October Newsletter

As we move into Autumn we receive details of the next set of changes under the Employment Rights Act 2025, taking us into the new year and beyond.

In this issue I cover:

Employment law update - the ERA, what’s happening and when AND details of a free briefing you can attend to find out more!

Statutory rates and entitlements

Right to work checks - are you doing these properly (or at all?)

I love you to email your comments and feedback on topics you'd like me to cover in future newsletters

Employment Law update - Employment Rights Act 2025 - what’s happening and when?

The key changes due to take place this October are:

1. Workplace Harassment: Employers are legally required to take "all reasonable steps" to prevent sexual harassment (raising the standard from just "reasonable steps") and are liable for third-party harassment, eg, from clients or customers unless all preventative steps were taken. My July Newsletter covered this in detail;

2. Trade Union Rights: Unions gain the right to ask to access workplaces with 21 or more employees. for the purpose of meeting, supporting, representing, recruiting or organising workers (whether or not they are members of a trade union) as well as to facilitate collective bargaining. Access is requested via the employer. The Government has released a code of practice setting out the provisions in detail;

3. Tribunal Time Limits: The period to bring most employment tribunal claims is extended from three months to six months.

Changes from January 2027

Key Change: From 1 January, employers are required to follow all legal dismissal process steps to remove an employee with 6+ months service, ie;

• Notify the employee, in writing, that they are required to attend a meeting at which a potential outcome is their dismissal, providing reasonable advance notice;

• Inform the employee of their legal right to be accompanied by a trade union representative or a work colleague;

• Provide a report, or at least clear information and evidence about the potential reason for dismissal that will be considered at the meeting so the employee can respond;

• Provide the right of appeal against the outcome.

I advise that you shorten any 6 months probationary period to 5 months as a pragmatic way to manage out any unsuitable employees through a “light touch” dismissal process before they have achieved 6 months service.

Don’t be afraid to extend probation if needed, but communicate and document the reasons well and follow a full dismissal process if you need to part ways with the employee at the end of the extension.

Puzzled? Have a look at my video which goes into more detail (5 minutes), and re-read the May newsletter for guidance on following a robust probation process.

Other changes to be aware of

1. Employers should positively promote their employees right to join a union (this was originally due to come into force in October, but has been pushed back to January). I advise that you include this reference in the contract of employment and staff handbook if you have one;

2. Extended bereavement leave rights - the Government is currently consulting on plans to extend current statutory bereavement leave provisions including providing employees with the right to take leave following pregnancy loss before 24 weeks. The proposed provisions provide additional clarification of the nature of relationships which will be entitled to bereavement leave following the death of a loved one which some employers may welcome. The current indication is that new bereavement leave entitlements will be unpaid and will be introduced from April 2027.

Statutory Pay Rates and Allowances

National Living (NLW) Wage Rates by hourly rate at April 26 (due to increase Apr 27)

• For workers aged 21 and above £12.71

• For workers aged 18 to 20 years: £10.85

• For workers aged 16 and 17 who are above school age and workers in an Apprenticeship scheme who are aged under 19, or who are aged 19 whilst they are in the first year of their Apprenticeship: £8.00

The Real Living Wage Campaign sets a living wage rate based on the cost of living. The campaign encourages companies to pay voluntarily, and is subscribed to by over 14,000 UK employers.  The hourly rate is currently £13.45 an hour and £14.80 in London.

Statutory Sick Pay is paid at the rate of £123.25 or 80% of average weekly earnings if below this amount from the first day of absence.

Maternity, Paternity, Adoption, Shared Parental leave and Statutory Bereavement leave are paid at the rate of £194.32 per week where employees meet the qualifying criteria. 90% of average earnings is paid for the first 6 weeks of Maternity and Adoption leave.

Right to work checks - are you doing these properly (or at all?)

The Government has extended the circumstances under which employers must carry out a legal check that their employees have the right to work in the UK. Guidance on these changes is provided by Leeds based lawyers Freeths. Regardless of whether the new circumstances apply to your businesss it serves a useful reminder to make sure that you are undertaking the checks properly.

A right to work check should be performed before or on the employees first working day. If the employer doesn’t record that the check has taken place it will be impossible to evidence if challenged (eg, if HMRC undertake a spot check).

In order to prepare for the changes I advise employers to;

1. Audit your HR files to ensure that you have on file evidence that a right to work check has been completed for each and every current employee and;

2. To undertake any checks now if you find that any are missing. 

A robust right to work check for someone with a British passport is to take a photocopy of the front page and ID page of the employees passport, and store this along with a signed and dated document saying who completed the check and to verify that the original passport was seen and is a likeness of the individual. The check should be stored securely in an HR system, database or paper file and should be retained for the duration of the employees employment and two years after they leave.

A non-British employee should have additional documentation to confirm their right to work which is usually obtained via a Share Code. If they are unable to provide their right to work they should be suspended from working immediately whilst further investigations are undertaken. it is a criminal offence to knowingly employ an illegal worker.

Employers can face a civil penalty of up to £60,000 penalty per worker for employing an illegal worker as a result of not completing right to work checks, therefore this is an important piece of admin that I advise you ensure you have in place.

Please contact me if you’d like additional guidance or templates to ensure that your right to work checks are comprehensive and compliant.