Employment law - Looking Ahead

After months of debate, the Employment Rights Bill is nearing the end of its parliamentary journey. The Bill returned to the House of Lords on 28 October 2025, but contrary to expectations, several amendments were not agreed. As a result, the Bill is being sent back to the House of Commons for further consideration, which is likely to delay Royal Assent.

Once the Bill does receive Royal Assent, it will become law, but many reforms won't take immediate effect. The majority of the Bill's headline measures (including zero-hours reforms, SSP changes, enhanced family leave protections, and fire and rehire restrictions) require secondary legislation and will be phased in over the coming years, with many not taking effect before 2026.

Employers should note, however, that once the Bill receives Royal Assent, the Strikes (Minimum Service Levels) Act 2023 will be repealed immediately. In addition, the Government has proposed a significant package of trade union reforms, which are expected to come into force two months after Royal Assent. 

While the final details are still subject to parliamentary debate, the proposed reforms include:

• simplifying ballot notices and papers;
• reducing notice of industrial action to 10 days;
• removing the ‘support threshold’ (for those in ‘important public services’);
• simplifying notices of industrial action;
• removing requirements for union supervision of picketing; and
• extending the mandate for industrial action to 12 months (with no possibility of extension).

Employers should keep their eyes peeled for our ‘Employer guide’ which will provide further information on the trade union changes and other reforms set out in the Bill.

On 23 October 2025 the government published four consultations on the Employment Rights Bill. Over the coming quarter, employers should take time to review these consultations as they offer valuable insight into the detail of the reform and what it might look like. Employers might also consider responding to the consultations by the deadlines, where appropriate, in order to help shape the reforms.

The following consultations relate to trade union reform and close on 18 December 2025:

• Duty to inform workers of right to join a union
• Trade union right of access

The following consultations relate to family friendly rights and close 15 January 2026:

• Enhanced dismissal protections for pregnant women and new mothers
• Leave for bereavement including pregnancy loss

In addition, several other consultations are expected in autumn 2025 on key proposals relating to various other trade union measures, dismissal and re-engagement (fire and re-hire) and ending the exploitative use of zero hours contracts (see our article here for further information).

A further round of consultations on trade union measures, tipping laws, collective redundancies and flexible working are then expected between winter 2025 and early 2026.

Employers should keep a watching brief for these consultations over the next quarter.

The Equality and Human Rights Commission has presented the government with a revised Code of Practice for Services, Public Functions and Associations in response to the Supreme Court's April 2025 decision in For Women Scotland v Scottish Ministers (the “Draft Code”). It has also withdrawn its interim update on the practical consequences of the Supreme Court’s ruling.

The government has confirmed that the Draft Code is under consideration and will be laid before Parliament "if the decision is taken to approve it". If approved, the Draft Code will be subject to a 40-day parliamentary period before coming into force, meaning publication could occur within the next quarter.

Ongoing litigation may affect how employers interpret and apply the Supreme Court's ruling. The Good Law Project has argued before the High Court that the decision does not apply to regulations governing workplace toilets, with a two-day hearing scheduled for November 2025. The Employment Tribunal is also due to conclude Hutchison v County Durham and Darlington NHS Foundation Trust in November 2025, in which eight nurses allege that the trust ignored the Supreme Court's ruling when implementing its changing room policies.

The EHRC has indicated that work on updating its employer guidance will begin after the Draft Code is finalised, though no timeline has been confirmed.

Over the next quarter, employers should monitor the publication of the Draft Code and the outcome of litigation closely.

Those reviewing or implementing policies in this area should seek specific legal advice.

The UK Government's 2025 Immigration White Paper proposes to double the qualifying period for indefinite leave to remain from 5 to 10 years for Skilled Worker visa holders, though this may be reduced for those meeting earnings or integration requirements. The Home Affairs Committee is calling for evidence by 2 December 2025.

The Border Security, Asylum and Immigration Bill (currently at House of Lords Committee stage) will significantly expand right to work obligations, requiring checks for all individuals working for a business, including workers, subcontractors and those engaged through online matching services, with civil penalties of up to £60,000 for non-compliance. The Bill is yet to receive Royal Assent however, organisations should keep a close eye on this. We await Home Office guidance to accompany these legal changes. If implemented, the extensive changes will require businesses to prepare and adapt their processes.  

The Government has also announced plans for a mandatory digital ID scheme to streamline immigration status checks, with a consultation expected later this year.

Enforcement action has increased and Government statistics show that sponsor licence revocations more than doubled to 1,948 between July 2024 and June 2025, whilst enforcement visits increased by 40%. It is more important than ever that sponsors are aware of, and complying with, their sponsor duties including licence maintenance, migrant reporting and record-keeping. Similarly sponsor applicants should be prepared for licence applications being closely scrutinised.

The October 2025 Statement of Changes introduces higher English language requirements (B1 to B2) for Skilled Worker routes from 8 January 2026, reduces Graduate visa duration to 18 months from 1 January 2027, and increases the Immigration Skills Charge by 32% from 16 December 2025.

Organisations should monitor the Indefinite Leave to Remain consultation and consider responding; review right to work processes ahead of the Bill's enactment, particularly for non-employee workers; ensure full compliance with sponsorship duties given heightened enforcement; and budget for increased Immigration Skills Charge costs from December 2025.

For more information on the changes made and the impacts it could have on you and your business, please see our summary here or get in touch with a member of the TLT Immigration team.