Employment Rights Act 2025: latest timeline and new consultations

The government has recently published an updated timeline for its planned implementation of the Employment Rights Act 2025. This has adjusted some of the timescales from its original ‘roadmap’ for implementation, which was published in July 2025.

There are a number of main changes to note, which are as follows:

• Electronic and workplace balloting for statutory trade union ballots (for proposed industrial action) has been put back from April 2026 to August 2026.

• Restrictions on the ability for employers to ‘fire and rehire’ staff to force through contractual changes are now delayed from October 2026 to January 2027.

• The power to make regulations specifying ‘reasonable steps’ for employers to prevent sexual harassment has been brought forward from 2027 to October 2026.

In addition, in the first week of February the government has published five new consultations relating to the changes being introduced under the ERA 2025. These are summarised below.

Flexible working

A new consultation on improving access to flexible working was published on 5 February 2026. It closes on 30 April 2026.

The ERA 2025 introduces a new test of reasonableness for employers to refuse a flexible working request, and a new requirement for employers to state their ground(s) for refusing a request. These changes will take effect in 2027. New regulations will set out what steps an employer must take to demonstrate compliance with the existing requirement – introduced in April 2024 – to consult with an employee before refusing a request for flexible working.

The aim of the latest consultation is to understand the impact of the 2024 changes to the statutory flexible working framework. In particular, the government wants to understand whether the volume of requests for flexible working has changed and the level of rejected requests.

The consultation also sets out the proposed process for consulting with employees before making a decision on whether to accept or reject their flexible working request. This includes holding a meeting with the employee without unreasonable delay and within six weeks of the request. The employer will also be required to provide written notification of the outcome of the meeting and the final decision.

These changes to the statutory flexible working procedure will not take effect until 2027, although the exact date is yet to be confirmed. The intention is to make it more likely that flexible working requests are accepted, with a clearer and more consistent process for employers to deal with such requests.

We can expect to see Acas producing a revised statutory Code of Practice on flexible working, once the reforms under the ERA 2025 are finalised. The government has also promised statutory guidance to help employers understand their obligations and meet the new ‘reasonableness’ test that will apply from a date to be determined in 2027.

Fire and rehire

A consultation on the ‘fire and rehire’ provisions of the ERA 2025 was published on 4 February 2026, considering to what extent contractual changes to expenses, benefits and shift patterns should be deemed ‘restricted variations’, and therefore fall under the new rules preventing the dismissal and re-engagement of employees.

The ERA 2025 includes a definition of a ‘restricted variation’, with the power for separate regulations to extend or amend the definition. These provisions of the ERA 2025 will take effect from January 2027.

In relation to expenses, benefits and payments in kind, the government proposes two options:

1. All expenses and benefits or payments in kind are excluded from the definition of ‘restricted variation’ (meaning dismissal and re-engagement to force through a change to these terms would not be automatically unfair). This is the government’s preferred option.

2. All expenses and benefits or payments in kind are excluded from the definition apart from certain share schemes, travel expenses and accommodation (meaning dismissal and re-engagement to achieve a change to these terms would be automatically unfair).

In relation to shift patterns, the government also proposes two options:

1. Shift changes from day to night working (or vice versa), and weekday to weekend working (or vice versa) will be ‘restricted variations’. This option would mean that only the most extreme shift changes would constitute restricted variations. This is the government’s preferred option.

2. No types of shift pattern changes are included within the scope of a ‘restricted variation’, meaning a dismissal relating to changes to the timing of a shift would not give rise to an automatic unfair dismissal claim unless it included other restricted variations (such as a change in the total number of hours or a reduction in pay).

The government’s stated aim is to balance the protection of employees from the imposition of significant detrimental changes, and the legitimate need of businesses to adapt to changing circumstances. It encourages respondents to the consultation to put forward alternative suggestions. The consultation closes on 1 April 2026.

Trade union recognition

On 4 February 2026, a consultation on a revised recognition Code of Practice and on unfair practices in electronic ballots was published.

This consultation deals with changes to the statutory trade union recognition process under the ERA 2025. The government is seeking views on its redrafted version of the current Code of Practice on Access and Unfair Practices in Recognition and Derecognition Processes, including improved access arrangements for unions and a more robust approach to unfair practices.

A second strand of the consultation considers proposals to legislate for safeguards to prevent interference in electronic and workplace ballots used for recognition and derecognition. As electronic balloting is introduced across statutory trade union processes, the government aims to ensure ballot integrity and the prevention of unfair practices.

This consultation also closes on 1 April 2026. The introduction of electronic balloting for recognition and derecognition ballots is due to take place during 2027.

Tips and gratuities

On 5 February 2026, the government published a consultation on strengthening the law on tipping. This consultation closes on 1 April 2026.

As a result of the ERA 2025, current rules on the allocation of tips to workers will be strengthened by the introduction of a requirement for employers to consult with trade union or employee representatives before first introducing a tips policy. A review of the policy must take place at least every three years, to include further consultation. These provisions are due to come into effect in October 2026.

The new consultation seeks feedback on current tipping practices and whether there have been any previous attempts by employers to consult workers on tip allocation. It asks for suggestions for improvements to the current statutory Code of Practice on tipping and the non-statutory guidance and also asks respondents to consider whether they are confident in enforcement measures relating to the allocation of tips.  

Agency work regulation

A consultation published on 6 February 2026 seeks views on modernising the Agency Work Regulatory Framework. This consultation closes on 1 May 2026.

Under the ERA 2025, umbrella companies will be brought within scope of the regulatory framework governing the temporary labour market. This is expected to take effect from 2027.

The consultation seeks views on how the current regulatory framework should be adapted to account for the activities of umbrella companies, and also what broader changes should be considered in order to modernise the existing rules.

Enforcement responsibility will move from the Employment Agency Standards Inspectorate (EAS) to the new Fair Work Agency (FWA), which is due to be established in April 2026, although it is not yet clear when the FWA will take over responsibility.