To update Members of the Human Resources and Council Tax Committee on the implications of the Employment Rights Act 2025 for the Council’s employment policies, procedures and working practices. The report outlines the action being taken to maintain compliance with current and forthcoming employment legislation and to support consistent, fair and effective people management across the Council.

The Committee heard that the Employments Rights Act 2025 had received Royal Assent on 18 December 2025 and that it had introduced a significant programme of employment law reform, with provisions being implemented in phases during 2026 and 2027.

Members were told that, in response, the Council had undertaken a comprehensive compliance audit of its employment policies, procedures and working practices. That had ensured the current requirements were reflected, areas that had required further action had been identified and preparations were in place for forthcoming legislative changes where implementation dates, regulations or statutory guidance were still awaited.

Officers informed the Committee that the audit had resulted in a prioritised action plan to manage compliance risk and support timely policy review. A number of core employment policies had already been updated to address identified gaps, reflect changes now in force, and prepare for further reforms expected in October 2026, January 2027 and later during 2027.

The Committee was made aware that the key implementation dates for the phased introduction of the Employment Rights Act 2025 were summarised below, based on the Government’s published implementation timeline. Future implementation dates remained subject to commencement regulations, consultation and/or further statutory guidance where applicable.

6 April 2026

• Collective redundancy protective award – doubling the maximum period of protective award from 90 days to 180 days;
• Day 1 Paternity Leave and Unpaid Parental Leave;
• Strengthened protection for workers who ‘blow the whistle’ on sexual harassment;
• Bereaved Partners’ Paternity Leave – enabling bereaved fathers and partners to take up to 52 weeks’ leave if the mother or primary adopter died within the first year of the child’s life;
• Statutory Sick Pay (SSP) – removing the Lower Earnings Limit (LEL) and waiting period; and
• Action plans on gender equality, with employers with 250 or more employees encouraged to publish steps being taken to reduce the gender pay gap and support employees experiencing menopause.

7 April 2026

• The establishment of the Fair Work Agency.

August 2026 (subject to commencement and/or further statutory guidance)

• Electronic and workplace balloting for Statutory Trade Union Ballots.

October 2026 (subject to commencement and/or further statutory guidance)

• The duty to inform workers of the right to join a Trade Union;
• Requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees;
• Introducing employer obligations in relation to third-party harassment; and
• Employment tribunal time limits.

January 2027 (subject to commencement and/or further statutory guidance)

• Reduction of the unfair dismissal qualifying period from two years to six months for dismissals from 1 January 2027, alongside changes to compensatory awards for successful unfair dismissal claims, including removal of the statutory cap. Compensation would continue to be assessed by employment tribunals by reference to actual and projected losses evidenced by the claimant.

During 2027 (subject to commencement and/or further statutory guidance)

• Mandatory gender equality action plans and menopause action plans, following the voluntary action plan arrangements introduced from April 2026;
• Enhanced dismissal protections for pregnant women and new mothers;
• Commencement of regulations setting out specific steps that employers must take to prevent sexual harassment, following consultation;
• Collective redundancy consultation threshold changes;
• Flexible working reforms;
• Bereavement leave, including pregnancy loss; and
• Introduction of the right to guaranteed hours, reasonable notice of shifts and short notice payments.

It was moved by Councillor G Stephenson, seconded by Councillor Guglielmi and unanimously:-

RESOLVED that:-

a)    the contents of the Officer report (A.2) be noted, including the actions taken to date under the relevant Officer delegation arrangements to ensure the Council’s employment policies, procedures and working practices remain compliant with the Employment Rights Act 2025; and

b)    the Committee notes that Officers will continue to review and update the Council’s employment policies, procedures and working practices as further provisions of the Employment Rights Act 2025 are implemented during 2026 and 2027, and that further informatives will be provided, as necessary, to the Human Resources and Council Tax Committee on resulting policy changes in accordance with the Council’s governance arrangements.