Employment law update: autumn 2025

This autumn has already seen several important developments in employment law for employers to note. From the latest progress on the Employment Rights Bill to the enforceability of NDAs and new guidance on gender equality and neonatal care leave, as well as potential changes to Employment Tribunal fees, this update highlights key changes and their practical implications.

A second autumn employment law update will be published shortly, focusing on recent case law developments from the Employment Tribunal.

Update on the Employment Rights Bill

On 15 September 2025, the Employment Rights Bill returned to the House of Commons to consider amendments proposed by the House of Lords, read here. 

As anticipated, the Commons rejected most of the Lords’ changes, reinstating key government proposals around unfair dismissal and zero-hours contracts. 

The Bill will return to the House of Lords on 28 October 2025. It is widely expected that the Lords will defer to the Government on its changes, given they relate to manifesto commitments. It is likely that Royal Assent will follow in early November 2025, with implementation of most major reforms set to be phased in from April 2026, as set out in the Government's implementation timetable. Given the scale of legislative change, it remains to be seen whether the Government will be able to adhere to this – notably, consultation on unfair dismissal, expected in "summer/autumn 2026", has yet to be launched. 

To support employers, we have created a dedicated Employment Rights Bill resource hub offering key information and guidance on the reforms. This page will be regularly updated as the situation develops.

Gender equality in the workplace

Over the summer, the Government published guidance for employers on improving gender equality at work. The guidance distinguishes between “effective” actions (which are supported by evidence) and “promising” actions that require further evaluation.

The report groups its recommended actions into four categories:

• Hiring and selection: Employers are encouraged to state salary ranges and whether they are negotiable. Research shows women are less likely to negotiate pay, and a lack of transparency can contribute to persistent pay gaps. Employers should ensure women are not penalised for negotiating pay, as they are statistically more likely to face backlash when they do.
• Talent management and development: Increasing transparency around promotion and pay decisions is an effective way to reduce bias. Employers should clearly communicate criteria for advancement and remuneration.
• Inclusion and retention: Improving workplace flexibility is recommended to challenge gender stereotypes around caregiving. All roles should be advertised as having specific flexible working options and senior leaders should model flexible working practices. Interestingly, the guidance highlighted that advertising flexible working options can increase applicant pools – by 19% to 30% on the job site Indeed, and by 50% at John Lewis. Promoting uptake of shared parental leave is also encouraged.
• Leadership and accountability: Employers should set internal gender equality targets that are specific, time-bound, realistic and publicly monitored.

The report advocates a data-driven approach, with evaluation of the effectiveness of measures before wider implementation.

Neonatal Care Leave and Pay

The Government has published technical guidance for employers on the operation of the new statutory right to neonatal care leave and pay, which came into force earlier this year. For a full overview, click here.

One area of complexity addressed in the guidance is how much neonatal care leave accrues in cases of multiple births. The guidance confirms that where more than one baby from the same pregnancy is admitted to neonatal care, and there is an overlap of seven or more continuous days, only one entitlement to Neonatal Care Leave and Pay is triggered. This entitlement is not duplicated for each baby. This approach ensures consistency but may require careful record-keeping and communication between employers and employees in cases where neonatal care spans multiple children and dates. 

The guidance also explains how neonatal care leave and pay interact with other types of statutory leave and pay, including maternity, adoption, shared parental and paternity leave. It sets out when a partner of a parent may qualify for leave, and clarifies the types of medical care that fall within the scope of neonatal care for eligibility purposes.

Employment Tribunal fees: a possible return?

At the start of October, the Guardian reported that the Government was considering reintroducing Employment Tribunal fees. This would mark a significant shift, following the Supreme Court’s landmark 2017 decision which unanimously declared the previous fee regime unlawful. According to the report, Ministers were exploring the possibility of reinstating fees, albeit at a much lower level, as part of efforts to relieve the pressure and financial burden on the Tribunal system.

Unsurprisingly, trade unions responded with anger to the news. Following this, Justice Secretary David Lammy issued a statement ruling out the change. He confirmed that "it will remain free to bring a case to an employment tribunal, ensuring everyone, no matter their means, can stand up for their rights at work".

While this seems to rule out the return of Tribunal fees for now, the issue continues to resurface periodically, so we continue to monitor developments and share updates as they emerge.

Restrictions on NDAs

A reminder that Section 17 of the Victims and Prisoners Act 2024 came into force on 1 October 2025, introducing statutory limits on the enforceability of non-disclosure agreements (NDAs). Under this provision, an NDA signed on or after that date is void to the extent it seeks to prevent a victim of crime – or someone who reasonably believes they are a victim – from disclosing information to certain individuals, such as law enforcement, legal advisers, victim support or close family. Full details here.

Many thanks to Bijou Kaye, current trainee in the team, for her help preparing this article.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, October 2025