The Employment Rights Bill passed the House of Lords on 16 December 2025, and received Royal Assent on 18 December 2025, as the Employment Rights Act 2025.
Much of the detail is still to be added, and important elements will continue to be inserted by regulations in the next 12 or so months.
Some of the changes to employment law made by the Act will be coming into force from April 2026 on through to early 2027.
For Employers it is a time to review the impact on employment terms and conditions, employment contracts, practices, policies, disciplinary and other procedures, and also to update company handbooks.
As a very important side issue, which promises to move centre stage, Employers who use AI tools for tasks such as recruitment purposes, or for employee performance
assessments, will also need to ensure they fully appreciate the legal implications and the legal and regulatory requirements of using such AI tools.
There is a body of legislation which already applies to the use of such tools, but it may not be apparent that these new and emerging technologies are subject to our laws on data protection, equalities, and anti discrimination laws, as well as needing to comply with relevant regulatory requirements; and there is also a requirement for Employers to have the
appropriate AI policies and procedures in place, and of course the tools to check the accuracy and compliance of AI outputs.