Employment Rights Act 2025: updated timeline and multiple consultations launched
Over the past week, the government has published an updated timeline for implementing the numerous provisions of the Employment Rights Act 2025 ('the Act') and launched a series of new consultations. Here we take a closer look and explain what these updates mean for your organisation.
What has changed?
The government initially published its roadmap outlining when the various reforms were expected to take effect, which you can read more about here. It has now released an updated timeline that broadly aligns with those original plans, although the government has made a few notable changes.
Electronic balloting will now take effect in August 2026
Currently, statutory trade union ballots are conducted exclusively by post. However, the government is expanding the available methods by introducing electronic and workplace balloting, supported by a new Code of Practice on electronic and workplace balloting for statutory union ballots setting out how these processes will operate in practice. A consultation on the draft code ran until 28 January 2026 which you can read more about here.
The government originally stated that electronic balloting would take effect in April 2026, but the updated timeline now states August 2026.
Fire and rehire will now take effect in January 2027
Dismissal and re-engagement - often referred to as ‘fire and rehire’ - occurs when an employer seeks to change an employee's terms and conditions by dismissing them and offering re-engagement on the new terms. The Act will significantly restrict this practice by making it automatically unfair to dismiss an employee in order to impose a ‘restricted variation’ of their contract without their agreement. A ‘restricted variation’ includes key terms such as pay, working hours, and holiday for example. An exception will apply where the employer is facing genuine financial difficulty.
The government had originally planned for this change to take effect in October 2026, but implementation is delayed until January 2027.
Five new consultations
The government has also published five new consultations:
1. The Make Work Pay: fire and rehire - changes to expenses, benefits, and shift patterns consultation, launched on 4 February 2026, seeks views on two types of restricted variations: employment expenses and benefits, and shift patterns. The government is inviting feedback on which expenses, benefits and shift changes fall within these protections. The consultation closes at 11:59pm on 1 April 2026.
2. Also launched on 4 February 2026 was the Make Work Pay: recognition code of practice and e-balloting unfair practices consultation. This consultation, which also closes at 11:59pm on 1 April 2026, is divided into two parts:
- Code of practice on access and unfair practices during recognition and derecognition process: The Act makes several changes to the statutory trade union recognition process. As a result, the government must update the existing code of practice. The consultation therefore seeks views on the proposed revised code.
- Unfair practices in electronic balloting: The Act will introduce electronic and workplace balloting for recognition and derecognition ballots, expected to take effect in 2027. Before implementation, the government aims to ensure that appropriate safeguards are in place to prevent interference in these ballots. This part of the consultation therefore invites views on the government's proposals for achieving this.
3. The government launched two more consultations on 5 February 2026. The first, Make Work Pay: improving access to flexible working, closes at 11:59pm on 30 April 2026. The Act introduces a new test of reasonableness, meaning that an employer will only be able to rely on one of the statutory grounds for refusing a flexible working request where it is reasonable to do so, and it must explain this to the employee. The consultation seeks views on:
- A proposed new “light touch” process for employers consulting with employees where a request cannot be immediately agreed
- What training, resources and support can help businesses navigate flexible working requests; and
- Other ways to improve access to flexible working.
4. The second consultation is Make Work Pay: strengthening the law on tipping, which closes at 11:59pm on 1 April 2026. The Act introduces a requirement on employers to consult on their tips policy when developing or reviewing it at least once every three years. The consultation invites views on both the existing law and these new requirements.
5. On 6 February 2026, the government published the consultation, Make Work Pay: modernising the Agency Work Regulatory Framework. The Act will introduce formal regulation of umbrella companies. As the consultation explains, umbrella companies are “payment intermediaries that employ workers - often agency workers - on behalf of recruitment agencies and end hires. Umbrella companies process payroll and manage employment-related obligations, but the worker typically performs their duties for a third-party client rather than the umbrella company itself.” The consultation therefore seeks view on how to update the regulatory framework to account for the activities of umbrella companies, and what broader changes the government should consider to modernise the rules. This consultation closes at 11:59pm on 1 May 2026.
What does this mean for your organisation?
Although many of the Act's reforms will not take effect for some time, you should begin planning now to ensure you are fully prepared. Keep a close eye of the implementation dates and make sure you have the necessary policies, processes and training in place ahead of time.
We would also strongly encourage you to engage with the consultations, particularly where the proposals will impact your operations or workforce. Your input can help shape the final framework.
Free training
You can learn about these changes, along with the wider package of employment law reforms introduced by the Employment Rights Act 2025, and what your business can do to prepare, in our webinar ‘2026 Annual employment update: everything you need to know to prepare your business for the year ahead’ on Thursday 26 February 2026 at 10am. Please register here.
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