Employment Law: The Issues Employers Are Asking About Most

A few questions come up again and again in conversations with employers across London and the South East at the moment.

"Is our redundancy process actually compliant?" "What happens if someone raises a complaint about harassment — are we exposed?" "Our employee handbook hasn't been touched in years — does that matter?"

These aren't new worries in themselves. But they've taken on new weight this year, and there's a single reason why: the Employment Rights Act 2025. This is one of the most significant pieces of employment legislation in years, and the changes already in effect are only part of what it introduces — with further provisions still to be implemented. The areas this article focuses on — the changes that came into effect in April 2026 — are:

• increases to National Minimum Wage, National Living Wage, and statutory sick and family-related pay
• the doubling of protective awards for collective consultation failures, to a maximum of 180 days' pay per affected employee
• the shift to organisation-wide assessment of proposed redundancies
• the expansion of whistleblowing protection to expressly cover reports of sexual harassment as protected disclosures

Redundancy and restructuring

Getting a redundancy process wrong now carries a much higher price tag. Under the Act, the maximum protective award for failures in collective consultation has doubled to 180 days' pay per affected employee — alongside wider increases to tribunal award limits more generally. The Act has also changed how redundancies are assessed — moving away from a site-by-site view towards looking at the organisation as a whole. For employers with multiple locations or group structures, that's a meaningful change to how consultation obligations are triggered.

Whistleblowing and workplace complaints

The Act has expanded whistleblowing protection so that, provided the statutory tests are met, a report of sexual harassment can amount to a protected disclosure in its own right. In practice, that means a complaint which might once have been handled informally may now sit within whistleblowing protection — changing how it needs to be managed, and increasing the risk if it isn't handled well.

Pay and statutory entitlements

Increases to National Minimum Wage, National Living Wage, and statutory sick and family-related pay are more familiar ground — and sit alongside the wider changes the Act introduces. The ripple effects on pay structures, working arrangements, and budgeting are still playing out for many employers.

Why this matters now

These aren't three unrelated issues — they're three strands of the same piece of legislation, and the Act points in a clear direction overall: greater protection for individuals, higher financial exposure for employers who get things wrong, and closer scrutiny of whether policies and processes work in practice — not just on paper.

For many employers, that raises a practical question: do current policies, contracts and processes actually reflect what the Act now requires?

These changes — which came into effect in April 2026 — are, however, only the first phase of what the Employment Rights Act 2025 introduces. More significant reforms are due to follow:

October 2026

• Sexual harassment protections are to increase with the reintroduction of protection from third-party harassment — employers can be held liable for harassment by customers, clients, contractors or visitors — and also the introduction of the requirement that employers must take "all reasonable steps" to prevent sexual harassment to avoid a 25% compensation uplift.
• Trade union reforms are coming into effect as trade unions gain the right of access to the employer's business to recruit and represent members. Employees will also have to be told of their right to join a union. Employers may need to get used to dealing with union representatives for the first time.
• Tribunal time limits for commencing a claim are to double from three to six months.

January 2027

• The period of employment required to bring a claim of unfair dismissal will drop from 2 years to just 6 months.
• The abolition of the compensation cap for unfair dismissal will take effect, putting it on a par with discrimination cases.
• Fire and rehire will be banned as it will become automatically unfair to dismiss an employee for refusing to accept changes to core contractual terms, then offer re-engagement on worse terms. It will also be against the law to dismiss an employee and replace them with someone prepared to accept a worse contract.

For employers, the practical question is not just whether current policies reflect the April changes — but whether they are prepared for what comes next. The most effective approach is to carry out a single, comprehensive review now — addressing the April changes and preparing for October 2026 and January 2027 together — rather than returning to policies and procedures incrementally as each phase arrives. This allows more time to prepare for the more significant changes ahead and is typically less time-consuming and less costly than doing it in stages.

Next reads in the series

Employment Rights Act 2025: Where Employer Policies Commonly Fall Short

Employment Policy Reviews: Why Timing Matters Under the Employment Rights Act 2025

FAQs

What is the Employment Rights Act 2025?

A significant piece of UK employment legislation introducing wide-ranging reforms, including changes to redundancy consultation, whistleblowing protection, and statutory pay. Some provisions are already in effect, with further changes still to come.

Why is redundancy under more scrutiny under the Employment Rights Act 2025?

The maximum protective award for collective consultation failures has doubled to 180 days' pay per affected employee, and redundancies are now assessed on an organisation-wide basis rather than site by site — raising the stakes for employers, particularly those with multiple locations.

What's changed around whistleblowing and harassment complaints under the Employment Rights Act 2025?

Provided the statutory tests are met, a report of sexual harassment can now amount to a protected disclosure in its own right — broadening the circumstances in which whistleblowing claims can arise and changing how complaints need to be handled.

Do employment policies and contracts need updating under the Employment Rights Act 2025?

Almost certainly. Many existing policies and procedures may no longer reflect current and impending legal requirements — particularly around consultation, complaints handling and pay.

What further changes are due under the Employment Rights Act 2025?

The April 2026 changes are the first phase of a longer programme of reform. Further provisions are coming into effect in October 2026 and January 2027, including those set out above.

About the Author

Michael Pope is Head of Employment and Corporate Commercial Specialist at Grant Saw Solicitors, where he leads the development of the firm's Business Services practice. With over four decades' experience, he advises businesses, directors and contractors on employment law, risk management, and company and commercial matters.

Michael began his career at Woolsey Morris & Kennedy Solicitors in 1983, becoming a partner in 1987, before founding Lawbridge Solicitors in 2008. He holds a Masters in Employment Law and Relations with Distinction from the University of Leicester and is regulated by the Solicitors Regulation Authority (SRA No. 128429).

Employment law advice

Our Employment team advises businesses, directors and contractors across London on employment law, risk management and the practical implications of legislative change. To discuss a review of your organisation's current position, call 020 8858 6971 or email michael.pope@grantsaw.co.uk or yasmin.awan@grantsaw.co.uk.

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Disclaimer

This article is for general information only and is not legal advice. Laws and guidance change and outcomes depend on facts. If you need advice on your situation, please contact us. Grant Saw Solicitors LLP is authorised and regulated by the Solicitors Regulation Authority.

Last updated: 17 June 2026