Legislation – Employment Rights Act 2025

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Part 2Other matters relating to employment

Procedure for handling redundancies

29Collective redundancy: extended application of requirements

(1)

Chapter 2 of Part 4 of the Trade Union and Labour Relations (Consolidation) Act 1992 (procedure for handling redundancies) is amended as follows.

(2)

In section 188 (duty of employer to consult representatives)—

(a)

before subsection (1) insert—

“A1

Subsection (1) applies where an employer is proposing to dismiss as redundant within a period of 90 days or less—

(a)

at least the threshold number of employees (see section 195A), or

(b)

20 or more employees at one establishment.”;

(b)

in subsection (1), for the words from “Where” to “the employer” substitute “The employer”;

(c)

in subsection (1A), for “(1)” substitute “(A1)”;

(d)

after subsection (2) insert—

“(2A)

This section does not require the employer to—

(a)

consult all of the appropriate representatives together, or

(b)

undertake the consultation with a view to reaching the same agreement with all of the appropriate representatives.”;

(e)

in subsection (4)—

(i)

in paragraph (c), at the beginning insert “where the employees whom it is proposed to dismiss as redundant are at only one establishment,”;

(ii)

after paragraph (c) insert—

“(ca)

where the employees whom it is proposed to dismiss as redundant are at more than one establishment—

(i)

the total number of employees of any such description employed by the employer, and

(ii)

details of the establishments at which those employees are employed,”.

(3)

In section 193 (duty of employer to notify Secretary of State of certain redundancies)—

(a)

omit subsection (1);

(b)

before subsection (2) insert—

“(1A)

Subsection (2) applies where an employer is proposing to dismiss as redundant within a period of 90 days or less—

(a)

at least the threshold number of employees (see section 195A), or

(b)

20 or more employees at one establishment.”;

(c)

in subsection (2)—

(i)

for the words from “An employer” to “period” substitute “The employer”;

(ii)

omit paragraphs (a) and (b);

(d)

after subsection (2) insert—

“(2A)

The notice must be given—

(a)

before the employer gives notice to terminate an employee’s contract of employment in respect of any of the dismissals;

(b)

at least 30 days before the first of the dismissals takes effect, or, where the employer is proposing to dismiss 100 or more employees as mentioned in subsection (1A), at least 45 days before the first of the dismissals takes effect.”;

(e)

in subsection (3), for “(1) or (2)” substitute “(1A)”;

(f)

in subsection (4)(a), omit the words from “in relation to the establishment” to the end;

(g)

in subsection (6), omit “(1) or”;

(h)

in subsection (7), for “(1)” substitute “(2)”.

(4)

In section 193A (redundancies of ships’ crew)—

(a)

in subsection (1)(a), omit “193(1) or”;

(b)

in subsection (2), for “section 193(1) or (2)” substitute “section 193(2)”.

(5)

After section 195 insert—

“195AConstruction of references to threshold number of employees

(1)

In this Chapter references to the threshold number of employees are references to the number of employees determined in accordance with regulations made by the Secretary of State under this section.

(2)

Regulations under this section may (among other things) provide that the number is—

(a)

a specified number;

(b)

a number determined by reference to a specified percentage of employees;

(c)

a number that is the highest or lowest of two or more numbers, whether those numbers are specified numbers, determined by reference to a specified percentage of employees, or determined in another way specified in the regulations.

(3)

But the regulations may not provide in any case for the threshold number of employees to be lower than 20.

(4)

For the purposes of determining a number by reference to a specified percentage of employees, the regulations may make provision for determining how many employees an employer has, including (among other things)—

(a)

provision about the time by reference to which that determination is to be made;

(b)

provision excluding employees of a specified description from being taken into account in that determination.

(5)

Regulations under this section may make different provision for different purposes, including (among other things)—

(a)

different provision in respect of different provisions of this Chapter;

(b)

different provision in respect of different descriptions of employer.

(6)

Regulations under this section may contain such incidental, supplementary or transitional provision as appears to the Secretary of State to be necessary or expedient.

(7)

Regulations under this section are to be made by statutory instrument.

(8)

A statutory instrument containing regulations under this section (whether alone or with other provision) may not be made unless a draft of the instrument is laid before and approved by a resolution of each House of Parliament.

(9)

In this section “specified” means specified in the regulations.”

(6)

In section 197 (power to vary provisions), in subsection (1)—

(a)

in paragraph (a), for “188(2) and 193(1)” substitute “188(1A) and 193(2A)(b)”;

(b)

in the words after paragraph (b), for “188(2) and 193(1)” substitute “188(1A) and 193(2A)(b)”.

(7)

In section 198A (employees being transferred to the employer from another undertaking)—

(a)

in subsection (1)(b), for the words from “20 or more employees” to “or less,” substitute “within a period of 90 days or less—

(i)

at least the threshold number of employees (see section 195A), or

(ii)

20 or more employees at one establishment,”;

(b)

in subsection (4)(a)—

(i)

for “and as if” substitute “and, where relevant, as if”;

(ii)

for “(1)(b)” substitute “(1)(b)(ii)”.

30Collective redundancy consultation: protected period

(1)

Chapter 2 of Part 4 of the Trade Union and Labour Relations (Consolidation) Act 1992 (procedure for handling redundancies) is amended as follows.

(2)

In section 189 (duty to consult representatives: complaint and protective award), in subsection (4), in the words after paragraph (b), for “90” substitute “180”.

(3)

In section 197 (power to vary provisions), in subsection (1)(b), for “periods” substitute “period”.

31Collective redundancy notifications: ships’ crew

(1)

In the Trade Union and Labour Relations (Consolidation) Act 1992, section 193A is amended in accordance with subsections (2) to (5).

(2)

For the heading substitute “Application of section 193 in certain cases involving redundancies of ships’ crew”.

(3)

In subsection (1)—

(a)

in the words before paragraph (a), for “has effect subject to this section” substitute “applies with the modifications set out in subsections (2) and (3)”;

(b)

in paragraph (b)—

(i)

at the beginning insert “some or all of”;

(ii)

for “vessel” substitute “ship”.

(4)

In subsection (2)—

(a)

before “to the competent authority” insert “, so far as relating to the members of crew of a ship within subsection (1)(b),”;

(b)

for “vessel” substitute “ship”;

(c)

for “instead of” substitute “as well as”.

(5)

After subsection (2) insert—

“(3)

Where this subsection applies, section 193 is to be read as if references in subsections (4) and (6) to a notice were to the notice that is required to be given to the Secretary of State.

(4)

In this section “ship” includes—

(a)

any kind of vessel used in navigation, and

(b)

hovercraft.”

(6)

In section 285 of the Trade Union and Labour Relations (Consolidation) Act 1992 (employment outside Great Britain)—

(a)

in subsection (1B), after “United Kingdom” insert “or a GB-linked ship”;

(b)

after subsection (2) insert—

“(3)

In this section, “GB-linked ship” means a ship providing a service—

(a)

for the carriage of persons or goods, with or without vehicles, and

(b)

that is within subsection (4) or (5).

(4)

A service is within this subsection if it is operated between a place in Great Britain and another place in the United Kingdom.

(5)

A service is within this subsection if—

(a)

ships providing the service entered a harbour in Great Britain on at least 120 occasions in the period of 12 months ending with the day when the redundancy proposal in question is settled by the employer, or

(b)

if the service has been provided for less than 12 months before that day, ships providing the service entered a harbour in Great Britain on at least 10 occasions in each month for which the service has been provided.

(6)

But a service is not within subsection (5) if the service—

(a)

is for the purpose of leisure or recreation, or

(b)

is provided by a fishing vessel.

(7)

In this section—

“harbour” has the same meaning as in the Harbours Act 1964;

“ship” has the same meaning as in section 193A (see subsection (4) of that section).”

Public sector outsourcing: protection of workers

32Public sector outsourcing: protection of workers

(1)

The Procurement Act 2023 is amended as follows.

(2)

After Part 5 insert—

“Part 5AOutsourcing: protection of workers

83AApplication of this Part

(1)

This Part provides for a Minister of the Crown, the Scottish Ministers and the Welsh Ministers to make provision for the protection of workers in relation to relevant outsourcing contracts (see section 83B).

(2)

Accordingly, in this Part, “appropriate authority”—

(a)

means—

(i)

a Minister of the Crown,

(ii)

the Scottish Ministers, or

(iii)

the Welsh Ministers, and

(b)

does not include a Northern Ireland department.

(3)

In addition to the restrictions in section 113, a Minister of the Crown—

(a)

may exercise a power under this Part for the purpose of regulating devolved Scottish authorities only in relation to joint or centralised procurement under a reserved procurement arrangement;

(b)

may not exercise a power under this Part for the purpose of regulating joint or centralised procurement under a devolved Scottish procurement arrangement.

(4)

The Scottish Ministers—

(a)

may only exercise a power under this Part for the purpose of regulating—

(i)

devolved Scottish authorities, or

(ii)

procurement under a devolved Scottish procurement arrangement;

(b)

may not exercise a power under this Part for the purpose of regulating—

(i)

joint or centralised procurement under a reserved procurement arrangement, or

(ii)

joint or centralised procurement under a devolved Welsh procurement arrangement.

(5)

In addition to the restrictions in section 111, the Welsh Ministers—

(a)

may exercise a power under this Part for the purpose of regulating devolved Scottish authorities only in relation to joint or centralised procurement under a devolved Welsh procurement arrangement;

(b)

may not exercise a power under this Part for the purpose of regulating joint or centralised procurement under a devolved Scottish procurement arrangement.

(6)

This Part does not apply in relation to—

(a)

a private utility;

(b)

a person referred to in regulation 4(1)(b) of the Utilities Contracts (Scotland) Regulations 2016 (S.S.I. 2016/49);

(c)

a devolved Welsh authority listed in Schedule 1 of the Social Partnership and Public Procurement (Wales) Act 2023 (asc 1);

(d)

procurement under a transferred Northern Ireland procurement arrangement, except to the extent that the procurement—

(i)

is carried out by a devolved Scottish authority, and

(ii)

is not joint or centralised;

(e)

a transferred Northern Ireland authority, except in relation to—

(i)

procurement under a reserved procurement arrangement,

(ii)

procurement under a devolved Scottish procurement arrangement, or

(iii)

procurement under a devolved Welsh procurement arrangement.

(7)

For the purposes of this section, procurement under a procurement arrangement is “joint or centralised” if as part of that procurement arrangement a contract is to be awarded following a procedure or other selection process carried out—

(a)

jointly by a devolved Scottish authority and another contracting authority which is not a devolved Scottish authority, or

(b)

by a centralised procurement authority or equivalent body.

83BRelevant outsourcing contracts

(1)

In this Part, “relevant outsourcing contract” means a contract in relation to which conditions A to C are met.

(2)

Condition A is met where the contract—

(a)

is a public contract under this Act, or

(b)

is a contract regulated by Scottish procurement legislation.

(3)

Condition B is met where the contract—

(a)

is a contract for the supply of services that include the performance of functions that are or have previously been performed by the contracting authority, or

(b)

is—

(i)

in the case of a public contract, a framework for the future award of a contract referred to in paragraph (a), or

(ii)

in the case of a contract regulated by Scottish procurement legislation, a framework agreement the purpose of which is to establish the terms governing a contract referred to in paragraph (a).

(4)

Condition C is met where the functions referred to in subsection (3)(a) are, or are expected to be, performed by individuals (“transferring workers”) who—

(a)

in performing the functions, are employed by the supplier or a sub-contractor under a worker’s contract, and

(b)

were employed by the contracting authority under a worker’s contract in performing functions of the same kind.

(5)

For the purposes of this Part—

(a)

“contract regulated by Scottish procurement legislation” means a contract the procurement of which by a devolved Scottish authority is regulated by Scottish procurement legislation;

(b)

in relation to a contract regulated by Scottish procurement legislation—

(i)

“contracting authority” means a devolved Scottish authority that is a contracting authority within the meaning of the relevant Scottish procurement legislation;

(ii)

“framework agreement” has the same meaning as in the relevant Scottish procurement legislation;

(iii)

“supplier” means an economic operator within the meaning of the relevant Scottish procurement legislation;

(iv)

“the relevant Scottish procurement legislation” means the Scottish procurement legislation regulating the procurement of the contract.

83CPower to specify provision for inclusion in relevant outsourcing contracts

(1)

An appropriate authority may by regulations specify provision to be included in a relevant outsourcing contract for the purpose of ensuring that—

(a)

transferring workers of a specified description are treated no less favourably as workers of the supplier or a sub-contractor than they were as workers of the contracting authority, and

(b)

workers of the supplier or a sub-contractor who are not transferring workers and are of a specified description are treated no less favourably than those transferring workers.

(2)

In carrying out the procurement of a relevant outsourcing contract, the contracting authority must—

(a)

take all reasonable steps to ensure that provision specified under subsection (1) is included in the contract;

(b)

where provision specified under subsection (1) is included in the contract, take all reasonable steps to secure that such provision is complied with.

(3)

Subsection (2) does not apply—

(a)

where the contracting authority or the relevant outsourcing contract is of a specified description, or

(b)

in specified circumstances.

(4)

In this section, “specified” means specified in regulations made by an appropriate authority.

83DCode of practice on relevant outsourcing contracts

(1)

An appropriate authority must prepare and publish a code of practice containing guidance to contracting authorities for the purpose of ensuring that, where a contracting authority carries out the procurement of a relevant outsourcing contract—

(a)

transferring workers of a description specified in the code are treated no less favourably as workers of the supplier or a sub-contractor than they were as workers of the contracting authority, and

(b)

workers of the supplier or a sub-contractor who are not transferring workers and are of a description specified in the code are treated no less favourably than those transferring workers.

(2)

An appropriate authority—

(a)

may amend or replace a code published by it under subsection (1), and

(b)

must publish any amended or replacement code.

(3)

A code published under subsection (1) or (2) must—

(a)

in the case of a code published by a Minister of the Crown, be laid before Parliament;

(b)

in the case of a code published by the Scottish Ministers, be laid before the Scottish Parliament;

(c)

in the case of a code published by the Welsh Ministers, be laid before Senedd Cymru.

(4)

In carrying out the procurement of a relevant outsourcing contract, the contracting authority must have regard to the code of practice for the time being published under subsection (1) or (2).

(5)

This section does not require an appropriate authority to do anything which the authority does not have power to do (see section 83A and Part 11).

83EInterpretation of this Part

(1)

In this Part—

“appropriate authority” has the meaning given in section 83A(2);

“contract regulated by Scottish procurement legislation” has the meaning given in section 83B(5)(a);

“relevant outsourcing contract” has the meaning given in section 83B;

“transferring worker”, in relation to a relevant outsourcing contract, has the meaning given in section 83B(4);

“worker” and “worker’s contract” have the same meaning as in the Employment Rights Act 1996 (see section 230 of that Act).

(2)

For the purposes of this Part, in relation to a contract regulated by Scottish procurement legislation, “contracting authority”, “framework agreement”, “supplier” and “the relevant Scottish procurement legislation” have the meaning given in section 83B(5)(b).

83FPower of Scottish Ministers to amend this Part

The Scottish Ministers may by regulations modify section 83A, 83B or 83E in consequence of a modification of Scottish procurement legislation.”

(3)

In section 2 (contracting authorities), after subsection (1) insert—

“(1A)

But see also section 83B(5)(b)(i) (which provides for “contracting authority” to have an extended meaning in relation to certain contracts regulated under Part 5A (outsourcing: protection of workers)).”

(4)

In section 122 (regulations)—

(a)

in subsection (4) (regulations of Ministers of the Crown subject to affirmative procedure), after paragraph (i) insert—

“(ia)

section 83C (provision for inclusion in relevant outsourcing contracts);”;

(b)

in subsection (10) (regulations of Welsh Ministers subject to affirmative procedure), after paragraph (g) insert—

“(ga)

section 83C (provision for inclusion in relevant outsourcing contracts);”;

(c)

in subsection (14) (regulations of Scottish Ministers subject to affirmative procedure), before paragraph (a) insert—

“(za)

section 83C (provision to be included in relevant outsourcing contracts);

(zb)

section 83F (power to amend section 83A, 83B or 83E);”.

(5)

In section 123 (interpretation), in subsection (1), in the definition of “appropriate authority”, at the end insert—

“(but see section 83A(2) for a different meaning of “appropriate authority” in Part 5A (outsourcing: protection of workers));”.

(6)

In section 124 (index of defined expressions), for the entry for “appropriate authority” substitute—

“appropriate authority (except in Part 5A)

section 123

appropriate authority (in Part 5A)

section 83A”.

(7)

In Schedule 9A (procurement by devolved Scottish authorities), at the appropriate place insert—

“Part 5A (outsourcing: protection of workers)”.

Duties of employers relating to equality

33Equality action plans

(1)

The Equality Act 2010 is amended as follows.

(2)

In Part 5 (work), in Chapter 3 (equality of terms), after section 78 insert—

“Equality action plans

78AEquality action plans

(1)

Regulations may require employers to—

(a)

develop and publish a plan (an “equality action plan”) showing the steps that the employers are taking in relation to their employees with regard to prescribed matters related to gender equality, and

(b)

publish prescribed information relating to the plan.

(2)

This section does not apply to—

(a)

an employer with fewer than 250 employees;

(b)

a public authority, other than—

(i)

a public authority specified in Part 1 of Schedule 19, or

(ii)

a public authority specified in Part 4 of Schedule 19 with the letter “D” included after the entry.

(3)

For the purposes of subsection (1), a matter is related to gender equality if it is related to advancing equality of opportunity between male and female employees.

(4)

Accordingly, matters related to gender equality include—

(a)

addressing the gender pay gap, and

(b)

supporting employees going through the menopause.

(5)

The regulations may, among other things, make provision about—

(a)

the content of a plan;

(b)

the form and manner in which a plan or information is to be published;

(c)

when and how frequently a plan or information is to be published or revised;

(d)

requirements for senior approval before a plan or information is published;

(e)

descriptions of employers;

(f)

descriptions of employee;

(g)

descriptions of information.

(6)

The regulations may not require an employer, after the first publication of information, to publish information more frequently than at intervals of 12 months.

(7)

The regulations may make provision for a failure to comply with the regulations to be enforced, otherwise than as an offence, by such means as are prescribed.

(8)

The reference to a failure to comply with the regulations includes a reference to a failure by a person acting on behalf of an employer.

(9)

A Minister of the Crown must consult—

(a)

the Commission, before making regulations under this section that apply to a public authority, and

(b)

the Welsh Ministers, before making regulations under this section that apply to a public authority specified in Part 4 of Schedule 19 with the letter “D” included after the entry.”

(3)

In Part 16 (general and miscellaneous), in section 208(5) (regulations subject to affirmative procedure), after paragraph (b) insert—

“(ba)

regulations under section 78A (equality action plans);”.

34Provision of information relating to outsourced workers

(1)

The Equality Act 2010 is amended as follows.

(2)

In section 78 (gender pay gap information), after subsection (3) insert—

“(3A)

Regulations under subsection (3)(d) may, among other things, make provision, in a case where an employer is a principal in relation to an individual who is a contract worker, requiring publication of the identity of the person who has contracted with the principal for the supply of the individual.

(3B)

In subsection (3A), “principal” and “contract worker” have the meaning that they have in section 41 (see section 41(5) and (7)).”

(3)

In section 153 (power to impose specific duties on public authorities), after subsection (1) insert—

“(1A)

Regulations under subsection (1) may, among other things, make provision, in a case where an employer is a principal in relation to an individual who is a contract worker, requiring publication of the identity of the person who has contracted with the principal for the supply of the individual.

(1B)

In subsection (1A), “principal” and “contract worker” have the meaning that they have in section 41 (see section 41(5) and (7)).”

(4)

In section 154 (power to impose specific duties: cross-border public authorities), after subsection (3) insert—

“(3A)

Regulations under this section made by a Minister of the Crown may, among other things, make provision, in a case where an employer is a principal in relation to an individual who is a contract worker, requiring publication of the identity of the person who has contracted with the principal for the supply of the individual.

(3B)

In subsection (3A), “principal” and “contract worker” have the meaning that they have in section 41 (see section 41(5) and (7)).”

Annual leave records

35Duty to keep records relating to annual leave

(1)

The Working Time Regulations 1998 (S.I. 1998/1833) are amended as follows.

(2)

In Part 2 (rights and obligations concerning working time), after regulation 16A insert—

“Records relating to annual leave entitlement16B.

(1)

An employer must—

(a)

keep records which are adequate to show whether the employer has complied with the entitlements conferred by regulations 13(1), 13A(1), 15B(2) and 16(1) and the requirements in regulations 14(2) and (6) and 15E(2);

(b)

retain such records for six years from the date on which they were made.

(2)

The records referred to in paragraph (1)(a) may be created, maintained and kept in such manner and format as the employer reasonably thinks fit.”

(3)

In regulation 29 (offences), in paragraph (1), after “the relevant requirements” insert “or with regulation 16B(1)”.

(4)

In regulation 29C (restriction on institution of proceedings in England and Wales)—

(a)

the existing provision becomes paragraph (1);

(b)

after that paragraph insert—

“(2)

But paragraph (1) does not prevent the Secretary of State from instituting proceedings in England and Wales for an offence under regulation 29(1) in respect of a failure to comply with regulation 16B(1) (duty to keep records).”

Employment businesses

36Extension of regulation of employment businesses

In section 13 of the Employment Agencies Act 1973 (interpretation), for subsection (3) substitute—

“(3)

For the purposes of this Act “employment business” means the business (whether or not carried on with a view to profit and whether or not carried on in conjunction with any other business) of participating in employment arrangements.

(3A)

“Employment arrangements” means arrangements under which persons who are, or are intended to be, in the employment of a person are, or are intended to be, supplied to act for, and under the control of, another person in any capacity.

(3B)

“Participating in” employment arrangements means doing any of the following in connection with the arrangements—

(a)

being an employer of the persons who are, or are intended to be, supplied under the arrangements;

(b)

paying for, or receiving or forwarding payment for, the services of those persons, in consideration of directly or indirectly receiving a fee from those persons;

(c)

supplying those persons (whether or not under the arrangements);

(d)

taking steps with a view to doing anything mentioned in paragraphs (a) to (c).”

Employment of children on heritage railways

37Guidance about the employment of children on heritage railways

(1)

The Office of Rail and Road and the Health and Safety Executive, acting jointly, must, before the end of the relevant 12-month period, prepare and publish guidance setting out circumstances in which a child carrying out activities for the purposes of a heritage railway in Great Britain is, or is not, to be regarded as employed in an industrial undertaking for the purposes of section 1 of the Employment of Women, Young Persons and Children Act 1920 (restrictions on the employment of children in industrial undertakings).

(2)

The Office of Rail and Road and the Health and Safety Executive, acting jointly—

(a)

may from time to time revise guidance published under this section;

(b)

must publish any revisions of that guidance.

(3)

In this section—

“heritage railway” means a railway which—

(a)

is operated for the purposes of—

(i)
preserving, recreating or simulating railways of the past, or
(ii)
demonstrating or operating historical or special types of motive power or rolling stock, and

(b)

is exclusively or primarily used for recreational or educational purposes;

“railway” includes a tramway;

“the relevant 12-month period” means the period of 12 months beginning with the day on which this Act is passed.

“appropriate authority (except in Part 5A)	section 123
appropriate authority (in Part 5A)	section 83A”.