The Employment Rights Act 2025 finally received Royal Assent and became law on 18 December 2025. It represents what the government has described as “the biggest upgrade of workers’ rights in a generation” and includes a raft of changes to the current industrial relations framework.
This article, published in International Employment Lawyer on 20 January 2026, covers a number of the key changes, some of which will apply from as early as February 2026.
The Employment Rights Bill was approved and finalised on 18 December 2025, after many rounds of parliamentary “ping pong”, becoming the Employment Rights Act (ERA) 2025. Its final form is substantively very similar to previous versions, with one important exception: the retention of a qualifying period for unfair dismissal rights (albeit reduced from two years to six months) and the removal of any cap on unfair dismissal compensation.
Although we now have a finalised ERA 2025, many key areas of detail are subject to consultations and further regulations. This article summarises the Act’s key provisions, the areas of outstanding detail, anticipated timelines (as set out in the government’s updated timeline on 4 February 2026), and what organisations could or should be doing now to prepare.
On 16 December 2025, the House of Lords resolved the final point of dispute in the Employment Rights Bill – whether the cap on unfair dismissal should be removed – paving the way for Royal Assent before Christmas.
The Bill introduces sweeping employment law reforms, including new provisions on strikes and trade unions, enhanced protective awards for collective redundancies, and restrictions on fire-and-rehire practices. It also reduces the qualifying period for unfair dismissal claims to six months from January 2027, although the timing for removing the compensation cap remains uncertain.
Implementation will be phased through 2026 and 2027, supported by over 20 consultations and secondary legislation following Royal Assent.
Major recent US immigration changes are reshaping employer compliance and visa processes—from social media vetting to costly new programs and reduced work permit validity. Find out what these updates mean for your workforce and future planning. For example, the Gold Card Program launched, offering a path to permanent residence but with unclear timelines and requirements. EAD validity periods have been shortened, and automatic extensions removed for most categories, increasing compliance risks. Proposed ESTA changes will require extensive social media history, making applications more complex.
In March 2025, the Home Office issued a revised version of its statutory guidance “Transparency in Supply Chains” following the House of Lords Modern Slavery Act 2015 Committee’s report. This marks the first full revision of the guidance in nearly a decade. In an article for Compliance & Risk, Jon Tuck and David Yadid examine the current legal framework under the Act, unpack the key changes introduced by the new guidance, and consider their implications for businesses.
The Committee on Employment and Social Affairs of the European Parliament recently published a draft report on digitalisation, AI and algorithmic management in the workplace. It makes a number of recommendations including for a directive specifically regulating ‘algorithmic management’ in the workplace with protections extending to self-employed individuals in addition to workers. There are a number of steps in the EU legislative process before these proposals could become legally binding. Given their significance, including the broad definition of ‘algorithmic management’, impacted organisations should nevertheless monitor if and how they develop.
The European Commission has issued its first fine in a no-poach case in the labor market, and its first sanction of the anti-competitive use of a minority share in a competing business. With the fine of EUR 329 million, the Commission joins the ranks of a number of high-profile antitrust enforcers worldwide that have targeted HR-related infringements. The Commission’s first intervention is also likely to encourage other EU regulators to follow suit and is an important reminder of the need to carefully manage antitrust risk (specifically information flows) where a company holds a minority shareholding in a competitor.
On 6 December 2024, the Private Investigations Act (PIA) was published in the Belgian Official Gazette. The PIA imposes certain new obligations with respect to private investigation activities, whether carried out in-house or by external investigators. Given the broad scope of application of the PIA, it is likely to materially impact many employers in Belgium.
On 4 March 2025, the Luxembourg parliament adopted draft bill No. 8225, transposing the employment law provisions of the Mobility Directive (Directive (EU) 2019/2121) into Luxembourg law. This legislation introduces new rules on employee information, consultation and participation in cross-border conversions, mergers and divisions.
A legislative proposal has been introduced to implement the ‘Pay Transparency Directive’ in the Netherlands. On 26 March 2025, the internet consultation for this proposal was launched and will conclude on 7 May 2025. Following this, a decision will be made on whether, and in what form, the bill will be submitted to the House of Representatives. The intended implementation date for the bill is 7 June 2026.