Alongside the first changes ushered in by the Employment Rights Act 2025, the government recently launched consultations on three key areas of the legislation to shape secondary legislation and codes of practice.
The government is consulting on three areas of the Employment Rights Act 2025 (ERA) ahead of the implementation of sweeping changes to employment law.
Following the receipt of parliamentary approval in late 2025, the Act has two main implementation windows this year – in April and October – followed by a handful of other changes in 2027.
The first of the changes has now taken effect, with the repeal of the Trade Union Act 2016 restrictions on 18 February 2026 bringing in enhanced worker protections which, for employers, could mean faster, less predictable disputes and a narrower margin for intervention.
Alongside that, the government has now launched public consultations on flexible working rights, the revised statutory code on trade union recognition and electronic balloting, and so-called ‘fire and rehire’ practices.
Flexible working
The consultation on flexible working rights legislation will explore:
- The procedure employers must follow before refusing a request, including a requirement to meet with the employee within six weeks and provide written outcomes.
- How changes will support the ERA’s new statutory 'test of reasonableness' for rejecting a request.
- Preparatory steps for ACAS to update the statutory Code of Practice on flexible working to reflect the new reasonableness test.
Trade union recognition and electronic balloting
To align existing guidance with the forthcoming ERA provisions, the government opened a consultation on revising the Code of Practice on Trade Union Recognition and Derecognition. Another part of this consultation looks at unfair practices in respect of future electronic balloting for strike action. The draft codes address:
- Updated rules governing enhanced trade union access to workplaces both physically and digitally.
- What constitutes 'unfair practices' during recognition and derecognition campaigns.
- Measures to support the ERA reforms on statutory trade union ballots, including new balloting processes.
'Fire and rehire'
One of the more controversial areas of the Employment Rights Act is the restriction of so-called ‘fire and rehire’ practices. The consultation seeks to shape the final regulatory design and enforcement of these provisions. It focuses on:
- Defining permissible employer conduct when seeking contractual changes.
- How far restrictions should be permitted in two potentially difficult areas: (i) shift patterns and (ii) expenses and benefits.
- Ensuring reforms remain ‘fair and workable’ for both businesses and workers.
The consultations play an important role in tailoring the Employment Rights Act which will bring greater worker protection, increased procedural duties for employers, and a modernised industrial relations framework. Employers should stay closely engaged with consultation outcomes and prepare for staged compliance obligations extending into 2027.
Key takeaways
- Seek advice to prepare for new employment legislation.
- Be aware of care required if making changes to terms and conditions from 2027.
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