Analysis

Major shake-up of employment law raises challenges for UK businesses

By Tim Evershed 2026-01-13T08:00:00

Self employment

As the Employment Rights Act comes into force, the insurance sector is well placed to support policyholders in adapting to the required changes

The Employment Rights Act 2025 was a piece of landmark legislation for the Labour government, reflecting many of its priorities and manifesto commitments to strengthen rights for workers and trade unions.

The act means that significant changes to UK employment law will come into force over the next two years. UK businesses will need to deal with trade unions having the right to physical and digital access. They will also have to implement new steps to prevent sexual harassment, as well as facing potential liability for the harassment of employees by third parties.

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