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Unfair dismissal

Collective redundancies

Changing employment terms: dismissal and re-engagement

Statutory sick pay

Paternity and parental leave

National minimum wage increases

Increase to statutory family leave payments

Fair work agency

Umbrella companies

Right to work checks

Additional whistleblowing protections

Non-disclosure agreements

Harassment

Employment tribunal time limits

Trade unions and workplace access

Draft equality (race and disability) bill

Flexible working

Bereavement leave

Additional dismissal protection for pregnant women and new parents

Equality action plans

Zero hours and low hours and agency workers

Other things to look out for

 

Unfair dismissal

Changes to unfair dismissal rights are perhaps the most significant of all the changes made by the ERA 2025.

Implications/Action points

  • Revisit probationary periods urgently.
  • Increase focus on performance management during probation.
  • Train managers on dismissal processes.
  • Expect more unfair dismissal claims.

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Collective redundancies

The ERA 2025 includes provisions which will mean that employers’ statutory collective consultation obligations.

Implications/Action points

  • Greater oversight of restructures.
  • Longer redundancy timelines.
  • Greater emphasis on compliance.

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Changing employment terms: dismissal and re-engagement

Changes being made by the ERA 2025 will make it more difficult for employers to change employment terms.

Implications/Action points

  • Review contract terms now.
  • Implement changes early where possible.

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Statutory sick pay

The cost of Statutory Sick Pay (SSP) will increase for employers from April 2026…

Implications/Action points

  • Increased sickness absence costs.
  • Tighter absence management.

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Paternity and parental leave

On 29 December 2025, the Paternity Leave (Bereavement) Act 2024 came into force…

Implications/Action points

  • Plan for more absences.
  • Update policies.

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National minimum wage increases

The annual increase in National Minimum Wage rates takes effect from 1 April 2026…

Implications/Action points

  • Increased employment costs.
  • Review pay compliance.

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Increase to statutory family leave payments

From April 2026 the weekly rate of statutory family leave payments will increase.

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Fair work agency

The Fair Work Agency (FWA) is due to be established in April 2026.

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Umbrella companies

Recruitment companies often use umbrella companies to engage workers.

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Right to work checks

The illegal working regime is expected to be extended.

Implications/Action points

  • Audit workforce.
  • Ensure right to work compliance.

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Additional whistleblowing protections

The ERA 2025 strengthens whistleblowing protections in limited circumstances.

Implications/Action points

  • Update policies.
  • Train decision makers.

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Non-disclosure agreements

Under the ERA 2025, provisions in NDAs restricting discrimination disclosures will be void.

Implications/Action points

  • Review settlement templates.

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Harassment

Further changes to harassment laws are being made by the ERA 2025…

Implications/Action points

  • Review risk assessments.
  • Update policies and training.

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Employment tribunal time limits

The ERA 2025 will increase tribunal time limits…

Implications/Action points

  • Expect more claims.

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Trade unions and workplace access

The ERA 2025 makes wide-ranging changes to trade union law…

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Draft equality (race and disability) bill

2026 could see the publication of the draft Equality Bill…

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Flexible working

From 2027, employers will face additional hurdles in refusing flexible working requests…

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Bereavement leave

A new right to statutory bereavement leave is being introduced…

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Additional dismissal protection for pregnant women and new parents

From 2027, dismissal protection for pregnant women will be extended…

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Equality action plans

Large employers will be required to develop and publish equality action plans…

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Zero hours and low hours and agency workers

The Government plans to provide greater protections for insecure workers…

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Other things to look out for

Further consultations and reforms are expected…

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