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From 1 December 2025, the statutory Acas Early Conciliation (EC) period doubled from six to 12 weeks.

The change was intended to reduce pressure on Acas and the Employment Tribunal system by allowing more time to resolve disputes before litigation. But six months on, the data suggests that, while the intentions were good, the wider pressures on the system remain evident.

Demand for Early Conciliation remains high

Acas data shows a continuing increase in demand for EC:

Early Conciliation notifications have continued to rise, with monthly receipts increasing by around 40% between 2023 and late 2025.

Between April 2025 and February 2026, over 135,000 notifications were received.
However, on a positive note, EC still resolves a significant proportion of disputes, with around two thirds of cases not progressing to tribunal.
Early Conciliation remains a critical filter in the system. But the number and complexity of cases continue to increase, and there is still significant pressure on Acas resources.

Tribunal claims and backlogs continue to grow

Despite the extended conciliation window, tribunal workloads have increased further:

Single claims have risen sharply, reaching 11,857 claims in Q4 2025/26, up 58% year on year.

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Early Conciliation and the tribunal backlog

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The outstanding caseload is still growing, with backlogs exceeding 60,000 single claims in 2026.
Research also indicates over 65,000 open cases by December 2025, the highest level since 2017.
Crucially, claims continue to outpace disposals, meaning the backlog is still increasing rather than reducing.

Delays remain significant

The practical impact for employers is ongoing delay:

Average tribunal resolution times have increased to around 31 weeks, up from 19 weeks the previous year.

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Even straightforward cases, such as ordinary unfair dismissal, now take 12 to 18 months to reach a final hearing.
Complex cases are taking considerably longer. In some regions, hearings are being listed years in advance, with several instances of cases logged in early 2026 being scheduled for final hearings in 2030.

Has the 12-week extension made a difference?

The extension has provided more time for meaningful engagement in some cases, particularly where delays in appointing conciliators previously limited effective negotiation.

Moorepay has noted that the issue seen in November and December 2025, when respondents were being notified of EC after the certificate had been issued, has not occurred so far in 2026.

However, six months on, there is little evidence that the extension has reduced pressure on the system overall. The core issue remains capacity, due to:

Rising claim volumes
Increased case complexity, especially discrimination and whistleblowing claims
Ongoing shortages of judicial resource

What does this mean for employers?

The extended EC period is a mixed picture:

Opportunities: more time to settle disputes early and avoid tribunal.
Risks: longer periods of uncertainty, with claims potentially taking months to emerge and years to conclude.

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The key practical takeaway is unchanged: early engagement remains critical. Addressing issues at grievance stage and engaging constructively during Early Conciliation is still the most effective way to reduce cost, disruption and risk.

The first wave of major Employment Rights Act reforms are now in force.

A number of the April changes will already be familiar, particularly day one paternity leave, day one unpaid parental leave, and the new SSP rules.

But there are several other developments now in force that you should have on your radar.

Collective redundancy awards doubled

For dismissals on or after 6 April 2026, the maximum protective award for failure to collectively consult increased from 90 days’ pay to 180 days’ pay per affected employee.

Day one family leave rights

From 6 April 2026, both rights became available from the first day of employment, removing the previous service requirement.

Whistleblowing protection

Since 6 April 2026, workers who blow the whistle on sexual harassment have explicit protection from detriment and unfair dismissal.

Key changes to Statutory Sick Pay

The Lower Earnings Limit (LEL) has been removed, and SSP is now payable from the first day of sickness absence rather than the fourth. Acas also confirms that SSP is now the lower of £123.25 a week or 80% of average weekly earnings.

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Employment Rights Act

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Menopause and gender pay gap action plans

From 6 April 2026, employers of all sizes can do this voluntarily, ahead of a mandatory requirement for employers with 250 or more workers in 2027.

Trade union recognition process simplified

From 6 April 2026, unions no longer need to show that most workers in the proposed bargaining unit are likely to support recognition before starting the process, and where recognition is decided by ballot, only a simple majority of votes cast is now needed.

The previous rule requiring support from at least 40% of the whole bargaining unit has been removed. Government factsheets also confirm other technical changes designed to make recognition applications harder to block.

Holiday record keeping is now a legal duty

From 6 April 2026, employers must keep records that are adequate to show compliance with annual leave and holiday pay obligations.

Acas says those records must include annual leave taken, leave carried over, holiday pay, and payments in lieu, and must be kept for at least 6 years.

Updated statutory rates and limits

Annual rates and tribunal limits also increased from April. The main ones to note are:

Most statutory family-related payments have increased to £194.32 a week, or 90% of average weekly earnings if lower.
Statutory Sick Pay increased to £123.25 a week.

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The cap on a week’s pay for statutory redundancy pay and the unfair dismissal basic award increased to £751.
The compensatory award cap for unfair dismissal increased to £123,543, ahead of the cap being removed altogether on 1 January 2027.

Other provisions now in force

Alongside the ERA changes, Bereaved Partner’s Paternity Leave is now available. Acas says eligible fathers and partners can take up to 52 weeks of unpaid leave if the mother or primary adopter dies within the first year of the child’s life.

Acas notes this is separate legislation, but it is now live and relevant for employers updating their leave framework.

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Fair Work Agency

The Fair Work Agency is now up and running. Acas says the Agency was established on 7 April 2026 to bring together existing enforcement bodies and will take on enforcement of other employment rights, including holiday pay and statutory sick pay.

The Government has also confirmed Matthew Taylor as Chair and Lisa Pinney as CEO.

What employers should do now

If you’re working through the April changes, the most useful next steps are fairly practical:

Review leave and whistleblowing policies so they reflect the day one family leave changes and the new whistleblowing protection for sexual harassment.

Check payroll and absence processes so they can handle day one SSP, the removal of the lower earnings limit, and the new SSP calculation rules.
Put proper holiday record-keeping in place so you can evidence annual leave entitlement, holiday pay calculations, carry-over and leave taken if asked.
Review redundancy risk in light of the much higher protective award exposure for collective consultation failures.
Keep one eye on enforcement. With the Fair Work Agency now established, gaps in pay, holiday and record keeping are likely to attract more scrutiny than before.

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Recent case law has highlighted a key risk for employers in relation to Permanent Health Insurance (PHI) payments following dismissal.

The Court confirmed that, depending on contractual terms, PHI payments due after dismissal may still constitute wages, exposing employers to unlawful deduction from wages claims.

Where PHI benefits are contractual and triggered by incapacity rather than ongoing employment, entitlement may continue after dismissal.

Failure to make or correctly account for such payments can give rise to a wages claim, even where dismissal itself is not challenged.

Why this matters

Wages claims do not require qualifying service and may be brought independently of unfair dismissal proceedings. Employers therefore face potential financial exposure even where termination was otherwise lawful.

Risk increases where PHI terms are unclear, incorporated into contracts, or administered directly by the employer. Misalignment between payroll, HR and legal advice can compound this risk.

Recommended actions

Employers should review PHI documentation and contracts, clearly address benefit entitlement on termination, seek advice before ceasing payments, and ensure payroll teams are informed of any ongoing obligations.

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Post-dismissal PHI payments

Key Message for HR

Dismissal does not automatically extinguish all pay-related obligations. PHI benefits require careful handling to avoid unlawful deduction from wages claims.

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HR1 forms go fully digital

From 1 December 2025, employers must submit the HR1 (advance notification of redundancies) form online.

This form is required when an employer proposes to dismiss 20 or more employees within 90 days at one establishment. Online submission is now mandatory. Paper and email submissions are no longer accepted and all HR1 notifications must be completed via the GOV.UK digital portal.

Differences in the new form

No requirement to provide occupational group breakdowns.
A new redundancy reason: “Change in supply chain/loss of supply chain contract.”
Future consultation start dates cannot be entered; only current or past dates can be entered.

Practical considerations

No autosave: the form times out after 90 minutes, so employers need to gather all information before starting the process.
No retrieval: once submitted, the form cannot be retrieved – so employers should print or save the summary page for their records, and so they can give them to employee representatives.

Deadlines and notifications

Deadlines remain unchanged. Notification must be at least 30 days before the first dismissal (20 – 99 redundancies), or 45 days before first dismissal (100+ redundancies).

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Failure to comply remains a criminal offence, carrying unlimited fines.

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Single-sex space guidance updates

Following the Supreme Court’s For Women Scotland decision in April 2025, questions have continued about what the ruling means in practice for workplace facilities and wider employment issues.

The ruling confirmed that, for Equality Act 2010 purposes, ‘sex’ means biological sex. This means a person’s legal sex under the Equality Act is the sex recorded at birth, even if they hold a Gender Recognition Certificate.

However, the ruling didn’t directly decide how workplace facilities should be managed day to day. This has left employers balancing legal obligations with the rights, privacy, dignity and safety of all employees.

A quick recap

The EHRC’s initial update placed particular emphasis on single-sex toilets, changing rooms and washing facilities. This prompted questions and legal challenges, as the Supreme Court ruling did not directly address workplace facilities.

The EHRC later revised its position and restated the existing legal framework under the Workplace (Health, Safety and Welfare) Regulations 1992. In summary:

Employers must provide separate facilities for men and women, unless each facility is a self-contained, lockable, single-user room.
Where lawful single-sex facilities are provided, the EHRC says these should operate on the basis of biological sex.

Employers should not leave trans employees without access to suitable facilities and should consider mixed-sex or self-contained options where possible.

What's changed since?

Since then, several tribunal cases have considered workplace facilities and trans employees, including Sandie Peggie v NHS Fife.

The outcomes have varied and remain highly fact-specific. In some cases, employers have been criticised for failing to respond appropriately when concerns were raised. In others, tribunals have not found that a trans-inclusive approach was automatically unlawful.

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This reinforces that there is no absolute rule. Employers need to consider the specific facts, the nature of their facilities, any concerns raised and the impact on everyone involved.

What about the new EHRC Code?

A new draft EHRC Code of Practice was laid before Parliament on 21 May 2026.

While it provides some assistance in relation to single-sex spaces, it applies to services, public functions and associations, rather than employment. It is also not yet in force, as it is still awaiting the 40-day parliamentary scrutiny period.

We’re still waiting for the specific Employment Code of Practice, which is expected “in due course”.

What does this mean for employers?

For now, the position remains complex, with further clarification still needed through case law, legislation and statutory guidance. Employers should avoid blanket assumptions or knee-jerk changes. Instead, they should review their current facilities, policies and any concerns raised by employees carefully.

That means considering whether suitable single-sex and mixed-sex or self-contained options are available, and making sure managers know how to respond if concerns are raised.

Until further guidance is available, employers should continue to take a careful and balanced approach, ensuring they meet legal obligations while respecting the rights, safety and dignity of all employees in an area where even experts remain uncertain.

Recent reforms are reshaping how employers need to think about discrimination, harassment, whistleblowing and confidentiality.

Since 6 April 2026, sexual harassment has been expressly recognised as a protected disclosure, and further change is still to come, with new restrictions on the use of NDAs in harassment and discrimination cases expected in 2027, subject to consultation.

Why does this matter?

Recent legislative reforms significantly change how employers must manage harassment complaints, whistleblowing risk and confidentiality. What we’re seeing is a stronger push towards transparency, greater protection for workers, and tighter limits on the role confidentiality clauses can play.

NDA restrictions

Once in force, confidentiality clauses will be unenforceable where they seek to prevent workers from speaking about discrimination or harassment, or about how their employer responded.

This applies to settlement agreements, non-derogatory clauses and confidentiality provisions in contracts. The restriction also extends to third-party harassment.

Are NDAs being banned completely?

No. Confidentiality will remain permissible where it protects legitimate business interests. In limited cases, NDAs may still be used through 'excepted agreements', provided strict conditions are met, including independent legal advice and informed consent from the worker.

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Discrimination and harassment reforms

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Sexual harassment as a protected disclosure

From 6 April 2026, sexual harassment is expressly recognised as a protected disclosure. This increases the likelihood of harassment complaints being framed as whistleblowing concerns and raises the risk of interim relief applications.

Employers should anticipate increased whistleblowing claims, reduced confidentiality protection in settlements, and greater scrutiny of investigations and decision-making.

Recommended actions now

HR teams should review NDA practices, align harassment and whistleblowing policies, train managers, and prioritise early intervention and robust investigations.

Menopause support has been moving steadily up the HR agenda, and the Employment Rights Act 2025 has brought fresh attention to what employers may soon be expected to do.

You may have read that the Act requires businesses to have a “menopause policy”, but the headlines aren’t quite right.

Current position

From 6 April 2026, voluntary publication of a menopause plan was open to employers of all sizes.
From sometime in 2027, subject to regulations, a mandatory duty will only apply to employers with 250 or more employees.

When the duty takes effect, employers are expected to choose from a list of recommended actions, with at least one on the gender pay gap and at least one on menopause.

Options include manager training, occupational health advice, support groups, workplace adjustments, risk assessments and policy reviews.

Any employer breaching the duty could be publicly named.

The risk that already exists

Regardless of size, current equality law already protects menopausal employees. Menopause is not a standalone protected characteristic, but depending on symptoms, it can constitute a disability.

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Menopause at work: why act now?

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There is also additional protection under age and sex discrimination law. Where symptoms amount to a disability, employers have a duty to make reasonable adjustments.

Tribunal decisions in these areas are consistent, and claimants have succeeded where an employer failed to investigate, failed to make adjustments, or ran a performance or absence process without accounting for menopausal symptoms.

In one widely reported case, an employee experiencing brain fog and concentration difficulties was placed on performance management, denied a pay rise and had her sick pay stopped early, resulting in a £64,000 award.

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How big is the issue?

The average age of menopause in the UK is 51, meaning it affects women at the peak of their careers.

Around 8 in 10 women experience perimenopausal symptoms, with roughly a quarter experiencing them severely.

The effects that most disrupt work are often the less visible ones: brain fog, poor concentration, disturbed sleep, low mood and anxiety.

The CIPD found that 67% of working women aged 40 to 60 said symptoms had a mostly negative effect at work.

Research by the Fawcett Society found that one in ten women who worked through the menopause left a job because of their symptoms, and around 80% said their employer had no support in place.

Who is leading the way?

A growing number of employers are treating this as a serious workplace issue rather than a box-ticking exercise.

HSBC UK, first direct and M&S Bank were among the UK’s first organisations to gain Menopause Friendly Accreditation, with dedicated training, wellbeing hubs and even uniform redesigns in breathable fabrics.

Channel 4 launched the UK media industry’s first dedicated menopause policy back in 2019. BAE Systems was named Menopause Friendly Employer of the Year in 2024.

What these organisations share is that they built a package of support, including training managers, making practical adjustments and talking openly, rather than relying on a policy document sitting unread on an intranet.

Menopause support in action

HSBC UK, first direct and M&S Bank: Menopause Friendly Accreditation
Channel 4: Dedicated menopause policy
BAE Systems: Menopause Friendly Employer of the Year

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The business case: what can employers do now?

Supporting menopausal employees is not only about avoiding tribunals, but also an important retention and productivity decision.

Government research in 2025 estimated a cost to the UK economy of around £1.5 billion a year from women leaving work because of menopause.

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Losing women at the peak of their experience means losing institutional knowledge, leadership pipeline and the cost of replacing them.

If you have 250 or more employees, treat the equality action plan as a “when”, not an “if”. Publishing voluntarily now puts you ahead of the 2027 requirement.
If you have fewer than 250 employees, the action plan duty will not apply, but your equality obligations do.

Either way, as a best-practice approach, train managers to recognise and respond to symptoms, make reasonable adjustments where possible, factor symptoms into performance and absence processes, and build a culture where employees feel able to raise the subject.

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While much of the attention this year has been on the Employment Rights Act, this is something you may have missed and another development to watch out for.

On 9 June 2026, the Government opened a consultation, run jointly by the Department for Business and Trade and the Department of Health and Social Care, on strengthening rights for unpaid carers and parents of seriously ill children.

The consultation ends on 1 September 2026.

The current position

Since April 2024, employees have had the right to one week, or up to five days, of unpaid carer’s leave in any rolling 12-month period, to care for a dependant with a long-term care need.

It’s a day-one right, with no qualifying service, and it can be taken in single or half days rather than one block. Employees are protected from dismissal or detriment for using it.

In simple terms, the main criticism is that it’s unpaid. For many carers, losing a week’s pay, or even a day’s pay, is a significant issue.

This means the right is not used by many carers. When the need arises, they either take holiday or “go off sick” so they can maintain some income.

What’s being proposed

The consultation puts three things on the table:

Paid carer’s leave: the Government is asking how long a paid period should last and at what rate it should be paid.

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Paid carer’s leave: consultation launched

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More unpaid days: should unpaid leave be extended?
A “right to return”: should there be additional protection, similar to maternity rights, to protect an employee’s job during a longer absence for an intensive period of caring?

Alongside this sits “Hugh’s Law”, proposals for paid leave and financial support for parents following a child’s serious diagnosis, named after Hugh Menai-Davis, who died aged six in 2021.

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Why it matters for employers

Around three million people in the UK currently juggle work with caring responsibilities, and many reduce their hours or leave work altogether. This is an estimated cost to the economy of around £37 billion a year.

For employers, the issue is the same as it is with menopause and other family-friendly rights: supporting people through these pressures is increasingly tied to retaining experienced staff.

This consultation also fits a clear pattern. Family-friendly entitlements have been moving in one direction. Neonatal care leave and pay arrived in April 2025, and the Employment Rights Act has pushed a range of protections to day one. Paid carer’s leave would be a logical next step.

What to do now

The current unpaid entitlement still stands, and any new rights would follow further legislation.

But the consultation is open to employers as well as carers, so this is a genuine chance to have some input into what comes next.

Employers are encouraged to review how their carer’s leave and flexibility arrangements work in practice, and to respond before the 1 September deadline if these changes would affect their business.

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The UK labour market for young people has reached its most difficult position in over a decade.

For the quarter January to March 2026, the unemployment rate for 16 to 24-year-olds rose to 16.2%, up from 14.2% a year earlier and the highest rate since 2015.

Over the same period, the number of young people not in education, employment or training (NEET) passed one million for the first time since 2013, reaching around 1.01 million, or 13.5% of all 16 to 24-year-olds. For 18 to 24-year-olds, the NEET rate is approximately 15.8%.

Most concerning is that around 61% of NEET young people are economically inactive, which means they are not working or looking for work. This is the highest level since records began in 2001.

While these figures are ever-changing, the overall trend is clear: the number of young people out of work is increasing.

Why is this happening?

The situation is said to be the result of several factors. Entry-level, first-job vacancies, the traditional starting point for young people entering the world of work, have fallen to their lowest level since 2021.

The rise in employers’ National Insurance contributions from April 2025, together with higher minimum wage rates for younger workers, has made some employers more cautious about junior hiring. Estimates have put the increased cost of taking on an entry-level worker at around 7%.

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NEETs and the future workforce

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There has also been a worrying move from unemployment towards economic inactivity, with mental health conditions and long-term sickness now widely cited as the main underlying factors.

And what about AI?

To add to the above, we also have the rapid and increasing adoption of AI.

A British Chambers of Commerce study published in March 2026 found that 54% of UK SMEs are now using AI tools, more than double the 25% reported in 2024.

Most use generic tools that improve efficiency with little disruption, but around one in ten companies are using bespoke AI systems likely to result in a reduction in the number of employees required.

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This is noted to have the biggest impact on young people. AI is most readily able to perform the routine, repeatable tasks that have traditionally formed entry-level and graduate roles, such as research, data entry and first-draft work.

Where an employer concludes that a tool can perform the task, the first rung of the career ladder is at risk of being removed altogether.

The BCC’s recent forecast expects youth unemployment to rise towards 17% this year and warns that AI could make higher youth unemployment a structural, long-term feature rather than a passing dip.

Government action

The Government has recognised this situation and made youth unemployment a priority. Its Youth Guarantee, set out in the Get Britain Working White Paper and backed by £820 million over three years, promises every

young person access to training, an apprenticeship or support into work, and will fund around 350,000 new workplace opportunities.

A “New Deal” for young people, announced in March 2026, adds a guaranteed jobs scheme in the highest-need areas. The independent Milburn Review into youth inactivity is due to report in full in summer 2026.

How are employers affected?

The impact on employers will be long term.

Time spent NEET in youth is consistently linked to lower lifelong earnings, poorer health and repeated periods of unemployment.

Layered on top, the reduction of entry-level roles by both cost and automation creates a particular problem: if young people cannot secure a first job, they cannot gain the experience that produces the mid-level and

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senior staff employers will need in years to come.

Automating away junior positions may resolve a short-term cost issue while creating a long-term capability gap, increasing the skills shortages that around two-thirds of UK firms already report.

What can employers do?

There are practical steps employers can take now.

Rather than removing junior roles, it is prudent to redesign them around AI. Allow early-career staff to work alongside AI to deliver more while gaining hands-on experience with the technology that will shape their careers.

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Employers need to build AI literacy into early-careers training, make use of apprenticeship and skills funding, and engage with government-funded routes such as the Youth Guarantee.

They should also review entry requirements to remove unnecessary barriers, and build genuine mental health and wellbeing support into the offer.

Work experience and apprenticeships also provide a low-risk means of assessing and developing young talent.

The cheapest decision today may prove the most expensive tomorrow. Employers who build accessible, AI-enabled routes into work will be best placed to secure the skilled and committed workforce that others will shortly be competing for.

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The Government has launched a consultation on proposed reforms to zero-hours and low-hours contracts.

The proposals form part of the wider changes under the Employment Rights Act 2025.

The consultation seeks views on how these new rights will operate in practice ahead of anticipated implementation in 2027, and closes on 25 August 2026.

These reforms are intended to address what the Government describes as “one-sided flexibility”, where employers retain control over working patterns while workers experience uncertainty over hours and income.

1. Right to guaranteed hours

Employers will be required to offer a contract reflecting the hours a worker has regularly worked over a defined reference period. This will apply to those on zero-hours contracts and to “low-hours” workers whose guaranteed hours fall below a specified threshold.

2. Right to reasonable notice of shifts

Workers must be given appropriate advance notice of their shifts, improving predictability and enabling better work-life balance.

3. Compensation for short-notice changes

Where shifts are cancelled, moved or reduced at short notice, workers may be entitled to compensation.

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Government consultation on zero-hours contracts

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What is still to be decided?

The Government has indicated a preference for the “low-hours” threshold to sit somewhere between 8 and 20 hours per week, but the final threshold has not yet been set.

The reference period is also still to be confirmed, although this is expected to be around 12 weeks. Employers may also need to reassess eligibility regularly and make repeated offers where workers continue to meet the criteria, but the frequency of this obligation is not yet clear.

Further detail is also needed on scope and exemptions, including which roles, sectors or temporary arrangements may be excluded.

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Agency workers are expected to be included, with responsibility for offering guaranteed hours likely to fall on the hiring business in many cases.

What does this mean for employers?

Although zero-hours contracts are not being banned, these proposals represent a significant move in how they can be used.

Employers who rely on flexible or variable-hours arrangements should expect an increase in administration, with the need to track hours worked and review eligibility on an ongoing basis.

There may also be financial implications, particularly where compensation becomes payable for short-notice changes to shifts.

In practice, the reforms are likely to encourage a move towards more structured and predictable working arrangements for those who regularly work consistent hours.

What should employers do now?

Review their current use of zero-hours and low-hours contracts
Identify workers who regularly work consistent patterns
Ensure they have adequate scheduling practices and notice periods
Review whether their systems are fit for purpose when monitoring hours worked

Final thoughts

These reforms reflect a broader shift towards balancing flexibility with greater security for workers.

While flexibility will remain, employers will need to ensure their practices provide predictability and fairness. Preparing now will help organisations adapt more smoothly ahead of expected implementation in 2027.

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