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Government backs ERB after cabinet reshuffle
Following last week’s cabinet reshuffle, the government reaffirmed its commitment to fully implement the ERB. Although Angela Rayner, former Deputy Prime Minister, and Justin Madders, former minister responsible for employment rights, have stepped away from their roles, the government moved quickly to reassure unions that the Bill will not be ‘watered down’. The Independent quoted a government spokesperson who said the legislation had the “absolute backing” of the government. So, we anticipate that those Lords amendments which were not proposed by the government side before the summer break will be voted down.
In other ERB news, Susannah Donaldson, Partner and equality law expert, explores on Out-Law how the ERB will require large employers to take stronger action on gender pay inequality by publishing targeted gender pay gap action plans. This marks a significant cultural and reporting shift. Currently, employers do not have to publish action plans to address the gender pay gap. According to the ERB’s explanatory notes, only half of reporting employers have already chosen to do so. The government will introduce gender pay gap and menopause action plans on a voluntary basis in April 2026, before making them mandatory in 2027.
EHRC passes amended Services Code to government
“The judgment is the judgment". These were the words from Baroness Falkner, Chair of the EHRC, on Friday of last week as she referenced the Supreme Court’s decision in For Women Scotland when passing an updated Services Code of Practice to the government for approval. The updated “Code of Practice for public services, public functions, and associations" follows the Supreme Court’s ruling that sex in the Equality Act means “biological sex”. Once the government approves the draft code, it will go before Parliament for their review. Parliament will then have 40 days to review the Code and set a date for it to come into force.
What does this mean for UK employers? Kate Dodd, Partner and equality law expert, comments, “The Code relates to public services not employment, so may not be directly applicable to those who are not service providers. That said, Baroness Falkner confirmed the Code would include examples and advice to help service providers implement the Supreme Court’s ruling practically. We will have to watch this space to see how much use they will be in the employment context. In the meantime, Falkner's quote very much follows the approach taken by the EHRC so far - that the judgment is not going to change, and that service providers and employers should both continue to review their policies and update their practices in the meantime.”
New guidance aims to prevent anti-competitive recruitment
The Competition and Markets Authority published new guidance to help HR and recruitment professionals stay compliant with competition law. The CMA clarifies that competition law applies to agreements between employers about wages or working conditions, contrary to what it calls a common myth that it doesn’t. When businesses coordinate on salaries, benefits, or job terms, they risk breaching competition law. Just as companies compete for customers, they also compete for talent by offering better pay and perks. The guidance identifies three key types of anti-competitive behaviour in the labour market: no-poaching agreements, wage-fixing, and the exchange of competitively sensitive information. The CMA includes practical examples in the guide and HR and recruitment professionals will find it helpful to understand more about how competition law affects hiring and retention practices.
Online HR1 form accessible
The HR1 form (used to notify the Secretary of State about proposed collective redundancies) can now be completed digitally. The Insolvency Service launched its online submission version of the HR1 form which, as previously reported, will be required from 1 December.
This page is updated weekly with News and Views from that week’s employment weekly briefing email. For previous articles, please contact us: Employment Law Plus.
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Employment law horizon watching | Upcoming employment law changes