Last week the government published five factsheets covering the following aspects of the Employment Rights Act 2025 (“ERA”):
Read on to find out more about the critical updates.
The updated factsheets provide information about the changes coming into effect under the ERA and any proposed consultations. Some also contain key statistics and answers to common questions.
Preventing workplace sexual harassment
The ERA amends the Equality Act 2010 requiring employers take “all reasonable steps” to prevent sexual harassment of their employees and permitting regulations that will specify the (non-exhaustive) steps which an employer must take for the purpose of meeting this duty. These steps may include:
The specific steps will not preclude the wider duty to take “all reasonable steps” to prevent sexual harassment as employers will need to consider other preventative steps that are reasonable for them to take.
The enhanced obligation is expected to come into effect in October 2026, with the regulations expected in 2027/28 after consultation. The duty not to permit third-party harassment (whether related to sex or any other protected characteristic) will also come into effect in October 2026
The ERA gives powers to reinstate and strengthen Code of Practice on Workforce Matters in Public Sector Service Contracts (the “two-tier Code”), which was withdrawn in 2010 and replaced by the voluntary “Principles of Good Employment Practice”.
The two-tier Code aims to protect the rights of employees engaged on outsourced public sector
service contracts and maintain the quality of public service delivery by ensuring consistent employment standards. It will set minimum requirements and the circumstances in which they should be applied.
The two-tier Code is expected to be implemented in 2026.
The ERA introduces new powers to establish a Fair Pay Agreement process for the social care sector, to allow for the creation of Social Care Negotiating Bodies who will negotiate minimum pay, terms, and conditions across the sector.
The Fair Pay Agreement is expected to be implemented in 2028 following the establishing of regulations in 2026, and negotiations being held in 2027.
A substantive number of changes regarding Trade Unions will be implemented under the ERA and the Trade Unions factsheet provides helpful detail in respect of this. The headline changes covered by the factsheet are set out below.
Most of the changes are expected to come into effect in October 2026, with consultations launching in Spring 2026, save for the Trade Union Act 2016 being repealed which is expected to come into effect in February 2026.
The qualifying period for protection against unfair dismissal will be reduced from two years to six months and the cap on compensatory awards will also be removed completely.
The government intends to commence the changes on 1 January 2027, with a commencement approach meaning those who already have six months’ service or more as of 1 January 2027 will immediately gain this protection. Further consultation is not expected in respect of these changes.
Simon deMaid comments: "The factsheets offer a useful consolidation of the key changes coming into force under the Employment Rights Act 2025. While the reforms themselves are now well-versed, the guidance helps to clarify how certain provisions are intended to operate in practice, and provides insight into the government’s policy intentions behind the changes.”
If you have any questions on any of the upcoming changes, please contact a member of the team here.
The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.
To contact us, please fill out this form and we will get back in touch as soon as possible. Your personal data will be processed in accordance with our privacy policy which can be found here.
Thank you for your enquiry. We will respond as soon as possible.
