Employment Rights Act: job and legal experts have their say

Next year will see the government hone measures contained in the Employment Rights Act as it seeks to balance workers' and unions' new rights with business priorities. It must avoid a meltdown in the employment tribunal system and any risk of mass redundancies ahead of unlimited unfair dismissal compensation and six-month qualifying periods being introduced from 1 January 2027. Here, employment lawyers and specialists tell Personnel Today about their own concerns about the new Act.

Reshaping the union dynamic

Diane Gilhooley, global head of employment, labour and pensions at Eversheds Sutherland

"The Act marks a pivotal shift in UK industrial relations with reforms that will reshape the employer-union dynamic. From new rights to workplace access for unions, a simplified statutory recognition process and deregulation of industrial action, employers should anticipate the potential for a more assertive union landscape and increased scrutiny of workplace practices.

"While many of the Act's reforms do not take effect until 2026 and 2027, employers will need to act now to prepare and prioritise actions based on the government's implementation timetable but also individual business need. For example, employers in hospitality, retail or other public-facing services will need to act early on third-party harassment reforms due in October 2026. Similarly, while new rights for zero and low hours workers are not scheduled to take effect until 2027, businesses that rely heavily on these types of workers will require significant advance work to ready themselves.

Leading employers have already implemented these measures

Chartered Management Institute CEO Ann Francke

"The focus now turns to ensuring successful implementation - this requires skilled managers who can see beyond the letter of the law and navigate the changes in a collaborative and respectful way. Those that get it right will reap the benefits of improved employee retention and increased productivity. In reality, much of what is in here is already being done by leading employers."

Ministers must address enforcement questions

Mark Evans, president of the Law Society of England and Wales

"Employment tribunals are already under extreme strain with open cases having increased by 33%. The Act introduces new rights that, if not matched with adequate resourcing, will lead to more new cases resulting in further delays. We urge the UK government to invest in the employment tribunal system to manage the high and growing backlogs, so new rights can be meaningfully enforced.

"The government claims that the Fair Work Agency will offset the expected rise in cases. However, more clarity, a firm commitment and funding are needed to ensure there is sufficient capacity and resources to successfully manage its workload.

"For the new law to serve employees and employers alike, the government must address how rights are enforced or it will fail to create a balanced and functional system."

Whistleblowing, sick pay and parental leave policies must be upgraded

Stephen Simpson, principal HR strategy and practice editor, Brightmine

"Fewer than one in five organisations have begun reviewing their sick-pay policies - despite almost a quarter needing to upgrade provision and nearly half expecting absence-related costs to rise. Over 80% have yet to align parental-leave policies with forthcoming day-one rights, and two-fifths still need to update whistleblowing frameworks. HR teams anticipate higher short-term absences, increased case management and greater pressure on line managers.

"Employers now need to move quickly. Those that start planning early - updating policies, budgeting for new costs, strengthening absence management and preparing managers - will be far better placed to navigate a more regulated, more accountable employment landscape."

New codes of practice and secondary legislation will be vital

Ben Harrison, director of the Work Foundation at Lancaster University

"Work Foundation analysis has shown that women, disabled people, ethnic minorities and young people all stand to gain most from changes to unfair dismissal, zero-hour contracts and day one rights.

"But in many ways, the hard work starts now as important decisions on new codes of practice and secondary legislation remain. It's vital that as government works with employers and unions to shape these, the reforms deliver on the spirit of the Bill as originally intended. Only then will as many workers as possible benefit from two-sided flexibility, extra protections and security at work in the coming years."

Compensation cap removal raises the stakes

Lorna Ferrie: legal and compliance director at Mauve Group (global HR and employment solutions)

"One of the biggest surprises for me was the removal of the cap on dismissal compensation. For smaller companies, this could be a serious financial risk where even one large payout could destabilise their business. This really raises the stakes for getting HR processes right and will likely push small businesses to invest more in legal advice or to settle disputes early to avoid unpredictable costs. I would expect it to also encourage smaller companies to reconsider their insurance requirements to help cover any unexpected claims."

Occupational health can play a key role

Nick Pahl, chief executive of the Society of Occupational Medicine

"The introduction of mandatory Menopause Action Plans for large employers requires a strategic occupational health approach to ensure policies and management training effectively support employees. Occupational health experts can also help determine whether an employer has taken reasonable steps to prevent sexual harassment.

"To support the new Fair Work Agency in ensuring these reforms are effectively implemented, occupational health experts and services are needed. When in place, occupational health helps reduce absenteeism and increase workplace morale, retention, productivity, and profitability."

Once in a generation opportunity

Niall Mackenzie, Acas chief executive

"This is a once-in-a-generation change to employment law in Britain and an opportunity for employers and workers to work together to bring all workplace relations up to the standard of current best practice, and help businesses thrive and improve working lives.

"Acas will be updating its training and advice as the new laws are implemented. We stand ready to help employers, workers and their trade unions work together to make the most of the opportunity presented by these reforms to build better, healthier and more productive workplaces."

Bring back industrial juries

James Townsend, employment partner at Payne Hicks Beach

"The government would have been better focused on modernising dispute resolution practices to cut current delays in cases being heard and re-introducing industrial juries, which were previously abolished in favour of judges sitting alone in the majority of cases. Making a sensible reversal of earlier government policy on industrial juries would have brought back workplace reality and common sense to the employment tribunal system."

The risks of union workplace access

Anthony Wilcox, employment partner at TWM

"The combination of mandatory communication, regular workplace access and the threat of £75,000 fines means these reforms could significantly increase union visibility and influence across UK workplaces. The legislation includes a new legal duty on employers to provide information to workers telling them of their right to join a trade union. It is proposed that workers will receive explanations on what trade unions do, a summary of trade union membership rights, details of any trade union recognised by the employer and a signpost to a list of trade unions on the government website. This information would have to be issued to every new starter and then provided again to existing staff, most likely annually.

"Many businesses will be very surprised at these proposals. Employers will effectively be expected to raise the profile of trade unions with their workers and facilitate regular on-site access for unions - even where no recognition agreement exists.

"It seems that these proposals are designed to shift the balance of workplace relations - employers will be concerned that this shift may be to their cost and could risk creating more difficult workplace relations."