Legislation – Employment Rights Act 2025
Schedule 2Consequential amendments relating to sections 1 to 5
Insolvency Act 1986
1
Employment Tribunals Act 1996
2
The Employment Tribunals Act 1996 is amended as follows.
3
(1)
Section 12A (financial penalties) is amended as follows.
(2)
- “(aa)
in relation to a right conferred by Chapter 3 or 4 of Part 2A, or section 47H, of the Employment Rights Act 1996, includes a person who is an employer by virtue of section 27BJ(7) or (as the case may be) 27BP(8) of that Act;
- (ab)
in relation to a right conferred by Part 1 or 2 of Schedule A1 to the Employment Rights Act 1996, or Chapter 6 of Part 2A of that Act so far as relating to Part 1 of Schedule A1 to that Act, includes the hirer within the meaning of the relevant Part of that Schedule;
- (ac)
in relation to a right conferred by Part 1, 2 or 3 of Schedule A1 to the Employment Rights Act 1996, includes (where it would not otherwise do so) the work-finding agency within the meaning of the relevant Part of that Schedule;
- (ad)
in relation to a right conferred by section 47I of the Employment Rights Act 1996, includes (where it would not otherwise do so) a person who is a relevant person within the meaning of that section;”.
(3)
“—
- (a)
includes an individual seeking to be employed by a person as a worker;
- (b)
in relation to a right conferred by Chapter 3 or 4 of Part 2A, or section 47H, of the Employment Rights Act 1996, includes an individual who is a worker by virtue of section 27BJ(7) or (as the case may be) 27BP(8) of that Act;
- (c)
in relation to a right conferred by—
- (i)
Part 1, 2 or 3 of Schedule A1 to the Employment Rights Act 1996,
- (ii)
Chapter 6 of Part 2A of that Act so far as relating to Part 1 of Schedule A1 to that Act, or
includes (where it would not otherwise do so) an agency worker within the meaning of Part 2A of that Act (see section 27BV of that Act).”
4
(1)
Section 16 (power to provide for recoupment of benefits) is amended as follows.
(2)
(3)
“(7)
In the application of this section to payments which are the subject of proceedings under Chapter 2, 3 or 4 of Part 2A of the Employment Rights Act 1996, or Chapter 6 of Part 2A of that Act so far as relating to Chapter 2 of that Part, and which are compensation for loss of wages (see subsection (1)(a))—
(a)
references to an employer are to be read as if they were references to an employer within the meaning of the relevant Chapter of that Part;
(b)
references to an employee are to be read as if they were references to a worker within the meaning of the relevant Chapter of that Part.
(8)
In the application of this section to payments which are the subject of proceedings under Part 1, 2 or 3 of Schedule A1 to the Employment Rights Act 1996, or Chapter 6 of Part 2A of that Act so far as relating to Part 1 of that Schedule, and which are compensation for loss of wages (see subsection (1)(a))—
(a)
references to an employer are to be read as if they were references to a hirer or (as the case may be) a work-finding agency within the meaning of the relevant Part of that Schedule;
(b)
references to an employee are to be read as if they were references to an agency worker within the meaning of Part 2A of that Act.
(9)
In the application of this section to payments under Part 5 of the Employment Rights Act 1996 (see subsection (1)(c)(i)) by virtue of section 47H of that Act—
(a)
references to an employer are to be read as if they were references to an employer within the meaning of that section;
(b)
references to an employee are to be read as if they were references to a worker within the meaning of that section.
(10)
In the application of this section to payments under Part 5 of the Employment Rights Act 1996 (see subsection (1)(c)(i)) by virtue of section 47I of that Act—
(a)
references to an employer are to be read as if they were references to a relevant person within the meaning of that section;
(b)
references to an employee are to be read as if they were references to an agency worker within the meaning of Part 2A of that Act.
(11)
In the application of this section to payments under section 27BP(1) of the Employment Rights Act 1996 (see subsection (1)(da))—
(a)
references to an employer are to be read as if they were references to an employer within the meaning of Chapter 4 of Part 2A of that Act;
(b)
references to an employee are to be read as if they were references to a worker within the meaning of that Chapter.
(12)
In the application of this section to payments under paragraph 22(1) of Schedule A1 to the Employment Rights Act 1996 (see subsection (1)(da))—
(a)
references to an employer are to be read as if they were references to a work-finding agency within the meaning of Part 2A of that Act;
(b)
references to an employee are to be read as if they were references to an agency worker within the meaning of that Part.”
5
In section 18 (conciliation: relevant proceedings), in subsection (1)(b)—
Employment Rights Act 1996
6
The Employment Rights Act 1996 is amended as follows.
7
In section 27 (meaning of “wages” for purposes of Part 2 of the Act), in subsection (1)—
(a)
(b)
(c)
renumber the paragraph (ce) inserted by the Employment (Allocation of Tips) Act 2023 as paragraph (ch).
8
In section 27A (exclusivity terms unenforceable in zero hours contracts), omit subsections (1) and (2).
9
In section 27B (power to make further provision in relation to zero hours workers)—
(a)
omit subsection (4);
(b)
in subsection (6)(a) and (b) (inserted by section 8), for “prescribed” substitute “specified”
;
(c)
omit subsections (7) and (8).
10
“47HZero hours workers and similar
(1)
A worker has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by the worker’s employer done on the ground that the worker—
(a)
(b)
(c)
(d)
brought proceedings against the employer under—
(i)
section 27BG,
(ii)
section 27BN,
(iii)
section 27BT, or
(iv)
section 27BY(5), or
(e)
alleged the existence of any circumstance which would constitute a ground for bringing any proceedings within paragraph (d) (whether or not the worker referred to the possibility of bringing such proceedings).
(2)
(3)
(4)
A worker has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by the worker’s employer done on the ground that—
(a)
the duty imposed by section 27BA(1) applies to the employer in relation to the worker and a particular reference period, or
(b)
the employer believes that that duty so applies.
(5)
This section does not apply where—
(a)
the worker is an employee, and
(b)
the detriment in question amounts to dismissal within the meaning of Part 10.
(6)
References to “worker” and “employer” in this section, section 48(1BA) and section 49 so far as relating to a complaint under section 48(1BA) are to be read with the modifications set out in—
(a)
(7)
In this section “reference period” has the same meaning as in Chapter 2 of Part 2A (see section 27BA(4)).”
11
“47IAgency workers and Schedule A1 rights
(1)
An agency worker has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by a relevant person done on the ground that the agency worker—
(a)
(b)
(c)
(e)
alleged the existence of any circumstance which would constitute a ground for bringing any proceedings within paragraph (d) (whether or not the agency worker referred to the possibility of bringing such proceedings).
(2)
(3)
(4)
An agency worker has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by a relevant person done on the ground that—
(a)
(b)
the relevant person believes that that duty so applies.
(5)
This section does not apply where—
(a)
the worker is an employee of the relevant person, and
(b)
the detriment in question amounts to dismissal within the meaning of Part 10.
(6)
For the purposes of this section, a person is a “relevant person”, in relation to an agency worker, if the person is (or has been)—
(a)
a work-finding agency with which the agency worker has a worker’s contract or an arrangement by virtue of which the agency worker is (or is to be) supplied to work for and under the supervision and direction of another person;
(b)
a person for and under the supervision and direction of whom the agency worker is (or is to be) supplied to work;
(c)
a person who is (or is to be) involved in the supply of the agency worker to a person falling within paragraph (b) or the payment of the agency worker for work done for such a person.
(7)
In this section—
“agency worker” has the same meaning as in Part 2A (see section 27BV);
“work-finding agency” has the same meaning as in Part 2A (see section 27BV).”
12
(1)
Section 48 (enforcement) is amended as follows.
(2)
“(1BA)
A worker may present a complaint to an employment tribunal that the worker has been subjected to a detriment in contravention of section 47H.”
(3)
(4)
In subsection (2), for “or (1B)” substitute “, (1B) or (1BA)”
.
(5)
(6)
In subsection (4), in the words after paragraph (b), after “hirer” insert “, or a relevant person (within the meaning of section 47I),”
.
(7)
In subsection (6), after “49” insert “, except so far as relating to an alleged detriment in contravention of section 47I,”
.
13
(1)
Section 49 (remedies) is amended as follows.
(2)
In subsection (1), for “or (1B)” substitute “, (1B) or (1BA)”
.
(3)
“(1B)
Where an employment tribunal finds a complaint under section 48(1BB) well-founded, the tribunal—
(a)
must make a declaration to that effect, and
(b)
may make an award of compensation to be paid by the relevant person (within the meaning of section 47I) to the complainant in respect of the act or failure to act to which the complaint relates.”
(4)
In subsection (2), for “and (6)” substitute “, (6), (7) and (7A)”
.
(5)
(6)
“(7A)
Where—
(a)
the complaint is made under section 48(1BA),
(b)
the detriment to which the worker is subjected is the termination of the worker’s contract, and
(c)
that contract is not a contract of employment,
any compensation must not exceed the compensation that would be payable under Chapter 2 of Part 10 if the worker had been an employee and had been dismissed for a reason specified in section 104BA.”
(7)
“(7B)
Where—
(a)
the complaint is made under section 48(1BB),
(b)
the detriment to which the agency worker is subjected is the termination of a worker’s contract between the agency worker and the relevant person, and
(c)
that contract is not a contract of employment,
any compensation must not exceed the compensation that would be payable under Chapter 2 of Part 10 if the agency worker had been an employee and had been dismissed for a reason specified in section 104BB (and “agency worker” and “relevant person” have the same meaning in this subsection as in section 47I).”
14
“104BAGuaranteed hours
(1)
An employee who is dismissed is to be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that the employee—
(a)
(2)
(3)
An employee who is dismissed is also to be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that the employee—
(b)
alleged the existence of any circumstance which would constitute a ground for bringing such proceedings (whether or not the employee referred to the possibility of bringing such proceedings).
(In relation to other proceedings under section 27BG, see section 104.)
(4)
It is immaterial for the purposes of subsection (3) whether or not the proceedings were, or would have been, well-founded provided that the employee acted in good faith in bringing the proceedings or alleging the existence of the circumstance.
(5)
An employee who is dismissed is also to be regarded for the purposes of this Part as unfairly dismissed if—
(a)
(b)
the reason (or, if more than one, the principal reason) for the dismissal is that the employer sought to avoid the necessity of complying with that duty in relation to the employee and that reference period.
(6)
15
“104BBGuaranteed hours: agency workers
(1)
An employee who is dismissed by a relevant person (who is their employer) is to be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that the employee—
(a)
(2)
(3)
An employee who is dismissed by a relevant person (who is their employer) is also to be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that the employee—
(b)
alleged the existence of any circumstance which would constitute a ground for bringing such proceedings (whether or not the employee referred to the possibility of bringing such proceedings).
(4)
It is immaterial for the purposes of subsection (3) whether or not the proceedings were, or would have been, well-founded provided that the employee acted in good faith in bringing the proceedings or alleging the existence of the circumstance.
(5)
An employee who is dismissed by a relevant person (who is their employer) is also to be regarded for the purposes of this Part as unfairly dismissed if—
(a)
(b)
the reason (or, if more than one, the principal reason) for the dismissal is that the employer sought to avoid the necessity of that duty having to be complied with in relation to the employee and the reference period.
(6)
In this section—
16
In section 105 (redundancy)—
(a)
“(7BZA)
This subsection applies if the reason (or, if more than one, the principal reason) for which the employee was selected for dismissal was—
(b)
(b)
“(7BZB)
This subsection applies if the reason (or, if more than one, the principal reason) for which the employee was selected for dismissal was—
(b)
17
In section 108 (qualifying period of employment), in subsection (3)—
(a)
18
19
20
(1)
Section 194 (House of Lords staff) is amended as follows.
(2)
“(aza)
Part 2A, apart from Chapter 1 of that Part,”.
(3)
In subsection (2)(c), for “and 47E” substitute “, 47E and 47H”
.
21
(1)
Section 195 (House of Commons staff) is amended as follows.
(2)
“(aza)
Part 2A, apart from Chapter 1 of that Part,”.
(3)
In subsection (2)(c), for “and 47E” substitute “, 47E and 47H”
.
22
(1)
Section 199 (mariners) is amended as follows.
(2)
“(b)
Part 2,
(bza)
Part 2A, apart from Chapter 1 of that Part,
(bzb)
Parts 2B, 3 and 5,”.
(3)
“(9)
In the application of subsection (7) to the provisions mentioned in subsection (8)(bza), the reference in subsection (7)(b) to a contract of employment is to be read as a reference to a worker’s contract.”
23
In section 200 (police officers), in subsection (1)—
(b)
after “47C,” insert “47H,”
.
24
(1)
Section 202 (national security restrictions on disclosure of information) is amended as follows.
(2)
(3)
(4)
In subsection (2)(g)(i)—
(5)
25
(1)
Section 205 (remedy for infringement of certain rights) is amended as follows.
(2)
(3)
“(1B)
In relation to the rights conferred by—
(b)
section 47H,
(4)
“(3)
26
(1)
Section 206 (institution or continuance of tribunal proceedings) is amended as follows.
(2)
(3)
“(10)
In the application of this section and section 207 in relation to Chapter 2, 3 or 4 of Part 2A, or Chapter 6 of Part 2A so far as relating to Chapter 2 of that Part, references to an employee are to be read as if they were references to a worker within the meaning of the relevant Chapter of that Part.
(11)
(12)
In the application of this section and section 207 in relation to Chapter 5 of Part 2A (including Schedule A1), or Chapter 6 of Part 2A so far as relating to Part 1 of Schedule A1—
(a)
references to an employer are to be read as if they were references to—
(i)
a hirer, or
(ii)
a work-finding agency, and
(b)
references to an employee are to be read as if they were references to an agency worker,
(13)
In the application of this section and section 207 in relation to section 47H—
(a)
references to an employer are to be read as if they were references to an employer within the meaning of that section;
(b)
references to an employee are to be read as if they were references to a worker within the meaning of that section.
(14)
In the application of this section and section 207 in relation to section 47I—
(a)
references to an employer are to be read as if they were references to a relevant person within the meaning of that section;
(b)
references to an employee are to be read as if they were references to an agency worker within the meaning of Part 2A.”
27
“A1
Where the calculation is for the purposes of section 27BI, the calculation date is—
(a)
B1
Where the calculation is for the purposes of section 27BI as applied by section 27BY(6)(a) in relation to a complaint under section 27BY(5), the calculation date is the latest day of the reference period to which the complaint relates on which the worker was employed by the employer under a worker’s contract.”
28
29
In section 235 (definitions for purposes of the Act)—
(a)
(b)
in subsection (2A) (definition of “limited-term contract”), after “contract of employment” insert “or other worker’s contract”
;
(c)
in subsection (2B) (definition of “limiting event”), in the words before paragraph (a), after “contract of employment” insert “or other worker’s contract”
.
30
In section 236 (orders and regulations), in subsection (3) (regulations subject to affirmative procedure)—
(a)
Bankruptcy (Scotland) Act 2016
31
In the Bankruptcy (Scotland) Act 2016 (asp 21), in Schedule 3 (preferred debts), in paragraph 10(2)—
(a)
(b)
in paragraph (a), for “the Employment Rights Act 1996” substitute “that Act”
.