Employment Rights Bill - Latest update - July 2025

The Employment Rights Bill has now completed the Committee stage and has begun the Report Stage. On 1st July, the Government published a roadmap for the implementation of changes the Bill will introduce. It’s important to remember the Bill isn’t yet law and will require Royal Assent before becoming an Act of Parliament. There are a lot of changes to cover, so we’ll report on these over the next few updates. This month we’ll cover the changes proposed to come into effect in the next 12 months.

CIM

At Royal Assent or soon afterwards (estimated Autumn 2025)

The majority of changes are in relation to Trade Unions, with several pieces of legislation to be repealed (removed from law):

  • Repeal of the Strikes (Minimum Service Levels) Act 2023
  • Repeal of the majority of the Trade Union Act 2016
  • Removing the 10 year ballot requirement for trade union political funds
  • Simplifying industrial action notices and industrial action ballot notices
  • Protections against dismissal for taking industrial action

April 2026


There are some further changes in relation to trade union, but also to sick pay, family-related leave, redundancy and whistleblowing.

 

Trade Unions:

  • Simplifying the trade union recognition process
  • Electronic and workplace balloting

 

Sick Pay:

  • Right to Statutory Sick Pay (SSP) from day one of sickness, rather than day four, and from the start of employment
  • Removal of the Lower Earnings Limit (LEL), with those currently under the LEL to be paid SSP at 80% of their average weekly earnings, if less than the flat rate of SSP

 

Redundancy:

  • The cap on protective awards in collective redundancy situations is to double from 90 days to 180 days.- This relates to awards given by Employment Tribunals when an employer fails to inform and consult employee representatives about proposed redundancies involving 20 or more employees at one workplace.

Family leave:

  • Paternity leave will become a day one right (removing the 26 weeks’ service requirement)
  • Unpaid parental leave will become a day one right (removing the one year’s service requirement)

 

Whistleblowing:

  • The measures were not specified in the roadmap, but are expected to explicitly state that a disclosure relating to workplace sexual harassment is a ‘qualifying disclosure’, therefore allowing protections and rights to workers who make such disclosures under whistleblowing regulations.

 

Fair Work Agency:

  • The establishment of a new enforcement body (Fair Work Agency, FWA) to offer a single place where workers and employees can seek help.
  • Some amendments from the bill include a provision to enable the FWA to take forward an employment tribunal claim on behalf of a worker if the worker decides not to take one forward.
  • It will also have the power to give legal assistance to a worker who is taking forward a claim.
  • The FWA will be able to recover the costs of such enforcement action from individual employers, with details to be clarified and set out in regulations.

 

Action plans:

  • The publication of gender pay gap and menopause action plans will be introduced on a voluntary basis, set to become mandatory for employers with 250+ employees in 2027
  • The plans will outline the actions organisations will take to address gender pay inequalities and support staff through the menopause.

Still to come in future updates are changes due in October 2026 (trade unions, fire and rehire, tribunals, harassment) and 2027 (trade unions, redundancy, sexual harassment, unfair dismissal, zero hours and agency, flexible working, action plans, pregnant workers, bereavement).

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