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Government publishes updated implementation timetable for the Employment Rights Act 2025

On 16 July 2026, the Government published an updated implementation timeline for the Employment Rights Act 2025 ("ERA"), providing further clarity on when the next phase of employment law reforms will take effect.

Several changes have already been introduced during 2026, including reforms to Statutory Sick Pay, Day 1 rights to paternity leave and unpaid parental leave, enhanced whistleblowing protections and an increased protective award for collective redundancy consultation failures. For further information on the key ERA changes and other employment law reforms, please visit our Employment Law Updates Hub.

The latest update provides useful clarity on what employers should be preparing for over the coming months, particularly the reforms due in October 2026.

What is changing on 30 October 2026?

The Government's updated timeline indicates that the following reforms are expected to come into force on 30 October 2026:

•  the duty on employers to take all reasonable steps to prevent sexual harassment;

•  employer liability for harassment of employees by third parties;

•  a duty to inform workers of their right to join a trade union;

•  strengthened trade union rights of access to workplaces;

•  other trade union reforms, including freezing the bargaining unit once a recognition application has been made, enhanced rights for trade union representatives and protections against detriment for taking industrial action.

The Government's latest update also confirms that:

•  electronic workplace balloting will come into force on 31 August 2026;

•  reforms to tipping law have moved back from October to the end of 2026;

•  the extension of Employment Tribunal limitation periods (for most claims) from three months to six months is expected in October 2026.

What remains scheduled for 2027?

The Government has also reiterated that many of the ERA's most significant reforms remain scheduled for implementation in 2027, including:

•  reduction of the qualifying period for unfair dismissal from two years to six months;

•  reforms to zero-hours contracts;

•  enhanced flexible working rights;

•  additional protections for pregnant workers; and

•  proposed reforms to collective redundancy consultation requirements.

Looking ahead

The latest update does not materially alter the Government’s overall reform agenda. However, it provides greater certainty around implementation dates and confirms that employers should now be preparing for a significant package of reforms taking effect during autumn 2026, with further substantial changes to follow throughout 2027.

How can we help?

Our Employment team is continuing to monitor the implementation of the Employment Rights Act 2025 and the Government’s wider Plan to Make Work Pay reforms. If you would like to discuss how these changes may affect your organisation, please get in touch with your usual Michelmores contact or a member of our Employment team.

Right to work checks: the rules are changing – Is your business ready for 1 October 2026?

The Home Office has published updated right to work guidance ahead of significant changes to the illegal working regime, which are due to take effect on 1 October 2026. Whilst much of the media commentary has focused on an apparent expansion of right to work checks, the reality is more nuanced. The fundamental obligation to conduct right to work checks remains with the employer that directly engages the worker. The real change is that businesses higher up a labour supply chain may now face civil penalty exposure if they fail to implement prescribed compliance measures.

For HR teams, this means right to work compliance is no longer simply about checking employees. It is increasingly becoming a supply chain risk management issue.

What has changed?

The new Code of Practice introduces an "extended liability" regime in specific contractual arrangements. The provisions apply where:

•  a business contracts to provide work or services to a third party and engages another employer to provide workers to deliver those services;

•  an online matching platform connects service providers with customers; or

•  an individual is engaged under a contract that permits them to send a substitute to perform the work.

Where illegal working is identified, the Home Office will continue to seek to identify the employer with the direct contractual relationship with the worker. However, if that employer cannot be identified, or prescribed compliance requirements have not been met, liability may extend to another party higher up the contractual chain.

This represents a significant shift in risk allocation.

Do employers now need to conduct right to work checks on everyone in their supply chain?

No.

The Code is clear that the employer with the direct contractual relationship with the worker remains responsible for carrying out the prescribed right to work check and establishing a statutory excuse.

However, organisations can no longer assume that responsibility ends there.

Businesses that use agencies, labour providers, subcontractors or other outsourced labour arrangements must now ensure that appropriate contractual protections and compliance controls are in place throughout the contractual chain. Failure to do so could expose them to civil penalties if illegal working is subsequently identified.

Which businesses are most likely to be affected?

The changes are likely to have the greatest impact on businesses that:

•  source workers through agencies;

•  utilise subcontracted labour;

•  provide outsourced services for clients;

•  operate through multiple tiers of contractors;

•  engage consultants or contractors with substitution rights; or

•  use online platforms to match workers with customers.

For these organisations, compliance will no longer stop at confirming that direct employees have been checked.

The new compliance requirements

To establish a statutory excuse against extended liability, businesses within the contractual chain must be able to demonstrate compliance with a series of prescribed requirements. These include:

•  written contractual terms requiring right to work checks to be carried out;

•  restrictions on further subcontracting without consent;

•  audit rights to verify compliance;

•  enforcement mechanisms where illegal working is identified;

•  cooperation obligations in relation to Home Office investigations;

•  substitution controls; and

•  identity verification processes to ensure that the individual carrying out the work is the same person whose right to work was checked.

Importantly, businesses must retain evidence that these arrangements have been implemented and operated in practice. The Code expressly states that a person seeking to rely on a statutory excuse must be able to evidence compliance with the prescribed requirements.

Substitution clauses: an overlooked risk

Many organisations engage consultants or contractors under agreements that allow the contractor to provide a substitute.

The new Code places significant emphasis on these arrangements. Where substitution is permitted, employers must have processes in place to ensure that:

•  right to work checks are conducted on substitutes;

•  substitutes cannot commence work until those checks have been completed;

•  responsibility for checks is not delegated to the contractor; and

•  systems exist to verify that the individual performing the work is the same individual who has been checked.

This is likely to require many organisations to review standard consultancy agreements and contractor onboarding procedures before October.

Other key operational changes

The updated Employer's Guide also clarifies that expired physical Biometric Residence Permits (BRPs) are not acceptable evidence of a right to work. Employers should ensure that recruitment and onboarding teams are aware of this change.

The Home Office also continues to move towards digital immigration status verification and eVisa-based checking processes. Employers should therefore review existing procedures and ensure staff are comfortable conducting online right to work checks where appropriate.

What Should Employers Do Now?

Before 1 October 2026, organisations should:

•  review agency, contractor and subcontractor arrangements;

•  update labour supply contracts to include the prescribed right to work provisions;

•  assess whether existing audit rights are sufficient;

•  review substitution clauses and related controls;

•  ensure appropriate identity verification processes are in place;

•  train HR, procurement and operational teams on the new requirements; and

•  undertake an audit of existing right to work compliance processes.

Key changes at a glance

Michelmores' view

The most important takeaway for employers is this:

The question is no longer simply "Have we checked our employees?"

It is now:

"If illegal working is discovered anywhere within our labour supply arrangements, can we demonstrate that we have the contractual protections, verification processes and compliance controls required by the Code?"

For many businesses, particularly those relying on agency workers, subcontractors, outsourced service providers or contractor models, that will require a broader review of compliance arrangements well before 1 October 2026. The organisations that act now will be best placed to avoid civil penalties and demonstrate a statutory excuse if the Home Office comes calling.

UK immigration policy under Andy Burnham's Labour - a new direction for UK immigration?

Since officially taking office as Prime Minister on 21 July 2026, Andy Burnham's new Labour Government has yet to publish a detailed immigration programme. Then again, it seems only fair to allow him some time to unpack a few boxes before demanding a policy roadmap.

As a result, any assessment of the likely direction of travel must, for now, be based on parliamentary voting records, public statements and recent interviews.

Whilst the full picture remains unclear, several early indicators provide some insight into the Government's potential approach.

Continuing with a strong focus on border security

Recent comments from the Prime Minister suggest that maintaining public confidence in the immigration system will be a key priority. In particular, a continued focus from his predecessor on tackling illegal immigration and strengthening border security measures. This is consistent with Mr Burnham's recent support for immigration legislation (The Immigration and Asylum Bill 2026)  aimed at reinforcing enforcement powers and asylum controls.

A slightly more positive approach to legal migration

In contrast, early indications suggest a more pragmatic approach to legal migration. Whilst Mr Burnham has acknowledged that net migration should continue to fall, there is little in his parliamentary record or public commentary to suggest that he views labour shortages as a problem that should be addressed primarily by employers recruiting and training from the domestic workforce. That contrasts with recent political narratives which have placed greater emphasis on reducing reliance on migrant labour and requiring employers to focus more heavily on the UK labour market. Instead, Mr Burnham's comments to date may indicate a greater willingness to recognise the role that legal migration can play in addressing skills and workforce shortages across key sectors of the economy.

Settlement reforms remain under the spotlight

One of the most significant areas to watch will be the future of settlement and indefinite leave to remain.

Mr Burnham has indicated that he broadly supports proposals previously advanced by Shabana Mahmood, including the headline measure of increasing the qualifying period for settlement from five years to ten years. Such a change would have substantial implications for sponsored workers and the organisations that employ them.

However, the debate is far from settled. A House of Lords Committee report published on 23 June 2026 raised significant concerns regarding the proposed reforms, warning that they could entrench poverty, increase the risk of labour exploitation and have adverse consequences for children. The Committee also expressed the view that applying such changes retrospectively would be "manifestly unfair" and could damage the UK's attractiveness as a destination for highly skilled migrant workers.

The Home Office led by Ms Mahmood is now expected to provide a formal response to those findings. Whether the Burnham Government maintains the proposed reforms, modifies them, or takes an entirely different approach remains to be seen.

Looking ahead

At present, there is still relatively little detail available regarding the Government's long-term immigration strategy. Employers, sponsors and migrant workers will therefore be watching closely for the publication of formal policy documents and legislation over the coming months.

We will continue to monitor developments and provide further updates as the Government's immigration agenda becomes clearer.

Q: A new starter has asked for unpaid parental leave. Are there any service requirements?

A: No. Since 6 April 2026, unpaid parental leave has been a day-one right and employees no longer need one year's continuous service to qualify. However, employees must still satisfy the other eligibility requirements, including having parental responsibility for the child, provide the required notice and comply with the rules on how parental leave may be taken.