November 2025 Employment Law Update

et Expert HR SuppoEmployment Law Changes

1. Extended Time Limits for Employment Tribunal Claims

From 1 December 2025 the pre-claim conciliation window under Acas will be extended from six to twelve weeks. This increases the period during which the limitation clock is paused and, in some circumstances, may allow employees up to six months to bring a claim. Employers should review their claims management processes and retain records for longer.

2. Employment Rights Bill - Latest Position

The Employment Rights Bill remains in progress as it moves through Parliament. It has passed the House of Commons and is now back there after further debate in the House of Lords. The Lords have insisted on amendments relating to:

• Opting out of guaranteed hours offers

• The need to provide for seasonal work

• Day one rights for unfair dismissal

• Trade union political funds

• The need for a 50% turnout in strike ballots

None of these votes were close, which suggests strong support in the Lords for their version of the Bill. This will make the Government’s task of passing the Bill before Christmas significantly more challenging.

The Government is also consulting on a new Code of Practice for conducting workplace and electronic union ballots, including industrial action ballots. This forms part of the wider ‘Making Work Pay’ agenda, but it does not rely on the Employment Rights Bill. Instead, it will be introduced through a Regulation-making power under the Employment Relations Act 2004.

While the original timetable suggested implementation by April next year, this now appears unlikely. With the consultation closing in late January, the accompanying documentation hints that the new Code may instead come into effect by the end of 2026, though this remains somewhat unclear.

3. Consultations under the Bill

Consultations linked to the Bill include strengthened family-friendly rights and the creation of the Fair Work Agency. Employers should begin reviewing relevant policies now to ensure preparedness ahead of phased implementation.

Case Law Highlights

1. Workplace banter can amount to harassment

In Mr M Davies v White Doves Garages Ltd (2025), the Tribunal held that overheard sexual comments and general banter created an offensive environment, even though the claimant was not directly targeted. Employers must consider the wider workplace atmosphere and ensure policies cover by‑stander impact.

2. Errors in reasonable adjustments and unfair dismissal approach

In O’Brien v Cheshire & Wirral Partnership NHS Trust (EAT, 2025), the EAT found the Tribunal had applied the wrong legal tests and failed to properly address delays and procedural issues affecting a disabled employee. The case was sent back for reconsideration. Employers should raise concerns promptly and ensure disability‑related processes are handled carefully.

3. Fabricated claims lead to contempt of court

In Commerzbank AG v Ajao (High Court, 2025), a former employee was found in contempt for fabricating evidence to support discrimination and harassment claims, leading to a 20‑month prison sentence. While rare, the case highlights the importance of clear records and truthful statements in litigation.

4. Worker and employee status clarification

Partnership of East London Co-operatives Ltd v Maclean (2025) highlights the ongoing risk around contractor and personal service company (PSC) arrangements. Although the individual was engaged through her own company, the Tribunal found she was in fact a worker, because the reality of the relationship looked far closer to direct engagement than independent consultancy. The Employment Appeal Tribunal upheld that finding, noting that contractual wording alone is not enough to avoid worker rights if the facts point the other way.

The case also confirmed that employee status requires clear mutuality of obligation and a genuine right of substitution. If the substitution clause is theoretical or never used, it may be disregarded. Employers using contractors or PSCs should ensure contracts match actual working practices, and review control, integration, expectations and substitution rights to avoid misclassification.

Trending in HR

AI-powered recruitment tools and employee wellbeing initiatives continue to dominate HR conversations this quarter. Many organisations are reassessing their approach to hiring, flexibility and employee support as we move into 2026.

Skills-based hiring and structured recruitment

More organisations are moving away from rigid degree requirements and focusing instead on practical skills and experience. This shift has prompted many employers to review their recruitment processes to ensure they are consistent, fair and easy to manage. We are seeing increased interest in clearer role scoping, structured interviews and standardised screening criteria.

We support clients with practical, end-to-end recruitment and also implement and manage Hireful ATS, which helps teams streamline admin, improve communication and track vacancies more effectively.

AI-assisted tools in hiring

AI-supported shortlisting and screening tools continue to rise in popularity, particularly for SMEs looking to reduce manual work. The emphasis remains on responsible use, transparency and ensuring the technology supports, rather than replaces, good decision-making.

Employee wellbeing and mental health first aid

Wellbeing programmes continue to expand, with a notable rise in mental health first aid training for managers and team leads. Employers are recognising the need for early intervention, clearer routes for support and better training for those who regularly handle sensitive conversations.

Quality-aligned HR audits

There is a noticeable increase in organisations conducting structured HR audits to understand where risks, inconsistencies or gaps sit.

We carry out audits aligned with ISO 9001 principles, focusing on clarity, evidence and process reliability. This helps SMEs build better foundations, improve employee experience and prepare for growth, investment or certification.

Pay transparency preparation

With pay transparency measures expected to increase in the coming year, employers are starting to review their salary structures, benchmarking data and internal consistency. Many are preparing for greater visibility of pay ranges in recruitment and for more robust documentation around how pay decisions are made.

Need Help Implementing These Changes?

We can help you navigate these updates and ensure your business stays compliant while supporting your team effectively.