UK Employment Rights Bill: Progress and Future Consultations
The Employment Rights Bill has entered its report stage in the House of Lords, with four scheduled sittings in July. During this stage, the Bill will continue to be scrutinised by the Lords, and further amendments may be proposed and approved. The House of Commons is due to begin its summer recess on 22 July, returning on 1 September. It is therefore unlikely that the Bill will be finalised before the autumn. In the meantime, the government has published a roadmap for implementation, including the timing of further consultations and anticipated commencement dates for a phased introduction of the provisions in the Bill. The roadmap highlights that many areas will require secondary legislation, as well as new or revised guidance and statutory codes of practice. In summer/autumn 2025, consultations are expected on day one unfair dismissal protection, the statutory probation period, some trade union measures, zero-hour contracts, and new rights for pregnant workers. In winter/early 2026, the government plans to consult further on trade union measures, tightening tipping law, collective redundancy and flexible working. The roadmap also sets out the government’s “initial view” on commencement dates. Most of the Trade Union Act 2016 will be repealed at Royal Assent or soon after. Other measures will take effect in April 2026 (including changes to Statutory Sick Pay, simplifying trade union recognition, and day one paternity leave rights) and October 2026 (including changes to requirements on preventing sexual harassment, third-party harassment, tribunal time limits, and the two-tier procurement code). Measures not due to take effect until 2027 include gender pay gap and menopause action plans, changes to the collective redundancy consultation threshold, applying zero-hour contracts to agency workers and the day-one right to unfair dismissal.
Victims and Prisoners Act 2024: Impact on NDA's and Confidentiality Agreements
With effect from 1 October 2025, the Victims and Prisoners Act 2024 will void any provisions in non-disclosure agreements (NDAs), settlement agreements and confidentiality agreements which purport to prevent a victim of crime, or someone who reasonably believes they are a victim, from making disclosures about criminal acts to certain categories of people. Current law already prohibits provisions that prevent whistleblowing disclosures or reporting a crime to police. The new law widens this prohibition to include close family members and victim support services. Disclosures will also be permitted to police and other bodies with powers to investigate criminal conduct (including the FCA and the Information Commissioner’s Office), lawyers, regulated professionals (including healthcare workers, social workers and teachers) and certain regulators. Draft regulations have been put before Parliament to add the Criminal Injuries Compensation Board to these categories. Employers should note the wide definition of a victim, which includes an employee who has suffered harm as a result of having seen, heard of or otherwise directly experienced the effects of criminal conduct. There is no requirement for a conviction or a formal investigation to have taken place, or for the crime to have been reported. These changes highlight the need for caution when using NDAs and confidentiality clauses. Employers should also check that any template agreements expressly carve out all permitted disclosures.
Modern Industrial Strategy: Key Sectors, Workforce Skills, and Regulatory Changes
On 23 June 2025, the government published its Modern Industrial Strategy, a wide-ranging ten-year plan aimed at increasing business investment, particularly in high-growth areas. The strategy includes policy and analysis papers as well as separate plans for eight key sectors (the IS-8): advanced manufacturing, defence, creative industries, clean energy, digital and technologies, life sciences, financial services, and professional and business services. Central to the government’s approach will be investment to create a workforce with the necessary AI, digital, management and data skills. Proposals include increased funding for training courses, strengthened partnerships between employers and educational institutions, and the introduction of a Lifelong Learning Entitlement in January 2027. A new Global Talent Taskforce will be established, reporting to the Prime Minister’s Office and the Treasury. The strategy also sets out a regulation action plan to reduce regulatory barriers and facilitate innovation. This will include assessing the effectiveness of regulators, targeting regulatory changes to support the IS-8 and simplifying corporate reporting requirements.
End of Life Bill Amended to Protect Workers' Rights: Detriment and Dismissal Prohibited
Provisions have been added to the Terminally Ill Adults (End of Life) Bill 2024, which would amend the Employment Rights Act 1996 (ERA) to prohibit detriment and dismissal in connection with the Bill. Individuals would have the right not to participate in assisting a person to end their own life. A new Schedule 3 would amend the ERA to provide protection against any detrimental treatment where a worker has exercised that right. The amendment aims to ensure that workers are protected where they do not wish to participate on the basis of their religion or belief, or for any other reason. In the Government’s view, this ensures compatibility with the right to respect for private and family life under Article 9 of the European Convention on Human Rights. It would also be automatically unfair to dismiss an employee or select them for redundancy on grounds that they have exercised or propose to exercise their rights under the Bill. Although the Bill had its first reading in the House of Lords on 23 June 2025, dates for further stages and implementation have yet to be confirmed.
Equality Act: New Workplace Rules
On 25 April 2025, the Equality and Human Rights Commission (EHRC) published an interim update dealing with the practical consequences of For Women Scotland v Scottish Ministers, where the Supreme Court ruled that references to a person’s sex in the Equality Act 2010 refers solely to biological sex. The EHRC has now amended the interim update to clarify that requirements to provide men and women with separate facilities in workplaces are contained in the Workplace (Health, Safety and Welfare) Regulations 1992. It has also removed the statement that “toilets, washing or changing facilities in lockable rooms (not cubicles) which are intended to be used by one person at a time can be used by either women or men”. There is no further guidance on employers’ obligations or confirmation as to whether “men” and “women” in these regulations should be interpreted in line with the Supreme Court’s ruling. The EHRC’s consultation on updates to the Code of Practice for Services, Public Functions and Associations to incorporate the Supreme Court’s judgement closed on 30 June.
Farmor's School Loses Final Appeal: Discrimination Ruling Stands in Higgs Case
The Supreme Court has refused Farmor’s School’s application for permission to appeal against the Court of Appeal’s decision in Higgs v Farmor’s School, which was published in February 2025. Mrs Higgs was dismissed for gross misconduct after she posted comments on social media which the school considered to be transphobic and homophobic. She argued that her dismissal was based on her religious beliefs and her belief that biological sex cannot be changed. The Court of Appeal upheld Mrs Higgs’ appeal from the Employment Appeal Tribunal, ruling that her dismissal amounted to discrimination on grounds of her protected beliefs and that the school’s actions were not proportionate. Since the Supreme Court has refused leave to appeal, this ruling will stand.
Employment Tribunals Go Digital
HM Courts and Tribunals Service has published minutes of a joint meeting of national user groups of the Employment Tribunals which was held to discuss the progress of new digital working practices. The presidents of the tribunals confirmed that all tribunal offices across Great Britain are now using a unified digital system. The meeting also confirmed that digital recording equipment has been installed in all tribunals, enabling hearings to be recorded where required by a practice direction or presidential guidance. Although the main reforms have been completed, work on improvements to digital processes will continue. This will include amending ET1 and ET3 forms to allow questions on panel composition; functionality for employer contract claims and group claims; and preparations for the implementation of the Employment Rights Bill.
New AI Code of Practice to Focus on Transparency and Fairness
The Information Commissioner’s Office (ICO) has launched an AI and Biometrics Strategy to help ensure that organisations have sufficient safeguards and standards when developing and implementing AI technologies. Key priorities will include the introduction of a statutory code of practice on AI and automated decision-making; working with developers to ensure personal data is used responsibly and lawfully when training generative AI models; and ensuring proper governance of automated decision-making systems, focusing particularly on recruitment and public services. The ICO plans to scrutinise how major employers and recruitment platforms use automated decision-making and their transparency, discrimination and redress procedures. Any organisations supplying or deploying facial recognition technology are likely to be subject to even more detailed scrutiny, although the ICO has indicated that its main focus will be the policing sector. Further consultations on updates to the ICO’s automated decision-making and profiling guidance, and the proposed statutory code, are expected to be published over the next year.
