Introduction from the editor, Gemma Sherbourne

2025 round-up: where are we now?

2025 has been a significant year in the world of employment law, and it is set to continue into 2026 as the Employment Rights Bill becomes law. We have set out below some of the important changes of which employers should be aware, including those elements of the Employment Rights Bill which are set to come into force in April 2026. 

Employment Rights Bill

Change to day one right to claim unfair dismissal

The Government has ‘given in’ on the Lords’ proposed amendment to the removal of the qualifying period of employment in order to bring a claim for unfair dismissal.  Rather than being a ‘day one’ right, as originally promised, there will now be a 6-month qualifying period of employment.  This change is likely to come into effect from 1 January 2027. The Government press release on this matter can be seen here.

Removal of cap on unfair dismissal awards

Section 124 of the Employment Rights Act 1996, which sets a limit on the amount that can be awarded in unfair dismissal claims, will be removed. This is a significant change in the world of unfair dismissal claims, bringing them into line with discrimination claims, and making them even more risky for employers.

Sick pay

Day one rights to Statutory Sick Pay will come into effect from April 2026. There will no longer be a requirement for three ‘waiting days’ for the payment of SSP, and the lower earnings limit will be removed.

Paternity and parental leave

Paternity leave and parental leave will become a day one right from April 2026.

Fair Work Agency

The Fair Work Agency will be established from April 2026, with its remit to include enforcement of holiday and sick pay rights.

Whistleblowing

Reporting of concerns relating to sexual harassment will explicitly be included in the list of what constitutes a qualifying disclosure from April 2026, giving express protection from detriment and dismissal on grounds of making such a disclosure.

Increase to protective award

The protective award for failure to collectively consult in relevant redundancy situations is set to double from the current 90 days’ pay to 180 days’ pay from April 2026.

Trade unions

A number of changes are expected to come into force in April 2026, including relating to the simplification of the recognition process, and allowing for e-balloting of members.

Consultations

A number of consultations were launched in October on the Employment Rights Bill.  These consultations will run until 18 December in respect of the first two below, and until 15 January in respect of the second two.  We would urge all employers to get involved:

Make Work Pay: trade union rights of access

Make Work Pay: duty to inform workers of right to join a union

Make Work Pay: enhanced dismissal protections for pregnant women and new mothers

Make Work Pay: leave for bereavement including pregnancy loss

Extension to Acas Early Conciliation Period

From 1 December 2025, the Early Conciliation period for all new cases registered with Acas is now 12 weeks, increased from six weeks. This change was made in recognition of the fact that, due to excessive workloads, Acas was failing to make contact with a number of claimants within the six week EC period. Whether and to what extent this may assist remains to be seen.

Online HR1 form – advance notice of redundancies

Also from 1 December, for any employer proposing 20 or more redundancies at one establishment within a 90 day period, it is now compulsory to submit the HR1 form online. Paper copies of the form will no longer be accepted. This is an important change to note, as failure to submit the HR1 can lead to criminal liability for both the employer and its officers.

Restrictive Covenant Working Paper

The Government has launched a working paper, under which it is seeking views on the use of non-compete clauses in contracts of employment. The use of these clauses are considered by some to be anti-competitive and contrary to growth. The Government is therefore seeking views on alternative policy options including:

• introducing statutory limits on the length of non-compete clauses
• banning non-compete clauses in employment contracts
• banning non-compete clauses below a salary threshold
• combining a ban below a salary threshold with a statutory limit

Further details of the working paper can be found here, and we would again encourage employers to respond. Responses are required by 18 February 2026.

Finally, we would like to take this opportunity to wish you all a very Merry Christmas, and a Happy, Healthy and Prosperous New Year. We look forward to seeing what 2026 has to offer in the world of Employment Law and will update you further as the year progresses!

If the employment team can be of any assistance in the meantime, please do not hesitate to get in touch with Gemma at info@tyrlaw.co.uk or by calling +44 (0)113 512 1050.