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October 2025 – Employment Rights Bill Update & Exciting News for Etherington HR

 

Peter Etherington
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Employment Update for Small Businesses
October 2025
Dear Subscriber

Eighteen years ago I set up Peter Etherington Employment Law Services as a one-man-band, but for the last 8 years I have run it with a team of colleagues, so I thought it was about time for a name change, to better reflect our true identity. Therefore, I am pleased to inform you that we will be changing very soon to Etherington HR Limited. So next time you receive this update it will hopefully be under a shiny new logo.

But back to what this newsletter is really all about – updating you on developments in HR and employment law. We have an update on the slow passage of the Employment Rights Bill through Parliament and a bit of employment law gossip – read on for more.
Please contact me if you would like to find out a bit more about any of the subjects raised in this update or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.
Regards
Peter Etherington
Tel: 01664 668164

www.etherington.co.uk

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Peter Etherington
Employment Rights Bill
Is it imminent?
The Bill continues to make its slow passage through Parliament. The House of Lords proposed a number of amendments which went back to the Commons for consideration. The Commons have rejected all the amendments proposed by the opposition parties but have accepted some that were proposed by Labour peers. Notably the amendment has been accepted that would make non-disclosure agreements (NDAs) unenforceable in employment contracts and settlement agreements (as I reported in August’s newsletter).

The proposed changes to the section on zero hours contracts (ZHCs) have been rejected as expected, so it seems likely that employers will have a duty in due course to offer guaranteed hours to those on ZHCs who regularly work some hours each week. More detail will be provided on how that will work in due course once the Bill passes into law.

The Bill has now gone back to the Lords who are likely to accept the amendments proposed by the Commons (and the rejection of their amendments), so the Bill may pass into law in early November. However, most elements of the Bill won’t become law for some time yet. We will keep you updated.
Employment Tribunal Fees
Are they set to return?
The Guardian reported on 1st October that the Government is “looking at reviving a proposal made by the last Conservative government to impose fees on employment tribunal claims”.

Fees were introduced in 2013 but abolished four years’ later after the Supreme Court ruled that the fees systems was unlawful. That decision was related to the level of fees and the Court did not rule out the possibility of a different fee system based on lower fees being permitted. £55 is being suggested as the level that could apply if they are reintroduced.

The tribunal service is struggling with the volume of claims currently, and has been for some years. It is not unusual now for tribunal hearings to be set 18 to 24 months after the claim has been received. The idea of introducing fees in 2013 was to try to reduce the level of claims as those who did not really have strong grounds for a claim would be put off chancing it. The speculation here is that the government is having similar thoughts but also looking at it as a way to raise revenue in a department that is struggling with its funding.

We will let you know if and when we hear any more.
National Minimum and Living Wage
The current National Living Wage and National Minimum Wage rates are:

  • £12.21 per hour for workers aged 21 and over
  • £10.00 per hour for workers aged 18 to 20
  • £7.55 per hour for workers aged 16 and 17; and for apprentices under 19 and those over 19 in their first year*

*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age.
www.etherington.co.uk