Key employment law updates | May 2025

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

Employment Rights Bill: second and third sittings of the House of Lords Committee Stage

On 8 and 13 May 2025, the second and third sittings of the House of Lords Committee Stage of the Employment Rights Bill (ERB) took place. The following was discussed:

8 May 2025

Zero hours, low hours and agency workers, flexible working and the removal of the waiting period for statutory sick pay were debated and agreed. Several amendments were made including:

• adding grounds on which a dismissal will be automatically unfair to include when an employee is dismissed for bringing an employment tribunal claim due to their employer incorrectly issuing a notice stating that their guaranteed hours offer had been withdrawn, or where they alleged the existence of any circumstance which would constitute a ground for bringing such proceedings;

• section 27BP(3) of the Employment Rights Act 1996 (ERA) to provide that a shift will be a "qualifying shift" if it would be, or would have been, worked, or is being worked, by the worker for the employer under a worker's contract of a specified description "that requires the employer to make some work available to the worker";

• adding the definition of "work-finding agency" to the interpretation section in new section 27BZ2 of the ERA;

• section 184 ERA to be amended so that employees on zero hours, low hours or agency worker contracts can receive short notice payments in the same circumstances as they receive other wages upon insolvency of their employer; and

• section 16 of the ETA 1996 to be amended to include payments for cancelled, moved or curtailed shifts in scope, to ensure that regulations can be made to enable benefits to be recouped where a worker has not received such a payment and so has had to claim benefits, and the tribunal has then ordered the employer or work-finding agency to make the payment. Additionally, the amendment ensures that regulations can be made so that benefits can be recovered from all types of respondents in claims brought under the zero hours provisions, which will prevent workers receiving double recovery where their rights have been breached and ensure that employers and other respondents do not benefit from breaching these rights.

13 May 2025

Statutory Sick Pay, tips and gratuities and parental, paternity and bereavement leave were debated and agreed with no further amendments put forward.

The fourth and fifth sittings of the Committee Stage continued on 19 and 21 May relating to harassment:

19 May 2025

The impact of Clauses 19-22 of the ERB relating to employer duties on harassment were proposed to assess the following:

• the prevalence of third-party harassment;
• impact on free speech;
• financial implication for employers; and
• identification of occupations at higher risk and potential mitigations.

21 May 2025

The following amendments were proposed:

• to Section 2 of the Health and Safety at Work Act - aiming to impose a duty on employers to prevent violence and harassment in the workplace;
• expanding the Health and Safety Executive (HSE's) responsibilities to encompass oversight of workplace harassment and violence;
• amendments addressing discrimination in the workplace based on political beliefs; and
• enhancing protections related to statutory maternity leave.

Further amendments will be discussed on 3 and 5 June 2025. We will share the outcome of the 19 and 21 May 2025 reviews in due course.

Employers should stay informed about the progression of the ERB and plan to prepare for its implementation to ensure compliance and seek to mitigate potential legal and operational risks.

ACAS publishes policy paper on building workplace collaboration in Britain

ACAS recently published a policy paper called policy paper, “A Time for Consensus: How Can Workplace Collaboration Be Built from Organisation to Nation?

The paper highlights the necessity of fostering trust-based partnerships among employers, employees, and unions to enhance productivity, innovation, and workplace well-being.

It provides a model of the key themes for success, including:

• Building trust and shared purpose between employers and employees;

• Strengthening social dialogue mechanisms to address workplace challenges and fostering a culture of cooperation;

• Enhancing workplace practices by providing training for managers and staff in order to promote equality and respect; and

• Policy recommendations including promoting policies that facilitate employee engagement.

The aim of the paper is to focus on employment relations built on collaboration, partnerships and shared problem-solving.

EHRC consultation following For Women Scotland Supreme Court decision

The EHRC has launched a public consultation running from 20 May to 30 June 2025 to update its statutory Code of Practice. This initiative follows the UK Supreme Court's decision in For Women Scotland Ltd v The Scottish Ministers on 16 April 2025 (covered in our last bulletin As the dust settles: employment law, the Supreme Court, and sex under the Equality Act), which clarified that terms like “woman” and “sex” in the Equality Act 2010 refer to biological sex, not gender identity.

The consultation seeks feedback on the proposed revisions to the Code of Practice, including:

• Single-sex services and spaces: clarifying when and how services can lawfully be restricted based on biological sex;

• Verification of sex: guidance on when it is appropriate for service providers to request documentation, such as birth certificates or Gender Recognition Certificates, to confirm an individual's sex; and

• Balancing rights: ensuring that the rights of all individuals, including trans people, are respected while complying with the legal definitions established by the Supreme Court ruling.

The EHRC's updated guidance, once finalised, will have significant implications for how employers implement single-sex provisions under the Equality Act - it is intended to ensure compliance with the legal definitions affirmed by the Supreme Court while balancing the rights and dignity of all individuals.

The Department for Business and Trade publishes a letter announcing new legislation to strengthen whistleblowing implementation and enforcement

The Department for Business and Trade (DBT) has announced forthcoming amendments to whistleblowing legislation aimed at strengthening the implementation and enforcement of UK sanctions.

Key points include:

• Enhanced Whistleblower Protections: the proposed legislative changes will ensure that workers who disclose information related to sanctions breaches to departments such as DBT, are protected under the Employment Rights Act 1996. This means they will be safeguarded against dismissal or detriment resulting from their disclosures;

• Expansion of Prescribed Persons: the amendments will update the list of "prescribed persons" under the Public Interest Disclosure (Prescribed Persons) Order 2014 to include HM Treasury, among others. This expansion will formally recognise additional matters and authorities to which whistleblowers can make protected disclosures, thereby encouraging more individuals to report suspected sanctions violations that previously may not have been covered; and

• Cross-Government Collaboration: the initiative highlights the collaborative effort among various government departments in implementing and enforcing sanctions. Each department plays a specific role, from policy formulation to civil and criminal enforcement.

Whilst currently no date has been specified for the introduction of the amendments, it will be important for employers to think about:

• Reviewing and updating internal whistleblowing policies to reflect new protections and prescribed persons;

• Ensuring employees are aware of their rights to disclose concerns relating to sanctions breaches; and

• Conducting training for managers and HR on how to handle disclosures correctly, especially if related to international sanctions or trade restrictions.

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 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 if you would like to discuss further how we can support your organisation.