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Monthly Bulletin Archive
8th July 2026
The Employment Rights Act 2025 continues to reshape UK employment, and some of the most significant changes are approaching this October. Even businesses that have never previously engaged with a trade union should be preparing now.
One of the biggest upcoming changes is the proposed statutory right for trade unions to request workplace access, both physically and digitally, to communicate with employees about membership and representation. Importantly, this applies even where a union is not formally recognised.
Current draft guidance suggests there will be a presumption in favour of granting access unless it would be unreasonable to do so. Blanket refusals could expose employers to legal risk, including intervention from the Central Arbitration Committee (CAC).
For many SMEs, this represents a major shift. Previously, unions had limited opportunities to engage directly with employees in non-unionised workplaces.
A second reform, expected from October 2026, will require employers to actively inform staff of their right to join a trade union, likely through onboarding documentation or written statements provided at the start of employment.
Taken together, these reforms are clearly designed to reduce barriers to union engagement and increase visibility in workplaces that may historically have had little union presence.
What employers should do now
Trade unions are far more likely to gain traction where employees feel disconnected or unheard. Proactive employee relations are becoming increasingly important.
A recent Employment Tribunal ruling has reinforced an important point for employers managing restructures or redundancy situations: consultation obligations can arise before plans are fully finalised.
Collective redundancy consultation rules apply when an employer proposes to dismiss 20 or more employees within a 90-day period. However, the key word is ‘proposes’.
In Ellard v Alliance Transport Technologies Ltd, a business entered administration and initially dismissed 15 employees while attempting to secure a buyer. Further redundancies followed shortly afterwards once a sale became unrealistic.
The employer argued that collective consultation obligations had not been triggered during the earlier stage because fewer than 20 redundancies were planned at that point. The EAT disagreed.
The tribunal confirmed that a proposal can exist even where:
By the time the first redundancies occurred, business closure had effectively become the likely outcome. That was enough to trigger consultation duties.
Because the employer failed to collectively consult, affected employees were awarded 90 days’ pay. With protective awards now potentially reaching 180 days’ pay per employee, the financial risks of delay are substantial.
Key HR takeaways
A recent appeal case, KJ v British Council, has highlighted the complexities surrounding compensation in discrimination claims. The employee experienced sexual harassment and later raised concerns about how her grievance was handled. She resigned and successfully brought claims against her employer.
Initially, the tribunal reduced compensation by 35%, reasoning that she may have left the business anyway because she had already been searching for alternative roles However, the Employment Appeal Tribunal overturned this approach.
The key legal question, based on previous case law in Chagger v Abbey National, was whether the employee would have behaved the same way had the discrimination never occurred at all.
If the discrimination itself caused the employee to start looking elsewhere, then those later actions remain part of the chain of causation and should not reduce compensation.
For HR teams, the case is an important reminder that:
The UK Government has now introduced the Fair Work Agency, a new enforcement body designed to consolidate existing regulators and strengthen workers’ rights enforcement. Although the Agency is still developing operationally, its direction is clear: employers should expect more proactive investigations and greater scrutiny.
Historically, employment enforcement has been fragmented, with different organisations overseeing areas such as:
The Fair Work Agency is expected to centralise many of these functions, making it easier for potential breaches to be identified and pursued.
Importantly, this also signals a shift away from relying solely on employees bringing tribunal claims themselves. Instead, there is likely to be more state-led enforcement activity, particularly within higher-risk sectors.
What should employers prioritise?
Employers taking a ‘deal with it later’ approach may face increasing risk as enforcement powers expand.
As union activity becomes more prominent, HR professionals in non-unionised environments should ensure they understand the foundations of trade union law.
Trade union recognition gives a union formal rights within a workplace. While many recognition agreements are voluntary, unions can also pursue statutory recognition through the CAC.
Currently, unions generally require 10% membership within a proposed bargaining unit to apply. Under the Employment Rights Act 2025, this threshold could potentially reduce even further.
Once recognised, unions gain rights to negotiate on issues such as pay, working hours, and holiday entitlement. These negotiations produce collective agreements, which may become legally binding when incorporated into employment contracts.
Union representatives have significant legal protections, including paid time off for union duties and protection against dismissal linked to union activity. This means HR decisions involving representatives require particular care.
Industrial action remains heavily regulated, requiring lawful ballots and formal notice procedures. However, recent reforms have strengthened employee protections during lawful action.
The key message for employers is preparation. Businesses should monitor employee relations trends, understand union activity within their sector, and develop internal strategies before issues escalate.
Many employers view the employment contract purely as the written document signed by both parties. In reality, contracts also contain implied terms – unwritten obligations that can still be legally binding. There are three main categories employers should understand.
Some obligations are considered so obvious they do not need to be written down. For example, employees in driving roles are generally expected to hold a valid licence.
These apply automatically to every employment relationship, including:
These rights cannot simply be excluded contractually.
This is often where employers encounter difficulties. Repeated workplace behaviours, such as regular bonuses, consistent early finishes, informal additional leave, and flexible arrangements can gradually become contractual rights if employees reasonably come to expect them.
Managers should, therefore, understand that everyday workplace decisions can unintentionally create legal obligations over time.
The recent case of Ageli v Sabtina Ltd demonstrates the financial risks associated with poor holiday management practices. The employee, a property manager, was awarded £392,000 after accruing 827 days of untaken annual leave over a 25-year period.
The tribunal found that operational pressures had repeatedly prevented the employee from taking leave, and no compensation was paid when employment ended. The case reinforces that annual leave is not simply a passive entitlement. Employers must actively make sure that employees are both able and encouraged to take holiday.
This becomes particularly important under the Employment Rights Act 2025, which now requires employers to retain holiday records for six years. Businesses should ensure:
Without clear evidence, employers may struggle to prove workers had a genuine opportunity to take leave.
Permanent Health Insurance (PHI), often referred to as group income protection, can create significant legal complications if poorly managed. PHI provides employees with a percentage of salary during long-term illness, usually through an insurer. However, entitlement often depends on the employee remaining employed.
That creates tension when employers attempt to manage long-term absence through capability dismissal procedures. In McMahon v AXA ICAS Ltd, the court confirmed that PHI payments may qualify as ‘wages’, meaning employees could potentially pursue unlawful deductions claims if entitlement is lost.
The ruling also reinforced that dismissing employees in a way that removes PHI entitlement may create breach of contract risks. Practical considerations for employers include:
Handled properly, PHI is a valuable benefit. Handled poorly, it can become a significant long-term liability.
Finally, a recent tribunal case serves as a reminder that workplace conduct is judged not only by intention, but by impact. In Esteves v West London NHS Trust, a healthcare assistant successfully brought a harassment claim after repeatedly being referred to as “auntie” by a colleague, despite asking for it to stop.
Although the tribunal accepted the comment was intended respectfully within the colleague’s cultural background, the continued use of the term after objections were raised created an offensive environment. The compensation award itself was relatively modest at £1,425, but the wider lesson is significant.
Employers should ensure managers and employees understand that:
Inclusive workplaces rely not only on good intentions, but on listening and adapting appropriately.
Here to Help, Not Replace Experts:
The information contained in this blog presented for general informational purposes only. While we strive to provide accurate and up-to-date content, legal and HR practices can evolve rapidly. This blog is not a substitute for professional advice.
For specific questions or concerns regarding your unique situation, we highly recommend taking professional advice and booking a consultation with a Sapphire HR Consultant. Our consultants are experts in the field and can provide tailored guidance to address your specific needs.
We aim to work truly in partnership with our client organisations and to develop a high-quality, competent HR Service for all clients, the HR Provider that they can rely on and who gets to understand the culture and vision of your business.
