July Employment Law Updates

7/25/20254 min read

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Employment Law Updates & Business Reminders

As we wrap up July, here’s your monthly update on what’s happening across the world of employment law, people management, and HR updates.

Employment Rights Bill - Where Are We Now?

The Employment Rights Bill is nearing the final stages. It will return to the House of Commons for consideration after the Third Reading (scheduled 3rd September), following the House of Lords' amendments (fairly short at only 25 pages).

At this point the Government can choose to accept or reject the changes. The Bill will then go back to the House of Lords and they can either accept any rejections that the Government have made or insist the amendments are kept.

It is therefore looking likely that the Bill will receive Royal Assent in late September/early October.

Key amendments debated include:

Confidentiality clauses void where they seek to silence disclosures or allegations relating to workplace harassment or discrimination (government‑backed and likely to form part of the final legislation).
Bereavement leave extended to cover pregnancy loss occurring before 24 weeks, available from day one (though not automatically paid).
Unfair dismissal qualifying period: a Lords amendment (backed by Conservative peers, not the government) would reduce the threshold from two years to six months rather than day‑one protection; it's expected to return to Commons for final consideration.
Zero‑hours contract clause weakened: Lords passed an amendment replacing a guaranteed‑hours entitlement with only a right to request guaranteed hours. This may yet be overturned in the Commons.
A ban on ‘fire and rehire’ except in exceptional circumstances, plus the repeal of parts of the Strikes (Minimum Service Levels) Act 2023 and many provisions of the Trade Union Act 2016 once the Bill becomes law.
Creation of a new Fair Work Agency with enforcement powers, including fining and naming employers who breach rules such as non‑payment of holiday pay.

The Implementation Roadmap

The government has issued a phased implementation roadmap, largely effective from April 2026 and into 2027, with some immediate changes following Royal Assent in autumn 2025. Depending on what happens with the amendments, this is the Government's plan:

After Royal Assent (anticipated autumn 2025)

Full repeal of the Strikes (Minimum Service Levels) Act 2023 and most provisions of the Trade Union Act 2016.
Legal protection introduced for workers participating in lawful industrial action, preventing unfair dismissals during a 12‑week window following action

April 2026

Major rights come into effect, including:

Day‑one entitlements for:
- Statutory Sick Pay, with no lower earnings threshold or waiting period, extending eligibility to approx. 1.3 million low-paid workers.
- Unpaid parental leave and paternity leave.
Expanded whistleblowing protections, allowing employees to raise concerns from day one without fear of retaliation.
Launch of the Fair Work Agency - a new enforcement body with powers to fine non‑compliant employers and enforce holiday pay and other rights.
Doubling of the maximum protective award period under collective redundancy rules.
A suite of trade union reforms, including simplified recognition procedures and broader access to electronic and workplace balloting.

October 2026

Further reforms set to take effect:

Stronger restrictions on “fire and rehire” practices.
Establishment of a Fair Pay Agreement body for the adult social care sector in England.
Requirements for employers to consult workers on tipping arrangements and to take “all reasonable steps” to prevent sexual harassment, including harassment by third parties in public-facing roles.
Additional protections for trade union representatives and enhanced safeguards for individuals taking industrial action.

Throughout 2027

Final phase of reforms includes:

Statutory gender pay gap and menopause action plans (following voluntary rollout from April 2026).
Enhanced dismissal protections for pregnant employees and new mothers.
A statutory day-one right not to be unfairly dismissed, removing the two-year qualifying period.
Ban on exploitative zero-hours contract practices, with formal rights to request guaranteed hours.
Further improvements to flexible working arrangements.
Statutory bereavement leave entitlement with job protection

Top Tips for Micro-Businesses

Use the roadmap timeline to phase policy updates, don't try to implement everything at once.
Prioritise training line managers on new rights and procedures.
Consider early policies ahead of statutory rollout, especially around sick pay and parental leave, to support trust and retention.
Stay alert for consultation opportunities this summer and autumn that may shape final regulations.

Hot Weather at Work

With the heatwave reported to be returning in August, it's a good time for employers to think about how to support employees working in hot conditions - particularly relevant for businesses without air con or those in naturally warm environments like kitchens and factories.

While there's no specific maximum workplace temperature under UK law, employers do have a legal duty to ensure working conditions are reasonable and safe.

A few ways you can help your team:

Provide fans or improve ventilation
Relax dress codes where appropriate
Encourage regular breaks and access to drinking water
Adjust working hours if possible, especially in warehouses or environments with physical work
Watch out for signs of heat exhaustion, particularly in hot environments
Consider pregnant employees and those with health conditions

If your team is struggling with heat, they're not going to be productive anyway.

If you're unsure what reasonable adjustments might look like for your business, we can help.

Special Offer – Breathe HR for Micro Businesses

Great news for small businesses looking to get their HR systems sorted! Breathe HR is currently offering 50% off annual plans for microbusinesses helping you manage leave, documents, onboarding, and more with ease. This could be perfect timing if you've been putting off implementing proper HR software.

We can assist with:

Getting set up
Data migration
Employee communications