ERA - consultation on collective redundancy trigger reforms
A new consultation has opened proposing the most significant overhaul of collective redundancy rules in a decade, meaning that employers will need to prepare for far reaching compliance changes. The consultation confirms that the current collective redundancy threshold, proposing to dismiss 20 or more employees at the same establishment within a period of 90 days or less, will remain in place, but also sets out several options for introducing a new employer wide trigger. Under the new model, employers would aggregate proposed redundancy dismissal numbers across the whole business rather than by establishment or location. The government outlines four options for determining when the employer-wide trigger would apply:
• adopting a single fixed number of proposed dismissals (between 250 and 1,000 redundancies), which the government favours;
• applying a single percentage to an employer’s total workforce;
• using different fixed thresholds based on employer size; or
• combining these approaches by applying a percentage threshold to smaller employers and a fixed number threshold to larger employers.
The consultation also sets out proposals for how employers should calculate their total number of employees when applying thresholds linked to employer size – it suggests a 5 April snapshot date. These proposals will mean substantial operational change for multi site employers. Any threshold the government selects will mean that collective consultation obligations apply to more restructures. The consultation also complements the confirmed increase in the maximum protective award from 90 days’ pay to 180 days’ actual pay from April 2026, which significantly raises employers’ financial exposure for non compliance. Whatever option is adopted, it will require employers to develop centralised HR systems capable of tracking dismissals over rolling 90 day periods, increasing administrative demands. The consultation closes on 21 May.
ERA - consultation on enhanced protections for striking workers
Another consultation has been launched, this time on proposals to strengthen protections for workers who take part in lawful strike action. The consultation opened on 26 February and comes ahead of an ERA provision that will come into force in October 2026, giving workers a statutory right not to suffer detriment where an employer acts for the sole or main purpose of preventing or deterring participation in official industrial action. The provision will also prohibit employers from penalising workers for taking part in strikes. These changes build on legislative amendments that took effect on 18 February, which removed the previous 12 week limit on automatic unfair dismissal protection for employees engaged in protected industrial action. The reform responds to a gap in UK employment law that the Supreme Court highlighted in a 2024 decision. The Supreme Court ruled that existing protections against detriment for trade union activities did not cover participation in lawful strike action, leaving workers protected against dismissal but exposed to lesser sanctions. The government proposes a general prohibition on all detriments rather than a defined list, arguing that a narrow approach could encourage avoidance. The proposals will protect individuals rather than trade unions. The consultation closes on 23 April.
ERA – landmark gender pay gap and menopause action plans
The government has launched supporting material to prepare employers with 250 or more employees for publishing gender pay gap and menopause action plans from April 2026. Yesterday, the government published guidance and a comprehensive suite of materials to assist with equality action plan preparation under several headings:
• recruiting staff;
• developing and promoting staff;
• building diversity into organisations;
• increasing transparency; and
• supporting women with health conditions and the menopause.
Employers can submit and publish their action plans on the gender pay gap service. The service will make these action plans publicly available alongside gender pay gap data and publication will become compulsory in 2027. More guidance will be published ahead of that deadline.
CMA backs balanced reform of non compete clauses to boost labour mobility
The Competition and Markets Authority published its response to the Department for Business and Trade’s working paper on potential reforms to non compete clauses in employment contracts. CMA argues that employers widely use non compete clauses and that these clauses can significantly restrict workers’ ability to move jobs, which CMA identifies as a key driver of innovation, productivity and economic growth. While recognising that non compete clauses can help employers protect legitimate business interests, CMA describes them as a “broad and often blunt” tool. But, it does not support a complete ban and instead backs a combined approach to reform. In particular, CMA supports a statutory ban on non compete clauses for workers below a defined salary threshold, alongside a clear statutory limit on the duration of non compete clauses for higher paid employees. CMA presents this approach as a balanced solution. The government will now consider responses before deciding whether to legislate and CMA’s views.
Government restricts key visa routes
From 5 March, the government is introducing immediate restrictions on study visas for nationals of Afghanistan, Cameroon, Myanmar, and Sudan. It will also suspend Skilled Worker visas for Afghan nationals. By changing the Immigration Rules through an amendment rather than primary legislation, the government is demonstrating how quickly visa routes can be withdrawn when it perceives abuse of the immigration system.
ERA – government finalises industrial action code updates
The government confirmed that revised statutory codes of practice to support 18 February ERA reforms on industrial action, including picketing, are in force. Websites that host (1) the statutory code of practice on picketing, and (2) the statutory code of practice on industrial action ballots and notice to employers, now explain that updated codes apply.
EDI Leaders’ Network – get involved!
We are planning our next EDI Leaders’ Network event. If your organisation has an EDI specialist or colleague who would like to be included in future sessions please let @Hayley Dalton know and we’d be delighted to add them to the group.
