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Employee Rights Act

Employment Rights Act Compliance: Common Risks for UK Businesses | HR Legal Guide

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✅ Thursday Blog

Employment Rights Act Compliance: Common Risks for UK Businesses

Despite the Employment Rights Act being long-established legislation, many employers still face issues due to non-compliance or outdated practices.

Small and growing businesses are particularly at risk if HR processes are not regularly reviewed.

Common Compliance Issues

Outdated or Missing Contracts
Failure to issue correct written statements can lead to legal penalties and disputes.

Poor Dismissal Procedures
Not following fair disciplinary or capability processes is one of the most common causes of tribunal claims.

Incorrect Redundancy Handling
Lack of consultation or incorrect redundancy payments can result in claims for unfair dismissal.

Unlawful Pay Deductions
Deductions made without contractual authority or consent can breach employee rights.

Inconsistent HR Practices
Treating employees differently without justification can lead to discrimination or unfair treatment claims.

How Employers Can Protect Their Business

To remain compliant with the Employment Rights Act, employers should:

  • Regularly review contracts and policies

  • Follow fair and documented procedures

  • Keep accurate HR records

  • Stay updated with legislative changes

  • Seek professional HR guidance when needed

Comment from Matthew Chilcott, Owner – Consensus HR

“Many employment issues arise not from intention, but from a lack of up-to-date processes and understanding of legal obligations. Regular HR reviews and clear procedures are key to preventing problems before they escalate.”

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Employment Rights Act

What the Employment Rights Act Means for Employees in 2026 and Beyond | UK Employment Law Guide

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✅ Wednesday Blog

What the Employment Rights Act Means for Employees in 2026 and Beyond

The Employment Rights Act continues to underpin many workplace rights in the UK. While new legislation and amendments develop over time, the ERA remains central to protecting employees’ fundamental employment rights.

Understanding these protections helps employees feel secure, treated fairly, and confident in the workplace.

Core Rights Employees Can Rely On

Under the Employment Rights Act, employees are entitled to:

Clear Terms of Employment
From their first day of work, employees must receive written details of their role, pay, working hours and other key conditions.

Fair Treatment in Dismissal
Employers must follow fair processes and have lawful reasons when ending employment.

Redundancy Pay Where Applicable
Eligible employees must receive statutory redundancy pay when their role is no longer required.

Minimum Notice Periods
Employees are protected by minimum notice requirements to ensure reasonable time to prepare for employment ending.

Protection from Unlawful Deductions
Pay cannot be deducted unless permitted by law, contract, or with employee agreement.

The Importance of Good HR Practices

While the law sets minimum standards, good HR management goes further by:

  • Ensuring transparent communication

  • Managing performance fairly

  • Supporting wellbeing

  • Handling disputes professionally

Strong HR processes help create trust and positive working relationships.

Comment from Matthew Chilcott, Owner – Consensus HR

“When employees understand their rights, it creates confidence and stability within the workplace. Clear contracts, fair treatment and open communication benefit both sides and contribute to a positive company culture.”

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Employment Rights Act

Understanding the New Employment Rights Act 2025: What It Is and Why It Matters

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🗓️ Blog Post — Tuesday

Understanding the New Employment Rights Act 2025: What It Is and Why It Matters

The Employment Rights Act 2025 has now become law in the UK, ushering in what many legal experts are describing as the most significant overhaul of employment rights in a generation.

So what’s changing?

✔️ Stronger dismissal protections — the qualifying period to claim unfair dismissal will reduce from two years to six months by early 2027, meaning more employees can bring claims and employers need to plan more carefully.
✔️ New day-one rights — paternity and ordinary parental leave, as well as statutory sick pay from day one of illness, are being introduced in 2026.
✔️ Fire-and-rehire restricted — dismissing and rehiring staff on worse terms will be treated as automatic unfair dismissal in most cases from October 2026.
✔️ Zero-hours protections — workers will get rights to guaranteed hours where appropriate and compensation if shifts are cancelled without reasonable notice.
✔️ Fair Work Agency — a new enforcement body is being established to ensure rights like holiday pay and sick pay are respected.

These changes are rolling out in phases through 2026 and 2027, so organisations need to plan now, not later.

Matthew Chilcott, Managing Director of Consensus HR, says:
“This isn’t just another employment law update — this is a pivot in how UK workplaces function. These reforms expand protections while challenging employers to refine policies, manage risk more proactively, and reinforce a culture of fairness.”

Why This Matters to You
For employers, staying compliant isn’t optional — these changes impact anything from contracts and dismissal practice to absence management and flexible working policies. For employees, it means earlier access to rights and greater workplace security.

👉 Consensus HR is here to help you interpret and implement these changes into your HR strategy with confidence and clarity.

Your Outsourced Human Resources (HR) Department.

For further information on any of the HR subjects we provide, please click the heading below:

Important Health & Safety Update | Consensus HR in Herts & Beds

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Employers must account for overtime in holiday pay calculations | Consensus HR – Herts, Beds

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Employers must account for overtime in holiday pay calculations | Consensus HR – Herts, Beds

Employers must take account of overtime when calculating holiday allowances for staff, according to a ruling by the Supreme Court. The ruling came in a case brought by the Police Service of Northern Ireland, which must now pay at least £30m in back pay to officers and civilian employees. The dispute arose after a change in rules meant that overtime and additional payments should be factored into holiday pay rates. Employment specialists warn that employers will no longer be able to use technical arguments to limit their liability for underpaid holiday pay claims. Jo Moseley, a member of Irwin Mitchell’s employment team, said: “Today’s ruling is of major significance and has the potential to cost UK businesses millions of pounds.”

 

The Times

The Guardian

Our HR comment:  Employers must account for overtime in holiday pay calculations | Consensus HR – Herts, Beds

Matthew P Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “This is an interesting case mentioned today in relation to when calculating and employees holiday pay and ensuring that overtime is also included.  Pay is an area we always get calls about and especially when a member of the team has left the business and is an area that an employee ca go to an Employment Tribunal from day one of employment if they believe they have monies owed to them.  This is called ‘Unauthorised deduction of wages’ and is covered under the Employment Rights Act 1996 section 13 – 13.Right not to suffer unauthorised deductions.

Employers must account for overtime in holiday pay calculations | Consensus HR – Herts, Beds

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If you employ a team and want to ensure that your business is working to best practice and the law and would like to have a non obligatory chat with us, give us a call now.
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Employers must account for overtime in holiday pay calculations | Consensus HR – Herts, Beds

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