Key employment law updates | July 2025

Welcome to our monthly update, where we share upcoming changes to employment law.

Roadmap to the implementation of the Employment Rights Bill

At the beginning of July, the Government introduced its Implementation Roadmap which sets out dates for the upcoming changes. We have summarised them below:

Immediate (Pending Royal Assent)

• Repeal of the Strikes (Minimum Service Levels) Act 2023 and key provisions of the Trade Union Act 2016; and
• Introduction of new protections against dismissal for participation in industrial action.

From April 2026

• Protective award for collective redundancies: maximum period doubled
• Day-one rights to paternity leave and unpaid parental leave
• Strengthened whistleblowing protections
• Creation of a Fair Work Agency
• Statutory Sick Pay (SSP) reforms: removal of the lower earnings limit and waiting period
• Simplified process for trade union recognition, including digital and workplace balloting

From October 2026

• Legal ban on fire-and-rehire practices
• Establishment of a Fair Pay Agreement Negotiating Body for adult social care
• Introduction of stronger protections around tipping practices
• Employers to have a new duty to take all reasonable steps to prevent sexual harassment
• Expanded rights for trade unions

From 2027

• Mandatory gender pay gap and menopause action plans (initially voluntary from April 2026)
• Additional protections for pregnant workers
• New entitlement to bereavement leave
• Measures to tackle abuse of zero-hours contracts
• Regulation of umbrella companies
• Introduction of 'day-one' rights to claim unfair dismissal

Consultations on these reforms will begin in summer 2025 and continue into early 2026.

It is worth mentioning that the House of Lords have voted to amend the Employment Rights Bill to reduce the qualifying period for unfair dismissal from two years to six months instead of "day one". The Employment Rights Bill now returns to the House of Commons for review and we will keep you updated on this.

New amendments to the Employment Rights Bill

A continuously updated list of amendments to the Employment Rights Bill was published on 8 July 2025 revealing several significant and previously unannounced government-backed changes.

The key amendments are as follows:

• A new clause 22A of the ERB introduces a significant change to the enforceability of confidentiality clauses in employment agreements;

• Clause 26 of the ERB contains a ban on dismissing any employee for refusing to agree to a variation of their contract;

• Changes to the whistleblowing regime; and

• Softening of the controversial zero-hour contract proposals.

We have included a full breakdown of the roadmap and proposed amendments here [Marcomms – please include a link to Charlie's article].

UK trials sick note reform to boost workforce participation

The UK government has announced a new pilot programme aimed at reforming how workers are signed off sick, as part of broader efforts to help people with health conditions remain in or return to work.

Key Elements of the Pilot

• Joint initiative by the Department for Work and Pensions and the Department of Health and Social Care.
• Trials alternative methods for issuing and supporting fit notes, moving beyond the current over-reliance on GPs.
• Expands roles for non-doctor professionals such as:
  • Work and health coaches
  • Social prescribers
  • Physiotherapists
  • Occupational therapists

These professionals will both issue fit notes and provide employment-focused support.

Objectives:

• Shift from simply declaring employees “not fit for work” (as in 93% of 2024 cases) to proactive planning and support.
• Help up to 56,000 people with health conditions stay in or return to work by spring 2026.
• Free up GP time by reducing administrative burden.

Implementation:

• 15 trial regions, each receiving £100,000.
• Collaboration across integrated care boards, local authorities, and job centres.
• GPs and primary care teams will receive training to better support at-risk patients.

The reform shifts the focus from "not fit for work" to what work the employee can do. Employers may start receiving more detailed and proactive fit notes, including recommendations for adjustments or phased returns. This may require greater flexibility from employers to adapt roles or hours temporarily.

Available training for managers

Given the significant forthcoming changes brought about by the Employment Rights Bill, there is no better time to upskill your managers via our transformational management development programmes to reduce risk, increase engagement, and enhance motivation. Our programmes involve utilising unique accelerated learning techniques that will boost people management skills for years to come, suitable for supervisors up to board level.  Furthermore, our seamless programmes link in with your policies and templates to bring about impactful change (with practical templates to bring your policies to life, if required). We link below further information on four of our flagship programmes:

Details of our current programmes are as follows:

• 21^st Century: An innovative four-day management development programme designed to equip managers with essential skills, knowledge, and behaviours to effectively manage performance and improve workplace culture. 

• Gender Diversity: We know that managers and employees lack confidence talking about gender diversity and managing a diverse workforce. That is why we've created this bespoke training programme to help you get ahead and shape your culture.

• Inclusive Leadership: We may not notice our unconscious biases, but they still influence our actions and beliefs. For leaders, it is crucial to recognise those biases and lead inclusively which is the focus of our one-day Inclusive Leadership programme.

• Prevention of Sexual Harassment: With a new duty to take proactive steps to prevent sexual harassment (such as training), it is more important than ever to act. This programme equips your workforce with the tools needed to identify and take conscious steps to prevent workplace sexual harassment.

• Upskill Managers to Manage: We can support you to navigate the challenges of integrating teams effectively to maximise post-integration success, emphasising the need for strong management, strategic alignment, and collaboration to overcome cultural differences and mitigate risks in an increasingly competitive market.

• Improve Employee Heath & Resilience: Improving the health and wellbeing of your people is a key requirement to driving a successful business. By educating employees on health and wellbeing strategies, we can help you to gain the competitive edge as your people improve their energy, productivity and overall wellbeing. Our wellbeing programmes deliver educational, fun and interactive sessions that are empowering and revealing.

Please contact Joanne Boyle (Legal Director) if you would like to discuss further how we can support your organisation.