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Employment Rights Act 2025

Type Public General Act
Publication 2025-12-18
Last updated 2026-04-07
State In force
Department Statute Law Database
Source legislation.gov.uk
articles Not indexed
Reform history JSON API

(27BW) (1) This section applies in relation to— (a) a duty imposed on an employer in respect of a worker, and (b) a right conferred on a worker in respect of an employer, by or under any provision of Chapter 2, 3 or 4. (2) The duty or right is excluded if— (a) the worker is employed by the employer under a worker’s contract (“the contract”), (b) a relevant collective agreement contains— (i) terms that expressly exclude the duty or right, and (ii) terms that expressly replace the excluded duty or right, (c) the terms within paragraph (b)(ii) are incorporated into the contract, and (d) the employer notifies the worker in writing of the incorporation and effect of those terms. (3) A relevant collective agreement is a collective agreement that is— (a) in writing, and (b) made by or on behalf of— (i) one or more trade unions which each have a certificate of independence, and (ii) the worker’s employer. (27BX) (1) This section applies in relation to— (a) a duty imposed on a hirer or a work-finding agency in respect of an agency worker, and (b) a right conferred on an agency worker in respect of a hirer or a work-finding agency, by or under any provision of Chapter 5 (including Schedule A1). (2) The duty or right is excluded if— (a) the agency worker is supplied to work for and under the supervision and direction of the hirer by virtue of a worker’s contract (“the contract”) that the agency worker has with another person (“the other party”), (b) a relevant collective agreement contains— (i) terms that expressly exclude the duty or right, and (ii) terms that expressly replace the excluded duty or right, (c) the terms within paragraph (b)(ii) are incorporated into the contract, and (d) the other party notifies the agency worker in writing of the incorporation and effect of those terms. (3) A relevant collective agreement is a collective agreement that is— (a) in writing, and (b) made by or on behalf of— (i) one or more trade unions which each have a certificate of independence, and (ii) the other party. (27BY) (1) For the purposes of sections 27BW and 27BX, it does not matter whether— (a) terms in a collective agreement that expressly replace a duty or right relate to the same subject matter as the duty or right, or (b) a collective agreement ceases to be in force after the terms mentioned in section 27BW(2)(b)(ii) or 27BX(2)(b)(ii) are incorporated into the contract (within the meaning of section 27BW or 27BX, as the case may be), provided the terms continue to be incorporated. (2) Where the duty to make a guaranteed hours offer under Chapter 2 or 5 is excluded by virtue of terms that are incorporated into a contract with a worker or, as the case may be, an agency worker, as mentioned in section 27BW(2)(c) or 27BX(2)(c), during the offer period, the duty ceases to apply. (3) Where— (a) the duty to make a guaranteed hours offer under Chapter 2 or 5 is excluded by virtue of terms that are incorporated into a contract with a worker or, as the case may be, an agency worker, as mentioned in section 27BW(2)(c) or 27BX(2)(c), (b) a guaranteed hours offer has already been made in compliance with the duty, and (c) the worker or agency worker has not accepted the offer, the person who made the offer may withdraw it during the response period by giving a notice to the worker or agency worker. (4) The notice must include a statement to the effect that the offer is withdrawn in consequence of the exclusion of the duty to make a guaranteed hours offer as a result of the incorporation into the worker’s or agency worker’s contract, as mentioned in section 27BW(2)(c) or 27BX(2)(c), of terms contained in a collective agreement that expressly replace that duty. (5) A worker or an agency worker to whom a notice is given in reliance on subsection (3) may present a complaint to an employment tribunal that subsection (3) did not permit the notice to be given. (6) Where a complaint is presented under subsection (5)— (a) by a worker, sections 27BH and 27BI apply in relation to the complaint as they apply in relation to a complaint under section 27BG(7)(b); (b) by an agency worker, paragraphs 10 and 11 of Schedule A1 apply in relation to the complaint as they apply in relation to a complaint under paragraph 8(7)(b) of that Schedule. (7) Subsection (8) applies where— (a) the duty to make a guaranteed hours offer under Chapter 2 or 5 is excluded by virtue of terms that are incorporated into a contract with a worker or, as the case may be, an agency worker, as mentioned in section 27BW(2)(c) or 27BX(2)(c), and (b) the duty ceases to be excluded as a result of the terms ceasing to be incorporated into the contract (including where the contract ceases to be in force). (8) In applying Chapter 2 or 5 for the purposes of the duty after it has ceased to be excluded— (a) in any case where there was a reference period in relation to the duty as it had effect before being excluded, that reference period is to be disregarded; (b) in relation to a worker and the worker’s employer— (i) section 27BA(5)(a) has effect as if for sub-paragraphs (i) and (ii) there were substituted— (i) where the worker is employed by the employer on the day (“the effective day”) after the day on which terms cease to be incorporated as mentioned in section 27BY(7)(b), the effective day, or (ii) where the worker is not so employed, the first day after the effective day on which the worker is employed by the employer, and (ii) section 27BF(3) has effect as if for paragraphs (a) and (b) there were substituted— (a) where the worker is employed by the employer on the day (“the effective day”) after the day on which terms cease to be incorporated as mentioned in section 27BY(7)(b), the effective day, or (b) where the worker is not so employed, the first day after the effective day on which the worker is employed by the employer. (c) in relation to an agency worker and a hirer for and under the supervision and direction of whom the agency worker works, paragraph 1(5)(a) of Schedule A1 has effect as if for sub-paragraphs (i) and (ii) there were substituted— (i) where the agency worker is working for and under the supervision and direction of the hirer on the day (“the effective day”) after the day on which terms cease to be incorporated as mentioned in section 27BY(7)(b), the effective day, or (ii) where the agency worker is not so working, the first day after the effective day on which the agency worker is working for and under the supervision and direction of the hirer, and (d) in relation to an agency worker and the work-finding agency with which the agency worker has a worker’s contract or an arrangement by virtue of which the agency worker is (or is to be) supplied to work for and under the supervision and direction of a hirer, paragraph 7(3) of Schedule A1 has effect as if for paragraphs (a) and (b) there were substituted— (a) where the worker’s contract or arrangement is in force on the day (“the effective day”) after the day on which terms cease to be incorporated as mentioned in section 27BY(7)(b), the effective day, or (b) where it is not in force on the effective day, the first day after the effective day on which it is in force. (27BZ) (1) The Secretary of State may by regulations make further provision for the purposes of section 27BW or 27BX. (2) The regulations may, in particular, make provision about— (a) the effect on a duty in Chapters 2 to 5 of terms being or ceasing to be incorporated as mentioned in section 27BW(2)(c) or 27BX(2)(c), (b) the form and manner in which a notice under section 27BY(3) is to be given, and (c) when a notice under section 27BY(3) is to be treated as having been given. (27BZ1) (1) Terms used in this Chapter that are used in— (a) Chapters 2 to 4 (rights relating to zero hours workers, etc), or (b) Chapter 5 (including Schedule A1) (rights relating to agency workers), have the same meaning as in those Chapters or that Chapter (including that Schedule). (2) In this Chapter, “certificate of independence” means a certificate issued under section 6 of the Trade Union and Labour Relations (Consolidation) Act 1992.

  • (3) In section 203 (restrictions on contracting out), in subsection (2), before paragraph (a) insert—

(za) does not apply to terms of a collective agreement or contract that exclude a duty or right by virtue of provision made by or under Chapter 6 of Part 2A,

.

Amendments relating to sections 1 to 5

6
  • (1) After section 27BZ1 of the Employment Rights Act 1996 (inserted by section 5) insert—

(27BZ2) (1) In this Part— - “agency worker” has the meaning given by section 27BV; - “arrangement” (when used by itself and not as part of the expression “zero hours arrangement”) means an arrangement (whether contractual or non-contractual) other than a worker’s contract; - “specified” means specified in, or determined in accordance with, regulations made by the Secretary of State; - “work-finding agency” has the meaning given by section 27BV; - “zero hours arrangement” means an arrangement under which— an employer and an individual agree terms on which the individual will do any work where the employer makes it available to the individual and the individual agrees to do it, but the employer is not required to make any work available to the individual, nor the individual required to accept it, and in this Part “employer”, in relation to a zero hours arrangement, is to be read accordingly; - “zero hours contract” means a contract of employment or other worker’s contract under which— the undertaking to do work is an undertaking to do so conditionally on the employer making work available to the worker, and there is no certainty that any such work will be made available to the worker. (2) For the purposes of this Part— (a) a person who is, or is treated as, an employer makes work available to a worker or other individual if they request or require the individual to do it; (b) references to work and doing work include references to services and performing them. (27BZ3) (1) Regulations under this Part may— (a) make different provision for different purposes; (b) make provision subject to exceptions. (2) Regulations under this Part may provide that a reference in the regulations to a provision of legislation is to be read as a reference to that provision as amended from time to time.

  • (2) Schedule 2 contains consequential amendments relating to sections 1 to 5.

Repeal of Workers (Predictable Terms and Conditions) Act 2023

7

The Workers (Predictable Terms and Conditions) Act 2023 is repealed.

Exclusivity terms in zero hours arrangements

8
  • (2) In subsection (1), for “their contracts or arrangements” substitute “their worker’s contracts or their arrangements”.
  • (3) In subsection (2)(b), omit “non-contractual”.
  • (4) In subsection (4)—
  • (a) in the words before paragraph (a)—
  • (i) omit “non-contractual”;
  • (ii) after “arrangement”, in the second place it occurs, insert “(whether contractual or non-contractual)”;
  • (b) in the words after paragraph (b), omit “non-contractual”.
  • (5) In subsection (5)(a)(ii), omit “non-contractual”.
  • (6) In subsection (6)—
  • (a) after “provision for” insert

— (a)

;

  • (b) after “does not apply” insert—

(b) exclusivity terms in prescribed categories of zero hours arrangements that are contractual arrangements to be unenforceable

;

  • (c) at the end of the subsection insert “or (as the case may be) an individual is restricted from doing any work otherwise than under a worker’s contract entered into in accordance with the zero hours arrangement.”

Flexible working

Right to request flexible working

9
  • (1) Part 8A of the Employment Rights Act 1996 (flexible working) is amended in accordance with subsections (2) to (6).
  • (2) Section 80G (employer’s duties in relation to application for change to working hours, etc) is amended in accordance with subsections (3) to (5).
  • (3) In subsection (1), for paragraph (b) substitute—

(b) may refuse the application only if— (i) the employer considers that the application should be refused on a ground or grounds listed in subsection (1ZA), and (ii) it is reasonable for the employer to refuse the application on that ground or those grounds. (1ZA) The grounds mentioned in subsection (1)(b) are— (a) the burden of additional costs; (b) detrimental effect on ability to meet customer demand; (c) inability to re-organise work among existing staff; (d) inability to recruit additional staff; (e) detrimental impact on quality; (f) detrimental impact on performance; (g) insufficiency of work during the periods the employee proposes to work; (h) planned structural changes; (i) any other grounds specified by the Secretary of State in regulations.

  • (4) After subsection (1ZA) insert—

(1ZB) If an employer refuses an application under section 80F, the notification under subsection (1)(aa) must— (a) state the ground or grounds for refusing the application, and (b) explain why the employer considers that it is reasonable to refuse the application on that ground or those grounds.

  • (5) After subsection (1D) insert—

(1E) The steps which an employer must take in order to comply with subsection (1)(aza) include, among others, any steps specified in regulations made by the Secretary of State.

  • (6) In section 80H (complaints to employment tribunals), in subsection (1)(a), for “comply with” substitute “act in accordance with”.
  • (7) In section 202 of the Employment Rights Act 1996 (national security), in subsection (2), after paragraph (e) insert—

(eza) Part 8A,

.

Statutory sick pay

Statutory sick pay in Great Britain: removal of waiting period

10
  • (2) In section 151(1) (employer’s liability), for “sections 152 to 154” substitute “sections 153 and 154”.
  • (3) In section 152 (period of incapacity for work)—
  • (b) in subsection (2), for the words from “any” to “is” substitute “a period of one day which is, or of two or more consecutive days each of which is,”.
  • (4) In section 153(1) (period of entitlement), for “second” substitute “first”.
  • (5) In section 154(1) (qualifying days), for “third” substitute “second”.

Statutory sick pay in Great Britain: lower earnings limit etc

11
  • (1) Part 11 of the Social Security Contributions and Benefits Act 1992 (statutory sick pay) is amended as follows.
  • (2) In section 157 (rates of payment), for subsection (1) substitute—

(1) The weekly rate of statutory sick pay that an employer must pay to an employee is the lower of— (a) £118.75, and (b) 80% of the employee’s normal weekly earnings.

  • (3) In Schedule 11 (circumstances in which periods of entitlement to statutory sick pay do not arise), in paragraph 2, omit paragraph (c) (lower earnings limit).

Statutory sick pay in Northern Ireland: removal of waiting period

12
  • (2) In section 147(1) (employer’s liability), for “sections 148 to 150” substitute “sections 149 and 150”.
  • (3) In section 148 (period of incapacity for work)—
  • (b) in subsection (2), for the words from “any” to “is” substitute “a period of one day which is, or of two or more consecutive days each of which is,”.
  • (4) In section 149(1) (period of entitlement), for “second” substitute “first”.
  • (5) In section 150(1) (qualifying days), for “third” substitute “second”.

Statutory sick pay in Northern Ireland: lower earnings limit etc

13
  • (1) Part 11 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (statutory sick pay) is amended as follows.
  • (2) In section 153 (rate of payment), for subsection (1) substitute—

(1) The weekly rate of statutory sick pay that an employer must pay to an employee is the lower of— (a) £118.75, and (b) 80% of the employee’s normal weekly earnings.

  • (3) In Schedule 11 (circumstances in which periods of entitlement to statutory sick pay do not arise), in paragraph 2, omit paragraph (c) (lower earnings limit).

Tips and gratuities, etc

Policy about allocating tips etc: consultation and review

14

(2A) Before producing the first version of the written policy for a place of business, an employer must consult— (a) representatives of an independent trade union recognised by the employer in respect of workers who are likely to be affected by the policy, or representatives appointed or elected by those workers and having authority to receive information and to be consulted about the policy on behalf of those workers, or (b) if there are no such trade union or worker representatives, workers who are likely to be affected by the policy.

(3A) Where an employer makes a written policy available to workers at a place of business under this section, the employer must review the policy from time to time. (3B) A review must be carried out— (a) at least once during the period of three years beginning with the first day on which the first version of the policy is made available (including where that day precedes the coming into force of this subsection), and (b) after that, no more than three years after the completion of the previous review. (3C) An employer must consult persons as described in subsection (2A) as part of every review of the written policy.

(7) An employer who has carried out a consultation required by this section in relation to a written policy for a place of business must make a summary of the views expressed in the consultation available in anonymised form to all workers of the employer at the place of business. (8) In this section “recognised”, in relation to a trade union, has the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992 (see section 178 of that Act).

Entitlements to leave

Parental leave: removal of qualifying period of employment

15

In section 76 of the Employment Rights Act 1996 (entitlement to parental leave), in subsection (1), omit paragraph (a) (and the “and” after it).

Paternity leave: removal of qualifying period of employment

16
  • (1) In section 80A of the Employment Rights Act 1996 (entitlement to paternity leave: birth)—
  • (a) in subsection (1), omit paragraph (a);
  • (b) in subsection (6A), omit paragraph (a).
  • (2) In section 80B of that Act (entitlement to paternity leave: adoption)—
  • (a) in subsection (1), omit paragraph (a);
  • (b) in subsection (6C), omit paragraph (a).

Ability to take paternity leave following shared parental leave

17
  • (1) In section 80A of the Employment Rights Act 1996 (entitlement to paternity leave: birth)—
  • (a) omit subsection (4A);
  • (b) in subsection (6A), omit paragraph (c).
  • (2) In section 80B of that Act (entitlement to paternity leave: adoption)—
  • (a) omit subsection (4A);
  • (b) in subsection (6C), omit paragraph (c).
  • (3) In section 171ZE of the Social Security Contributions and Benefits Act 1992 (rate and period of statutory paternity pay), in subsection (3A), omit paragraph (b) (and the “or” before it).
  • (4) In consequence of the amendments made by subsections (1)(a) and (2)(a), in section 118 of the Children and Families Act 2014, omit subsections (6) and (7).

Bereavement leave

18
  • (2) In Chapter 4 of Part 8, in the heading, for “Parental bereavement leave” substitute “Bereavement leave”.
  • (a) in subsection (1), for “bereaved parent” substitute “bereaved person”;

(2) For the purposes of subsection (1) an employee is a “bereaved person” if the employee satisfies specified conditions as to relationship with a person who has died.

;

  • (c) in subsection (3), for “The conditions” substitute “In a case where the person who has died is a child, the conditions”;

(3A) For the purposes of subsection (1) an employee is also a “bereaved person” if— (a) the employee has suffered a pregnancy loss of a specified kind, or (b) the employee satisfies specified conditions as to relationship with— (i) a person who has suffered a pregnancy loss of a specified kind, or (ii) a child who had been expected to be born had a pregnancy loss of a specified kind not occurred.

;

  • (f) in subsection (5), before “a child” insert “the death of”;

(5A) Provision under subsection (4)(a) must secure that, where an employee is entitled to leave under this section otherwise than in respect of the death of a child, the employee is entitled to at least one week’s leave.

;

  • (h) in subsection (6), for “the date of the child’s death” substitute “the specified day”;

(7) The regulations must secure that, where an employee is eligible under subsection (1) as the result of the death of more than one person, the employee is entitled to leave in respect of each person.

;

  • (i) in the definition of “child”, after “stillbirths” insert “after twenty-four weeks of pregnancy”;
  • (ii) after the definition of “child” insert—
  • “live birth” means the birth of a child born alive;
  • “pregnancy loss” means— the ending of a pregnancy after less than twenty-four weeks of pregnancy in any way other than by a live birth, or the failure of an embryo to become implanted following a transfer carried out in the course of providing treatment services within the meaning of the Human Fertilisation and Embryology Act 1990;
  • “specified” means specified in the regulations;

;

  • (k) in the heading, for “Parental bereavement” substitute “Bereavement”.
  • (8) In section 88 (termination of employment: employments with normal working hours)—
  • (a) in subsection (1)(c), for “parental bereavement leave,” substitute “bereavement leave,”;
  • (b) in subsection (2), for “parental bereavement pay”, in the first place it occurs, substitute “bereavement pay”.
  • (9) In section 89 (termination of employment: employments without normal working hours)—
  • (a) in subsection (3)(b), for “parental bereavement leave,” substitute “bereavement leave,”;
  • (b) in subsection (4), for “parental bereavement pay”, in the first place it occurs, substitute “bereavement pay”.
  • (a) before the definition of “business” insert—
  • “bereavement leave” means leave under section 80EA;

;

  • (b) omit the definition of “parental bereavement leave”.
  • (a) in section 186A (enterprise investment schemes: the number of employees requirement), in subsection (4)(b)(i), for “parental bereavement” substitute “bereavement”;
  • (b) in section 257DJ (seed enterprise investment schemes: the number of employees requirement), in subsection (4)(b)(i), for “parental bereavement” substitute “bereavement”;
  • (c) in section 257MH (tax relief for social investments: the number of employees requirement), in subsection (4)(b)(i), for “parental bereavement” substitute “bereavement”;
  • (d) in section 297A (venture capital trusts: the number of employees requirement), in subsection (4)(b)(i), for “parental bereavement” substitute “bereavement”.

Review of extent of right to time off for public duties

19
  • (1) The Secretary of State must, before the end of the relevant period—
  • (a) review the purposes for which employers are required to permit their employees to take time off in accordance with section 50 of the Employment Rights Act 1996 (right to time off for public duties), and
  • (b) publish a report setting out the findings of the review.
  • (2) In carrying out the review, the Secretary of State must, in particular, consider whether employers should be required to permit their employees to take time off in accordance with that section for the purposes of performing the functions of a special constable.
  • (3) In this section—
  • “the relevant period” means the period of 12 months beginning with the day on which this Act is passed;
  • “special constable” means— a person appointed as a special constable for a police area in England and Wales, a person appointed as a special constable under section 25 of the Railways and Transport Safety Act 2003 (special constables of the British Transport Police Force), or a person appointed as a special constable under section 9 of the Police and Fire Reform (Scotland) Act 2012 (asp 8) (special constables of the Police Service of Scotland).

Protection from harassment and discrimination

Employers to take all reasonable steps to prevent sexual harassment

20

In section 40A of the Equality Act 2010 (employer duty to prevent sexual harassment of employees), in subsection (1), before “reasonable steps” insert “all”.

Harassment by third parties

21

In section 40 of the Equality Act 2010 (employees and applicants: harassment), after subsection (1) insert—

(1A) An employer (A) must not permit a third party to harass a person (B) who is an employee of A. (1B) For the purposes of subsection (1A), A permits a third party to harass B only if— (a) the third party harasses B in the course of B’s employment by A, and (b) A failed to take all reasonable steps to prevent the third party from doing so. (1C) In this section “third party” means a person other than— (a) A, or (b) an employee of A.

Sexual harassment: power to make provision about “reasonable steps”

22
  • (1) The Equality Act 2010 is amended as follows.
  • (2) In Part 5 (work), in Chapter 1 (employment, etc), after section 40A insert—

(40B) (1) Regulations may specify steps that are to be regarded as “reasonable” for the purpose of determining whether, for the purposes of this Act, an employer (A) has taken, or failed to take, all reasonable steps to prevent sexual harassment of an employee of A (see, in particular, sections 40 and 40A and section 109). (2) The steps that may be specified in regulations under this section include, among others— (a) carrying out assessments of a specified description; (b) publishing plans or policies of a specified description; (c) steps relating to the reporting of sexual harassment; (d) steps relating to the handling of complaints. (3) Regulations under this section that specify any steps may require an employer to have regard to specified matters when taking those steps. (4) In this section— - “sexual harassment” means harassment of the kind described in section 26(2) (unwanted conduct of a sexual nature); - “specified” means specified in the regulations.

  • (3) In Part 16 (general and miscellaneous), in section 208(5) (regulations subject to affirmative procedure), after paragraph (a) insert—

(aa) regulations under section 40B (prevention of sexual harassment: power to specify “reasonable steps”);

.

Protection of disclosures relating to sexual harassment

23

(da) that sexual harassment has occurred, is occurring or is likely to occur,

.

  • (3) In section 43L(1) (other interpretative provisions), after the definition of “the relevant failure” insert—

Right not to be unfairly dismissed: qualifying period and compensation

24

(202A) (1) Any provision in an agreement between an employer and a worker of the employer (whether a worker’s contract or not) is void in so far as it purports to preclude the worker from making— (a) an allegation of, or a disclosure of information relating to, relevant harassment or discrimination, or (b) an allegation, or a disclosure of information, relating to the response of an employer of the worker to— (i) relevant harassment or discrimination, or (ii) the making of an allegation or disclosure within paragraph (a). (2) Harassment or discrimination is “relevant” for the purposes of subsection (1) if— (a) the harassment or discrimination consists of, or is alleged to consist of, conduct engaged in by— (i) an employer of the worker, or (ii) another worker of such an employer, or (b) the person who is, or is alleged to be, the victim of the harassment or discrimination is— (i) the worker, or (ii) another worker of an employer of the worker. (3) Subsection (1) does not apply to provision in an agreement (an “excepted agreement”) that satisfies such conditions as the Secretary of State may specify by regulations. (4) But the Secretary of State may by regulations provide that any provision in an excepted agreement is void in so far as it purports to preclude the worker from making an allegation or disclosure within subsection (1)(a) or (b)— (a) to a specified description of person; (b) for a specified purpose; (c) in specified circumstances. (5) The Secretary of State may by regulations— (a) provide for this section to have effect as if references to a worker included a specified description of individual who is not a worker as defined by section 230(3) but who— (i) works or worked, or is or was provided with work experience or training, in specified circumstances, or (ii) has entered into, or works or worked under, a relevant contract of a specified description; (b) make provision as to who is to be regarded as an employer of such an individual for the purposes of this section. (6) In subsection (5), “relevant contract” means any contract, other than a contract of employment, whether express or implied and (if express) whether oral or in writing, by which an individual undertakes to do or perform (whether personally or otherwise) any work or services for another party to the contract whose status is by virtue of the contract that of a client or customer of any profession or business undertaking carried on by the individual. (7) Regulations under this section may— (a) make different provision for different purposes; (b) make consequential provision. (8) For the purposes of this section, the holding, otherwise than under a contract of employment, of the office of constable or an appointment as a police cadet is to be treated as employment by the relevant officer under a contract of employment. “The relevant officer” has the meaning given by section 43KA(2). (9) Nothing in this section affects the operation of any other enactment or rule of law by virtue of which provision in an agreement may be void. (10) In this section— - “discrimination” means discrimination within any of sections 13, 15 to 19A and 21(2) of the Equality Act 2010; - “harassment” means harassment of the kind described in subsection (1), (2) or (3) of section 26 of that Act; - “specified” means specified in the regulations.

  • (3) In section 192(2) (provisions of Act which have effect in relation to armed forces)—

(f) this Part, apart from section 202A, and (g) Parts 14 and 15.

  • (4) In section 193 (provisions of Act which do not apply in relation to the security services), for “section 47B” substitute “sections 47B and 202A”.
  • (5) In section 236(3) (regulations subject to affirmative procedure), after “125(7)” insert “, 202A”.

Dismissal

Right not to be unfairly dismissed: qualifying period and compensation

25
  • (1) Part 10 of the Employment Rights Act 1996 (unfair dismissal) is amended in accordance with subsections (2) and (3).
  • (2) In section 108 (qualifying period of employment)—
  • (a) in subsection (1), for “two years” substitute “six months”;
  • (b) in subsection (2), for ““two years”” substitute ““six months””.
  • (3) Omit section 124 (limit of compensatory award etc).
  • (4) In section 209 of that Act (powers to amend Act), in subsection (5), omit “108(1),”.
  • (5) Schedule 3 contains minor and consequential amendments relating to this section.

Dismissal during pregnancy

26
  • (1) Part 5B of the Employment Rights Act 1996 (redundancy during a protected period of pregnancy) is amended as follows.
  • (2) Section 49D (redundancy during a protected period of pregnancy) is amended in accordance with subsections (3) to (5).
  • (3) In the heading, after “Redundancy” insert “or dismissal”.
  • (4) After subsection (1) insert—

(1A) The Secretary of State may, by regulations, make provision about dismissal (other than by reason of redundancy) during, or after, a protected period of pregnancy.

  • (5) In subsection (3), after “subsection (1)” insert “or (1A)”.
  • (6) After section 49D insert—

(49E) Regulations under section 49D may— (a) make provision about notices to be given, evidence to be produced and other procedures to be followed by employees and employers; (b) make provision for the consequences of failure to give notices, to produce evidence or to comply with other procedural requirements; (c) make provision for the consequences of failure to act in accordance with a notice given by virtue of paragraph (a); (d) make special provision for cases where an employee has a right which corresponds to a right under section 49D and which arises under a contract of employment or otherwise; (e) make provision modifying the effect of Chapter 2 of Part 14 (calculation of a week’s pay) in relation to an employee who is or has been absent from work during, or after, a protected period of pregnancy; (f) make provision applying, modifying or excluding an enactment, in such circumstances as may be specified and subject to any conditions specified, in relation to a person during, or after, a protected period of pregnancy; (g) make different provision for different cases or circumstances.

  • (7) In the heading of Part 5B, after “Redundancy” insert “or dismissal”.

Dismissal following period of statutory family leave

27
  • (1) Part 8 of the Employment Rights Act 1996 (leave for family reasons) is amended as follows.
  • (2) In section 74 (maternity leave: redundancy and dismissal), in subsection (2), after “during” insert “, or after,”.
  • (3) In section 75C (adoption leave: redundancy and dismissal), in subsection (1)(b), after “during” insert “, or after,”.
  • (4) In section 75J (shared parental leave: redundancy and dismissal), in subsection (1)(b), after “during” insert “, or after,”.
  • (5) In section 80D (paternity leave: special cases)—
  • (a) in subsection (1A)(b), after “bereaved employee” insert “, or dismissal of a bereaved employee (other than by reason of redundancy),”;
  • (b) in subsection (3)(b), for the words from “where” to the end substitute “where the relevant person dies.

In paragraph (b) “the relevant person” means the person by reference to whom the employee satisfied the conditions specified by virtue of subsection (1)(c) of that section so as to entitle the employee to that leave.

  • (6) In section 80EH (neonatal care leave: special cases), in subsection (1)(b), after “during” insert “or after”.

Dismissal for failing to agree to variation of contract, etc

28
  • (1) The Employment Rights Act 1996 is amended as follows.
  • (2) Part 10 (unfair dismissal) is amended in accordance with subsections (3) to (5).
  • (3) Before section 105 insert—

(104I) (1) An employee who is dismissed is to be regarded for the purposes of this Part as unfairly dismissed if— (a) the employee was employed for the purposes of a business carried on by the employer, and (b) the reason (or, if more than one, the principal reason) for the dismissal is a reason within subsection (2) or (3). (2) The reason within this subsection is that— (a) the employer sought to vary the employee’s contract of employment to make a restricted variation (see subsection (5)), and (b) the employee— (i) did not agree to the restricted variation, or (ii) where the employer sought to make more than one variation, did not agree to a number of variations that included the restricted variation. (3) The reason within this subsection is to enable the employer to employ another person, or to re-engage the employee, under a varied contract of employment to carry out the same duties, or substantially the same duties, as the employee carried out before being dismissed. (4) For the purposes of subsection (3), a contract of employment is a “varied” contract of employment if— (a) the terms of the contract are not the same as the terms of the contract of employment under which the employee worked before being dismissed, and (b) one or more of the differences between the two sets of terms constitutes a restricted variation (see subsection (5)); and, in a case where subsection (3) applies, any reference in this section to the restricted variation is to be read accordingly. (5) In this section “restricted variation” means any of the following— (a) a reduction of, or removal of an entitlement to, any sum payable to an employee in connection with the employment (but see subsection (6)); (b) where the amount of any sum payable to an employee in connection with the employment is determined by reference to a measure of the amount of work done by the employee (including a measure referable to results achieved by the employee), a variation of that measure; (c) a variation of any term or condition relating to pensions or pension schemes; (d) a variation of the number of hours which an employee is required to work; (e) a variation of the timing or duration of a shift which meets such conditions as may be specified in regulations made by the Secretary of State; (f) a reduction in the amount of time off which an employee is entitled to take; (g) a variation of a description specified in regulations made by the Secretary of State; (h) the inclusion in a contract of employment of a term enabling the employer to make any variation within any of the preceding paragraphs without the employee’s agreement. (6) The Secretary of State may by regulations provide that a reference in subsection (5) to a sum payable to an employee in connection with the employment does not include a reference to— (a) a sum payable in respect of— (i) any expenses incurred by an employee; (ii) any expenses of a specified description incurred by an employee; (iii) any expenses incurred by an employee other than expenses of a specified description; (b) a payment or benefit in kind, a payment or benefit in kind of a specified description, or a payment or benefit in kind other than one of a specified description. In this subsection “specified” means specified in the regulations. (7) Subsection (1) does not apply in relation to an employee if on the effective date of termination the employee has not yet started work. (8) In the case of an employer that is not a local authority, subsection (1) does not apply in relation to an employee if the employer shows that— (a) the reason for the restricted variation was to eliminate, prevent or significantly reduce, or significantly mitigate the effect of, any financial difficulties which at the time of the dismissal were affecting, or were likely in the immediate future to affect— (i) the employer’s ability to carry on the business as a going concern, or (ii) where the employer is a public sector employer, the financial sustainability of carrying out the employer’s statutory functions, and (b) in all the circumstances the employer could not reasonably have avoided the need to make the restricted variation. (9) In the case of an employer that is a local authority, subsection (1) does not apply in relation to an employee if— (a) at the time of the dismissal, a relevant intervention direction has effect in relation to the authority, (b) the relevant intervention direction— (i) specifies that the reason, or one of the reasons, for the giving of the direction is that the authority is undergoing financial difficulties, and (ii) contains provision relating to the financial management or financial governance of the authority, and (c) the authority shows that— (i) the reason for the restricted variation was to eliminate or significantly reduce, or significantly mitigate the effect of, any of the financial difficulties referred to in paragraph (b)(i), and (ii) in all the circumstances the authority could not reasonably have avoided the need to make the restricted variation. (10) In determining whether— (a) in the case of a public sector employer (other than a local authority), subsection (8)(b) is met, or (b) in the case of a local authority, subsection (9)(c)(ii) is met, an employment tribunal must apply the same principles as would be applied by a court on an application for judicial review. (11) Where the employer shows that the conditions in paragraphs (a) and (b) of subsection (8) are met, or (where the employer is a local authority) the conditions in paragraphs (a), (b) and (c) of subsection (9) are met, the matters that must be considered in determining the question whether the dismissal is fair or unfair include the following— (a) any consultation carried out by the employer with the employee about varying the employee’s contract of employment; (b) if the employee is of a description in respect of which an independent trade union is recognised by the employer, any consultation carried out by the employer with that trade union; (c) if the employee is not of a description in respect of which an independent trade union is recognised by the employer, any consultation carried out by the employer with any other person representing the interests of the employee that, at the time of the dismissal, had authority to receive information and to be consulted about the dismissal on the employee’s behalf; (d) anything offered to the employee by the employer in return for agreeing to the restricted variation; (e) any matters specified for the purposes of this subsection in regulations made by the Secretary of State. (12) In this section— - “English local authority” means— a county council or district council in England; a London borough council; the Greater London Authority; the Council of the Isles of Scilly; the Common Council of the City of London in its capacity as a local authority, a police authority or a port health authority; a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009; a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023; - “local authority” means— an English local authority, a Welsh local authority, or a Scottish local authority; - “public sector employer” means a person that— is wholly or mainly funded from public funds, is under a statutory duty to carry out any functions of a public nature, and so far as carrying out those functions, does not operate on a commercial basis; - “recognised”, in relation to a trade union, has the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992 (see section 178 of that Act); - “relevant intervention direction” means— in the case of an English local authority, a direction under section 15(5) or (6)(a) of the Local Government Act 1999 (powers to deal with failure to comply with duties relating to best value authorities); in the case of a Welsh local authority, a direction under section 106 or 107 of the Local Government and Elections (Wales) Act 2021 (asc 1) (intervention powers of Welsh Ministers); in the case of a Scottish local authority, an enforcement direction under section 24 of the Local Government in Scotland Act 2003 (asp 1) relating wholly or partly to a failure of the authority to comply with its duties under section 1 of that Act (local authorities’ duty to secure best value); - “Scottish local authority” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; - “statutory duty” means a duty imposed by or under any enactment, including— a Measure or Act of the National Assembly for Wales or an Act of Senedd Cymru, and an Act of the Scottish Parliament; - “statutory functions”, in relation to a public sector employer, means functions of a public nature which the employer is under a statutory duty to carry out; - “Welsh local authority” means— a county council or county borough council in Wales; a corporate joint committee established under Part 5 of the Local Government and Elections (Wales) Act 2021. (13) The reference in subsection (9)(a) to a relevant intervention direction includes a relevant intervention direction given before the day on which the Employment Rights Act 2025 was passed. (104J) (1) This section applies to the dismissal of an employee if— (a) the employee was employed for the purposes of a business carried on by the employer, and (b) the reason (or, if more than one, the principal reason) for the dismissal is a reason within subsection (2) or (3). (2) The reason within this subsection is that— (a) the employer sought to vary the employee’s contract of employment, (b) the variation was not a restricted variation or, where the employer sought to make more than one variation, none of the variations was a restricted variation, and (c) the employee did not agree to the variation. (3) The reason within this subsection is to enable the employer to employ another person, or to re-engage the employee, under a varied contract of employment to carry out the same duties, or substantially the same duties, as the employee carried out before being dismissed. (4) For the purposes of subsection (3), a contract of employment is a “varied” contract of employment if— (a) the terms of the contract are not the same as the terms of the contract of employment under which the employee worked before being dismissed, and (b) none of the differences between the two sets of terms constitutes a restricted variation; and, in a case where subsection (3) applies, any reference in this section to the variation is to be read accordingly. (5) The matters that must be considered in determining the question whether the dismissal is fair or unfair include the following— (a) the reason for the variation; (b) any consultation carried out by the employer with the employee about varying the employee’s contract of employment; (c) if the employee is of a description in respect of which an independent trade union is recognised by the employer, any consultation carried out by the employer with that trade union; (d) if the employee is not of a description in respect of which an independent trade union is recognised by the employer, any consultation carried out by the employer with any other person representing the interests of the employee that, at the time of the dismissal, had authority to receive information and to be consulted about the dismissal on the employee’s behalf; (e) anything offered to the employee by the employer in return for agreeing to the variation; (f) any matters specified for the purposes of this subsection in regulations made by the Secretary of State. (6) In this section— - “recognised”, in relation to a trade union, has the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992 (see section 178 of that Act); - “restricted variation” has the same meaning as in section 104I. (104K) (1) An employee who is dismissed is to be regarded for the purposes of this Part as unfairly dismissed if— (a) the employee was employed for the purposes of a business carried on by the employer, and (b) the reason (or, if more than one, the principal reason) for the dismissal is to enable the employer to replace the employee with an individual who is not an employee of the employer. (2) For the purposes of this section— (a) an employer replaces an employee with an individual who is not an employee of the employer if (and only if)— (i) the individual, or the individual taken together with one or more employees of the employer or other individuals, is to carry out activities, in pursuance of a relevant contract, for the purposes of the employer’s business, (ii) those activities are the same, or substantially the same, activities as the employee, or the employee taken together with one or more other employees of the employer, carried out before being dismissed, and (iii) the employee’s dismissal is not wholly or mainly attributable to the fact that the requirements of the employer’s business for those activities to be carried out have ceased or diminished or are expected to cease or diminish; and any reference in this section to replacing an employee is to be read accordingly; (b) a reference to replacing an employee with an individual who is not an employee of the employer includes the case where the individual is the one who has been dismissed; (c) “relevant contract”, in relation to an employer, means a contract, other than a contract of employment, to which the employer is a party (whether or not the individual carrying out activities in pursuance of the contract is a party to it). (3) Subsection (1) does not apply in relation to an employee if on the effective date of termination the employee has not yet started work. (4) In the case of an employer that is not a local authority, subsection (1) does not apply in relation to an employee if the employer shows that— (a) the reason for the replacement was to eliminate, prevent or significantly reduce, or significantly mitigate the effect of, any financial difficulties which at the time of the dismissal were affecting, or were likely in the immediate future to affect— (i) the employer’s ability to carry on the business as a going concern, or (ii) where the employer is a public sector employer, the financial sustainability of carrying out the employer’s statutory functions, and (b) in all the circumstances the employer could not reasonably have avoided the need to replace the employee. (5) In the case of an employer that is a local authority, subsection (1) does not apply in relation to an employee if— (a) at the time of the dismissal, a relevant intervention direction has effect in relation to the authority, (b) the relevant intervention direction— (i) specifies that the reason, or one of the reasons, for the giving of the direction is that the authority is undergoing financial difficulties, and (ii) contains provision relating to the financial management or financial governance of the authority, and (c) the authority shows that— (i) the reason for the replacement was to eliminate or significantly reduce, or significantly mitigate the effect of, any of the financial difficulties referred to in paragraph (b)(i), and (ii) in all the circumstances the authority could not reasonably have avoided the need to replace the employee. (6) In determining whether— (a) in the case of a public sector employer (other than a local authority), subsection (4)(b) is met, or (b) in the case of a local authority, subsection (5)(c)(ii) is met, an employment tribunal must apply the same principles as would be applied by a court on an application for judicial review. (7) Where the employer shows that the conditions in paragraphs (a) and (b) of subsection (4) are met, or (where the employer is a local authority) the conditions in paragraphs (a), (b) and (c) of subsection (5) are met, the matters that must be considered in determining the question whether the dismissal is fair or unfair include the following— (a) any consultation carried out by the employer with the employee about replacing the employee; (b) if the employee is of a description in respect of which an independent trade union is recognised by the employer, any consultation carried out by the employer with that trade union; (c) if the employee is not of a description in respect of which an independent trade union is recognised by the employer, any consultation carried out by the employer with any other person representing the interests of the employee that, at the time of the dismissal, had authority to receive information and to be consulted about the dismissal on the employee’s behalf; (d) any matters specified for the purposes of this subsection in regulations made by the Secretary of State. (8) In this section— - “contract” means a contract whether express or implied and (if it is express) whether oral or in writing; - “English local authority” means— a county council or district council in England; a London borough council; the Greater London Authority; the Council of the Isles of Scilly; the Common Council of the City of London in its capacity as a local authority, a police authority or a port health authority; a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009; a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023; - “local authority” means— an English local authority, a Welsh local authority, or a Scottish local authority; - “public sector employer” means a person that— is wholly or mainly funded from public funds, is under a statutory duty to carry out any functions of a public nature, and so far as carrying out those functions, does not operate on a commercial basis; - “recognised”, in relation to a trade union, has the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992 (see section 178 of that Act); - “relevant intervention direction” means— in the case of an English local authority, a direction under section 15(5) or (6)(a) of the Local Government Act 1999 (powers to deal with failure to comply with duties relating to best value authorities); in the case of a Welsh local authority, a direction under section 106 or 107 of the Local Government and Elections (Wales) Act 2021 (asc 1) (intervention powers of Welsh Ministers); in the case of a Scottish local authority, an enforcement direction under section 24 of the Local Government in Scotland Act 2003 (asp 1) relating wholly or partly to a failure of the authority to comply with its duties under section 1 of that Act (local authorities’ duty to secure best value); - “Scottish local authority” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; - “statutory duty” means a duty imposed by or under any enactment, including— a Measure or Act of the National Assembly for Wales or an Act of Senedd Cymru, and an Act of the Scottish Parliament; - “statutory functions”, in relation to a public sector employer, means functions of a public nature which the employer is under a statutory duty to carry out; - “Welsh local authority” means— a county council or county borough council in Wales; a corporate joint committee established under Part 5 of the Local Government and Elections (Wales) Act 2021. (9) The reference in subsection (5)(a) to a relevant intervention direction includes a relevant intervention direction given before the day on which the Employment Rights Act 2025 was passed.

  • (4) In section 105 (redundancy), in the heading, after “Redundancy” insert “: other cases”.
  • (5) In section 108 (qualifying period of employment), in subsection (3), before paragraph (h) insert—

(go) subsection (1) of section 104I (read with subsections (7) to (9) of that section) applies, (gp) subsection (1) of section 104K (read with subsections (3) to (5) of that section) applies,

.

  • (6) In section 236 (orders and regulations), in subsection (3) (regulations subject to affirmative procedure), after “99,” insert “104I, 104J(5)(f), 104K(7)(d),”.

Part 2 — Other matters relating to employment

Procedure for handling redundancies

Collective redundancy: extended application of requirements

29
  • (2) In section 188 (duty of employer to consult representatives)—

(A1) Subsection (1) applies where an employer is proposing to dismiss as redundant within a period of 90 days or less— (a) at least the threshold number of employees (see section 195A), or (b) 20 or more employees at one establishment.

;

  • (b) in subsection (1), for the words from “Where” to “the employer” substitute “The employer”;

(2A) This section does not require the employer to— (a) consult all of the appropriate representatives together, or (b) undertake the consultation with a view to reaching the same agreement with all of the appropriate representatives.

;

  • (i) in paragraph (c), at the beginning insert “where the employees whom it is proposed to dismiss as redundant are at only one establishment,”;

(ca) where the employees whom it is proposed to dismiss as redundant are at more than one establishment— (i) the total number of employees of any such description employed by the employer, and (ii) details of the establishments at which those employees are employed,

.

  • (3) In section 193 (duty of employer to notify Secretary of State of certain redundancies)—

(1A) Subsection (2) applies where an employer is proposing to dismiss as redundant within a period of 90 days or less— (a) at least the threshold number of employees (see section 195A), or (b) 20 or more employees at one establishment.

;

  • (i) for the words from “An employer” to “period” substitute “The employer”;

(2A) The notice must be given— (a) before the employer gives notice to terminate an employee’s contract of employment in respect of any of the dismissals; (b) at least 30 days before the first of the dismissals takes effect, or, where the employer is proposing to dismiss 100 or more employees as mentioned in subsection (1A), at least 45 days before the first of the dismissals takes effect.

;

  • (f) in subsection (4)(a), omit the words from “in relation to the establishment” to the end;
  • (b) in subsection (2), for “section 193(1) or (2)” substitute “section 193(2)”.

(195A) (1) In this Chapter references to the threshold number of employees are references to the number of employees determined in accordance with regulations made by the Secretary of State under this section. (2) Regulations under this section may (among other things) provide that the number is— (a) a specified number; (b) a number determined by reference to a specified percentage of employees; (c) a number that is the highest or lowest of two or more numbers, whether those numbers are specified numbers, determined by reference to a specified percentage of employees, or determined in another way specified in the regulations. (3) But the regulations may not provide in any case for the threshold number of employees to be lower than 20. (4) For the purposes of determining a number by reference to a specified percentage of employees, the regulations may make provision for determining how many employees an employer has, including (among other things)— (a) provision about the time by reference to which that determination is to be made; (b) provision excluding employees of a specified description from being taken into account in that determination. (5) Regulations under this section may make different provision for different purposes, including (among other things)— (a) different provision in respect of different provisions of this Chapter; (b) different provision in respect of different descriptions of employer. (6) Regulations under this section may contain such incidental, supplementary or transitional provision as appears to the Secretary of State to be necessary or expedient. (7) Regulations under this section are to be made by statutory instrument. (8) A statutory instrument containing regulations under this section (whether alone or with other provision) may not be made unless a draft of the instrument is laid before and approved by a resolution of each House of Parliament. (9) In this section “specified” means specified in the regulations.

  • (a) in paragraph (a), for “188(2) and 193(1)” substitute “188(1A) and 193(2A)(b)”;
  • (b) in the words after paragraph (b), for “188(2) and 193(1)” substitute “188(1A) and 193(2A)(b)”.
  • (7) In section 198A (employees being transferred to the employer from another undertaking)—
  • (a) in subsection (1)(b), for the words from “20 or more employees” to “or less,” substitute

within a period of 90 days or less— (i) at least the threshold number of employees (see section 195A), or (ii) 20 or more employees at one establishment,

;

  • (i) for “and as if” substitute “and, where relevant, as if”;
  • (ii) for “(1)(b)” substitute “(1)(b)(ii)”.

Collective redundancy consultation: protected period

30
  • (1) Chapter 2 of Part 4 of the Trade Union and Labour Relations (Consolidation) Act 1992 (procedure for handling redundancies) is amended as follows.
  • (2) In section 189 (duty to consult representatives: complaint and protective award), in subsection (4), in the words after paragraph (b), for “90” substitute “180”.
  • (3) In section 197 (power to vary provisions), in subsection (1)(b), for “periods” substitute “period”.

Collective redundancy notifications: ships’ crew

31

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