New Employment Act 2025

Times are a’changing

You will have heard about the raft of new legislation the Labour Party are introducing in the UK known as the Employment Rights Act 2025. Much has already come into play and more is to follow.   It is hailed as bringing the world of work into the 21st century which you may or may not agree with. 

My job as a senior HR consultant is to help you navigate any changes required in your organisation and keep your organisation compliant.     

Whilst it is a long time since HR and management had to work with unionised work places, this is not something to be feared.   It is an understanding of fair and healthy working practices and if you have these in place none of this will be an issue. 

Before turning to AI for advice, I want to recommend that you instead collaborate with a solid, pragmatic, experienced and knowledgeable HR specialist to help you navigate the changes that are here already or soon will be.   The time and cost involved in auditing your people processes is an essential investment. 

 You can contact me on a no obligation, no cost basis for an initial consultation or another reputable HR consultant.  By way of background, I have thirty years of senior HR experience and there is no HR issue I have not encountered.  My experience is broad, senior corporate, LLM employment law and my continued professional development up to date.  My rates are highly competitive

AI can only go so far with providing advice.  Assessment of the advice, together with experience and wisdom will be far more efficient, fair and cost effective.  The changes in the contractual dismissal period, Tribunal applications, systemised union access, parental leave and higher claim values need to be managed carefully.  The bot will not be your go-to person in the event of a tribunal claim.  Prevention is always better than cure

Below are details of the salient changes:

February 2026 

Trade Union Laws 

There are several new laws that have come into force effective February 2026, including digitalising the TU system of membership and allowing any employee or worker access to Union membership.   New Trade Union laws with wider electronic balloting and new code of practice and regulation to be introduced.  All workers will have the right to join a Trade Union and Trade Unions will gain access to your organisation and systems and they don’t need your permission to do so. 

April 2026 

Family Friendly Policies 

Paternity Leave becomes a day 1 right  

Parental leave becomes a day 1 right 

Effective 1/1/27, regulations will be introduced to ban dismissals during maternity, parental, adoption leave or a return to work, bereavement leave, parental leave or shared parental leave. 

Statutory Sick Pay becomes a day 1 right 

The Fair Work Agency will be established to enforce compliance, with matters such as Statutory Sick Pay, national minimum wage, holiday pay agency workers right and modern slavery legislation.  The new agency will have much wider ranging powers than it previously had. 

Sexual Harassment will become a qualifying disclosure under the whistleblowing laws. 

October 2026 

Fire and Rehire  

Restrictions and fire and rehire will apply so that restricted variations will become unlawful.  The only exception would be if the organisation could demonstrate severe financial hardship 

There will be a requirement that all employees take all reasonable steps to prevent sexual harassment to their employees and workers

Employees will be liable for third party harassment unless the employer took all reasonable steps to prevent this.  This covers all types of harassment 

Tribunal timelines will be extended from 3 months to 6 months 

Staff and worker tipping policies are to be revised and/or implemented

1st January 2027 

Unfair Dismissal 

The qualifying period to bring a claim of ordinary unfair dismissal will be reduced to 6 months.  It is currently two years.  This will require very careful planning and monitoring of the probationary period 

There is no change to claims for discrimination and these claims remain uncapped. 

In addition, the cap on the compensatory award for unfair dismissal will be removed. 

Redundancy/Collective Consultation 

The requirement to introduce collective consultation is there are 20+ redundancies across multiple sites 

Flexible Working 

Any refusal of a flexible working request must be reasonable and state an explanation as to why the request has been refused and why the refusal is reasonable to the employer 

Equality Action Plans 

New regulations will require employers with 250+ employees to publish gender pay gap and menopause action plans.  It is expected the 250+ will reduce over time. 

Bereavement Leave 

A new right to one week of bereavement leave after the loss of a loved one will be introduced.  Previously it was up to 3 days and generally blood relative. 

Zero Hours 

There will be a right to guaranteed hours for zero hours workers and agency workers.  More will follow on this. 

Working Hours 

There will be a right for employers and workers to be paid if a shift is cancelled, moved to  another date or cut short.  In addition, the right will be given to have reasonable notice of shifts. 

NDA’s (Non-disclosure agreements) 

A change to the law will be introduced to void certain clauses that would prevent employers or workers from alleging or disclosing work related harassment or discrimination.    Care and advice should be sought when drafting NDA’s in the event this is relevant. 

I can help with any of the new legislation together with any people issues you may have.  You can reach me via my website www.freebirdhrconsultancy.com or +44 (0)771 5129373

Sarika Lynch

Director

Freebirdhrconsultancy.com