Employment Rights Bill - Autumn Update 2025

Written By Bianca McCarthy

Whilst the resignation of the Deputy Prime Minister Angela Rayner and a reshuffle of senior government positions has caused concern about the future of the Employments Rights Bill and whether planned changes will be delayed or amended we wanted to share the latest position with you.

 The Employment Rights Bill is expected to become law in Autumn 2025.  This Bill will introduce amendments and additions to legislation including the Employment Rights Act 1996.  The majority of changes will be phased in during 2026 and 2027.  Below are those expected for Autumn 2025 and April 2026,  so that you may consider and prepare for the changes.

 Autumn 2025

 Reform of trade union laws – Phase one

  • repeal of the Strikes (Minimum Service Levels) Act 2023, which provides for minimum service levels to be in place during any period of strike action in certain services.

The following provisions are due to come into effect two months after the Bill receives Royal Assent:

  • repeal of many of the changes to industrial action ballots introduced by the Trade Union Act 2016, which would mean unions:

    • not having to summarise the issues in dispute to which the proposed industrial action relates;

    • having to give 10 days' notice of industrial action, instead of the current 14 days;

    • having to ensure peaceful picketing, rather than having to comply with obligations relating to supervision.

  • removal of conditions that were introduced in May 2024 to the check-off process in the public sector; and

  • removal of the requirement on public-sector employers to publish details relating to facility time.

 The following provision is also due to come into effect soon after Royal Assent:

  • extended protection against dismissal for taking industrial action.

April 2026

Eligibility for statutory sick pay

This includes provisions to make statutory sick pay (SSP) available to all workers. The Bill removes:

  • the requirement to earn at least the lower earnings limit

  • the three-day waiting period for workers to be entitled to SSP. This means SSP will be paid from the first day of sickness absence instead of the fourth

Following a consultation, the Bill sets the percentage rate for those earning below the rate of SSP at 80% of normal weekly earnings.

Removal of qualifying period for paternity leave and ordinary parental leave

The qualifying periods will be removed for paternity leave and ordinary parental leave, making them day-one rights.

Sexual harassment added to whistleblowing legislation

Sexual harassment will be added to the list of types of disclosure that qualify for protection under the whistleblowing provisions. This will mean protection for whistleblowers from suffering a detriment for making a disclose and any dismissal unfair.

Establishment of Fair Work Agency to enforce employment rights

This new body brings together existing enforcement bodies and will be responsible for enforcing rights including, the national minimum wage, statutory sick pay, holiday pay, regulations for employment agencies, unpaid employment tribunal awards, the licensing regime for businesses operating as "gangmasters" in certain sectors, and the ability to investigate serious labour exploitation that may not currently be covered within the  Modern Slavery Act 2015.

The Agency will be able to issue a notice of underpayment where an employer has failed to pay a statutory payment, have the power to bring employment tribunal claims where it appears that a worker who has the right to bring a claim will not do so and will have powers to inspect workplaces, issue fines, bring civil proceedings and prosecutions.

Whilst the Fair Work Agency will be established in April 2026 it is not yet known when it will begin exercising its enforcement powers

Doubling of collective redundancy protective award

The maximum protective award for failure to consult in collective redundancy to be doubled from 90 to 180 days.    The protective award is payable where an employer fails to comply with its consultation requirements.

Reform of trade union laws – Phase two

This includes:

  • simplification of the union recognition process, including by:

    • removing the requirement for majority support at the application stage;

    • removing the 40% support threshold; and

    • reducing the requirement from 10% membership at the application stage to a level not lower than 2%;

  • strengthened protections against unfair practices during the entire statutory recognition process;

  • a period of 20 working days to agree union access during a statutory recognition process; and 

  • electronic and workplace balloting (following consultation in autumn 2025).

 

If you would like some help to update your contracts of employment, policies and procedures, or have any questions about the Employment Rights Bill, please get in touch on 01473 276170 or email us at soshr@sos-hr.co.uk

 

Bianca McCarthy
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