From April 6th 2026 employers now also have a duty to keep records in relation to annual leave and holiday pay. Whilst this sounds like good practice anyway, this is actually the first time there has been an employment law duty to do so.

The Employment Rights Act 2025 packs an imposing number of reforms into its 289 pages. Despite its length and complexity it will function mainly as a framework and its full practical effects will only become clear once the relevant regulations, codes of practice and updated guidance have been published.

What is changing?

Unused statutory holiday entitlement cannot be replaced by a payment in lieu, except when the employment is terminated.

What are an employer's obligations under the Working Time Regulations 1998? Under reg.4(2) of the Working Time Regulations 1998 (SI 1998/1833), an employer is obliged to retain up-to-date records of workers who have agreed to opt out of the 48-hour working week. Employers should maintain a list of the names of such workers, and a copy of the opt-out agreements.

The intent behind the measures relating to zero and low hours workers in the Employment Rights Act 2025 is to end one-sided flexibility and "exploitative zero hours contracts". This does not mean there will be an outright ban on them.

Most employers allow employees to self-certify their absence for the first 7 days of sickness, and require a fit note for longer absences. For SSP purposes an employer cannot require an employee to provide a fit note until after seven calendar days of illness. If an employee is absent without a fit note, where they have been sick for more than seven days, the employer may be entitled to withhold either contractual sick pay or SSP. The employer is entitled to require reasonabl

What is changing?

The Working Time Regulations 1998 (SI 1998/1833) specify minimum rest break and daily and weekly rest period entitlements for adult workers aged 18 and over, and for young workers under the age of 18 but above compulsory school age.

Under reg.12(1) of the Working Time Regulations 1998 (SI 1998/1833), adult workers are entitled to a minimum rest break of 20 minutes during any working day that exceeds six hours. Case law has established that workers are entitled to only one 20-minute rest break even where they continue to work for another six hours or longer. However, employers should consider the general health and wellbeing of workers when determining the frequency and length of rest breaks, particularly

All employees with at least two years' continuous service are entitled to written reasons for their dismissal on request. Where dismissal is with notice, the employee can request the statement before the contract comes to an end. Otherwise the request should be made within three months of the effective date of termination, which is the time limit for bringing a claim for unfair dismissal to an employment tribunal.

An employer might need to obtain a medical report on a prospective employee before confirming a conditional job offer for a particular role, where health or fitness is a factor determining the employee's ability to do the job.