Keeping up with employment law developments can be challenging for employers, especially with the ongoing implementation of the Employment Rights Act 2025 and other workplace reforms.
Our HR and employment law specialists at Bhayani Law have answered some of the most common questions employers are asking this month.
FAQs
Yes. Employers should review their GDPR and employee data protection documentation to ensure it reflects recent legal developments, including changes introduced under the Employment Rights Act 2025.
When processing employee and applicant personal data, employers must comply with the UK GDPR and demonstrate accountability through up-to-date policies and procedures.
Recent legal changes that may require updates to your documentation include:
- New obligations to retain statutory holiday records for six years
- Planned increases to employment tribunal limitation periods from three months to six months
- Extended ACAS Early Conciliation time limits
- The introduction of the Data Use and Access Act 2025
Employers should review:
- Employee privacy notices
- Data retention policies
- Records of processing activities
- Recruitment data procedures
- Holiday and payroll record keeping systems
Failure to maintain compliant documentation could increase legal and regulatory risks. Read more about our GDPR document pack here.
The Government is continuing to progress plans around mandatory ethnicity and disability pay gap reporting for larger employers.
Although legislation has not yet been finalised, employers with 250 or more employees should begin preparing for future reporting obligations.
The proposed Equality (Race and Disability) Bill is expected to introduce:
- Mandatory ethnicity pay gap reporting
- Mandatory disability pay gap reporting
- Additional equal pay protections
- Greater transparency obligations for employers
Many employers are already reviewing their workforce data and pay structures in anticipation of these reforms.
Statutory rates for family-related leave and statutory sick pay changed in April 2026.
Employers should ensure payroll systems, contracts, policies, and handbooks are updated to reflect the latest rates for:
- Statutory maternity pay
- Statutory paternity pay
- Statutory adoption pay
- Shared parental pay
- Statutory sick pay
The Employment Rights Act 2025 also introduced several family-friendly reforms, including expanded day-one rights for certain leave entitlements.
Employers should review their policies to ensure compliance.
Medical cannabis can legally be prescribed in certain circumstances in the UK. Employers should handle these situations carefully and avoid making assumptions.
If an employee informs you they are using prescribed medical cannabis:
- Request appropriate medical evidence where necessary
- Consider whether the employee may be disabled under the Equality Act 2010
- Assess any workplace health and safety implications
- Consider reasonable adjustments where appropriate
- Maintain confidentiality throughout the process
Disciplinary action should not be taken automatically simply because an employee is prescribed medical cannabis.
Each case should be considered individually and sensitively.
The Employment Rights Act 2025 is expected to place further restrictions on the use of NDAs in workplace situations involving harassment, discrimination, or whistleblowing.
The Government’s focus is on preventing employers from using confidentiality clauses to silence employees improperly.
Employers should review:
- Settlement agreements
- Employment contracts
- Confidentiality clauses
- Workplace investigation procedures
Any NDA wording that conflicts with statutory protections could become unenforceable.
Taking legal advice before updating contracts or settlement agreements is strongly recommended.
Since April 2026, employers must now keep adequate records relating to workers’ statutory holiday entitlement and pay.
This includes records of:
- Annual leave taken
- Holiday pay calculations
- Carry-over leave
- Payments in lieu of untaken holiday
Records must be retained for six years.
The Fair Work Agency is expected to enforce these obligations in the future, making accurate record keeping increasingly important for employers.
The Employment Rights Act 2025 introduces some of the most significant workplace reforms in recent years.
Employers should proactively review:
- Contracts of employment
- HR policies and procedures
- Disciplinary and grievance processes
- Holiday and absence management systems
- Data protection documentation
- Recruitment and onboarding processes
- Flexible working procedures
Training managers and HR teams will also be essential to reduce legal risks and maintain compliance.
At Bhayani Law, our employment lawyers and HR advisors support businesses with practical, commercially focused employment law and HR advice.
We can assist with:
To speak with our team, contact Bhayani Law today on 0333 888 1360 or complete our enquiry form.
