operated for preserving, recreating or simulating railways of the past, or demonstrating historical motive power or rolling stock, and used exclusively or primarily for recreational or educational purposes. The guidance may be revised and republished from time to time.

Seafarers

The Act introduces provisions that are designed to offer enhanced protection to seafarers and sets out a framework that covers both wages and working conditions.

What still needs to be decided?

Tips and gratuities

The consultation and review requirements are fully specified in the Act, but enforcement mechanisms and penalties for non-compliance may be subject to further regulations.

Time off for public duties

The Secretary of State must conduct a review and publish findings on whether time off rights should be extended to special constables, but the outcome of this review and any subsequent legislative changes are not yet determined.