Updates on Employment Rights Bill and Increase in National Minimum Wage

The KLG Employment Law Update: Employment Rights Bill: latest developments – November 2025 Newsletter

In this month’s edition, we provide an overview of key developments in UK employment legislation, particularly surrounding the Employment Rights Bill, which continues to progress through Parliament amid ongoing amendments and debate. Alongside this, the Government has launched new consultations, announced updates to existing employment processes, and confirmed key policy changes that will impact employers and employees alike. In this newsletter, we summarise the latest developments to help you stay informed and prepared for upcoming legal and procedural changes in the workplace.

Progress of the Bill

The Bill returned to the House of Lords for a second time during the “ping-pong” stage on 17 November. The Lords have maintained their position on five groups of amendments, all of which the Commons has previously rejected twice (on 15 September and 5 November).

The disputed amendments relate to:

• Introducing a six-month qualifying period for unfair dismissal claims, replacing day-one rights.
• Allowing zero hours workers to opt out of the right to be offered a guaranteed hours contract.
• Creating an exception from the Bill’s zero hours regime for seasonal workers.
• Retaining the turnout out threshold for industrial action ballots, which the Government has committed to abolish in the Bill.
• Keeping an “opt-in” rule for trade union political funds.

It is unclear how long this stand-off between the Commons and the Lords will continue. Royal Assent had been widely expected later this month, but that is now unlikely.

Workplace balloting

The Government has launched a consultation on a draft statutory Code of Practice governing electronic and workplace balloting for statutory union ballots. Currently, almost all statutory trade-union ballots must be conducted by post – a method widely regarded as outdated. Under the proposed changes, unions will be able to offer three additional voting methods alongside postal ballots: a fully electronic (digital) ballot; a hybrid electronic ballot (where members can vote either online or by post); and workplace balloting (in person at the workplace, via physical ballot box), though workplace ballots will only be permitted for industrial action ballots and will require employer consent. 

The draft Code of Practice sets out robust standards and practical guidance to ensure that ballots conducted in these new ways remain secure, confidential, fair and auditable. That includes requirements around cybersecurity, data encryption, independent scrutineers, audit logs, and secure handling of votes. It also lays out the responsibilities of unions, scrutineers and where required employers; guidance on how to choose an appropriate voting method for the circumstances; and good-practice principles for the conduct of ballots, whether electronic, hybrid or workplace-based. 

This consultation closes on 28 January 2026.

Employment rights for unpaid carers

On 19 November 2025, the Government launched a formal review of employment rights for unpaid carers. The review will assess how the existing unpaid leave entitlement introduced by the Carer’s Leave Act 2023  which gives employees the right to take up to a week’s unpaid carer’s leave per year is working in practice.

The review is expected to conclude in late 2026 with publication of findings and a roadmap for potential reforms.

ACAS Early Conciliation window to be extended from six weeks to twelve weeks

Since May 2014, anyone wishing to bring an employment tribunal claim must first notify Acas and consider early conciliation (unless a limited exemption applies). While participation in early conciliation is voluntary, a claimant cannot proceed to an employment tribunal without an early conciliation certificate.

At present, the early conciliation period can last for up to six weeks. However, regulations laid before Parliament last week will double this period to 12 weeks for notifications made to Acas on or after 1 December 2025. Notifications made on or before 30 November 2025 will continue to follow the current six-week limit. The stated aim of this change is to ease the pressure on Acas’s early conciliation service.

Although the extension to the conciliation period does not itself alter tribunal time limits, in practice it may still have an impact on employers. With Acas already struggling to contact some employers within the current six-week window, the combination of a longer conciliation period and the Employment Rights Bill’s proposal to extend the primary limitation period for most tribunal claims to six months could mean that employers remain unaware of potential claims for significantly longer period of time.

HR1 forms

It has long been the case that employers proposing to make collective redundancies must notify the Secretary of State in advance using a HR1 form. The deadline for submitting the form will depend upon the number of redundancies being proposed and failure to do so amounts to an offence.

From 30 November 2025, employers must complete and submit HR1 forms electronically. The new digital version replaces the paper version and has some notable differences: 

• The digital form requires total numbers of employees across affected establishments and total numbers of proposed redundancies – however, these will no longer need to be categorised by occupational group.
• The digital form contains a declaration from the employer confirming they have given copies of the form to all trade union and elected representatives. However, there is no option to export the digital form, meaning you will need to save and print the summary page of the form prior to submission – and circulate this to employee representatives manually.
• The new digital form will not accept consultation start dates in the future.

Minimum wage rises to £12.71 per hour from April 2026

The government has announced new increases to the national minimum wage, which will take effect from 1 April 2026. Under the updated rates, workers aged 21 and over will see their minimum wage rise from £12.21 to £12.71 per hour. Rates for younger workers will also increase, with those aged 18–20 rising from £10 to £10.85 per hour, and the rate for 16–17-year-olds and apprentices increasing from £7.55 to £8 per hour. These changes aim to help align earnings with the rising cost of living.

Closing Remarks

As these developments demonstrate, the employment law landscape continues to evolve at pace, with further changes expected in the months ahead. Employers should remain alert to the progress of the Employment Rights Bill, forthcoming regulatory updates, and new procedural requirements that may affect their obligations and internal processes. Staying informed and proactive will be key to ensuring compliance and minimising risk during this period of transition.

At Kalra Legal Group, we remain committed to guiding employers through the evolving employment law landscape with clarity and practical support. If you require assistance in reviewing these developments, understanding their implications, or implementing any necessary changes within your organisation, our specialist Employment Law team is here to help. 

Please do not hesitate to get in touch for tailored advice or further guidance.