New employment regulations published ahead of April changes

The Government issued its enabling regulations for a number of the provisions of the Employment Rights Act 2025 which are due to come in force this month.

From 6 April, several key changes come into force:

  • The maximum protective awards for collective redundancies double from 90 to 180 days’ gross pay;
  • Sexual harassment will be a category of protected disclosure under whistleblowing law;
  • Trade union recognition procedures are simplified; and
  • Employers must now keep annual leave records for six years.

Additionally, from 7 April, we will see the arrival of the Fair Work Agency, a new enforcement body with broad powers, signalling a more interventionist approach to workplace rights.

So, what’s actually changed and who benefits?

The increase in protective awards is arguably the most immediately impactful change. Previously capped at 90 days’ pay, the rise to 180 days significantly raises the stakes for employers in large scale redundancies. This is not just symbolic. It materially increases potential liability, as well as litigation risk and settlement exposure. For employees, it is a clear win, offering stronger financial protection and greater leverage where consultation obligations are not properly followed. For employers, it is a clear warning. Collective consultation has always been important but it is now considerably more costly to get wrong.

Sexual harassment now sits within whistleblowing

Including sexual harassment within protected disclosures is a more subtle but potentially transformative change. Previously, harassment claims largely sat within discrimination law. By bringing them into whistleblowing, the Government is reframing these issues as matters of public interest, not just private grievance. This could encourage earlier reporting and give employees stronger protection against retaliation. It also increases legal complexity for employers, who now need to consider dual risk in the form of discrimination and whistleblowing claims.

The burden of compliance

Perhaps the most surprising change, and one that was not anticipated, is the six-year annual leave record requirement. While most employers already keep some form of annual leave records, this introduces a clear statutory obligation to retain them for a set period of time, aligning with the limitation periods for potential claims.

In practice, the issue is less about whether records exist, and more about whether they are sufficiently detailed, consistent, and accessible if challenged. It is a relatively low profile change, but one that could have real consequences where records are incomplete or cannot be produced.

Enter the Fair Work Agency

The creation of a central enforcement body is a clear signal that the Government is moving away from a purely complaint driven model towards active enforcement. Depending on how assertively it operates, this could shift the balance of power significantly, particularly for lower paid or vulnerable workers who may not otherwise bring claims.

Our view: this demonstrates the Government’s focus on fortifying the protections of workers and ensuring that employers remain accountable.

 

 

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If you have any questions about the topics raised in this article, please feel free to contact a member of the Employment & Immigration team.