The Employment Rights Act 2025 (ERA 2025) has rightly been described as one of the most significant overhauls of UK employment law in a generation. Most commentary has focused on the headline reforms: changes to unfair dismissal rights and qualifying service requirements, restrictions on zero-hours arrangements, and limits on the use of “fire and rehire” practices.

However, beneath these widely publicised changes sit a number of technical provisions that have received considerably less attention than the flagship reforms. For employers, HR professionals, and legal advisers, these quieter measures may ultimately prove just as important from an operational and compliance perspective.

Below are six underreported provisions within the ERA 2025 that organisations should ensure are firmly on their radar.

 

1. Six-year mandatory annual leave record keeping

One of the most significant but least discussed employer obligations was the introduction in April 2026 of a statutory duty for employers to keep records adequate to show compliance  for six years.

Examples of the records that employers may need to retain include, but are not limited to:

• Leave accrued
• Leave taken
• Leave carried over
• Holiday pay calculations
• Holiday pay payments
• Any payments in lieu of leave

Importantly, the Fair Work Agency (FWA) will have powers to inspect and enforce compliance with these requirements. Failure to maintain adequate records is a criminal offence punishable by a fine.  We’re already hearing stories confirming that the FWA is actively pursuing such matters.  Many organisations already hold some of this information, but the creation of a specific statutory record-keeping obligation represents a significant compliance shift.

2. Zero-hours contract protections extended to agency workers

Much has been written about the introduction of guaranteed hours and predictable working protections for workers engaged on zero-hours and low-hours contracts. Less attention has been paid to the extension of protections to agency workers.

This means that agency workers may also acquire rights linked to their actual working patterns, creating additional obligations and compliance considerations for both employment businesses and end-user organisations.

The practical implications may include:

• potential obligations to offer guaranteed hours based on established working patterns;
• greater coordination requirements between agencies and hirers in relation to compliance and record keeping;
• needing to review contractual obligations throughout labour supply chains; and
• increased workforce planning and cost considerations where organisations rely heavily on temporary labour.

For recruitment agencies, umbrella companies, and businesses heavily reliant on temporary labour, these reforms could create significant operational challenges and reduce some of the flexibility traditionally associated with temporary staffing models.

3. Powers concerning maritime employment conventions and a Mandatory Seafarer’s Charter

Buried within the ERA 2025 are two related but distinct sets of enabling provisions concerning maritime employment.

 

First, it gives the Secretary of State powers to make regulations implementing the Maritime Labour Convention 2006, the Work in Fishing Convention 2007 and other international agreements relating to maritime employment that have been ratified by the United Kingdom. These powers are intended to enable the UK to implement, and remain aligned with, its international obligations as those agreements develop.

 

Second, the Act creates a statutory framework through which the Government may introduce a Mandatory Seafarers’ Charter. This builds on the existing voluntary Seafarers’ Charter and the Seafarers’ Wages Act 2023. Regulations may establish minimum standards relating to matters such as:

 

• remuneration, including pay for work outside UK waters;
• maximum periods of work and minimum periods of rest;
• roster patterns and fatigue management;
• safety-related training; and
• other working conditions for seafarers on services within scope.

 

The detailed standards, the services to which they will apply and their commencement will be determined through secondary legislation. The framework is expected principally to affect operators of services calling frequently at UK ports. Harbour authorities may also have an enforcement role, including requesting compliance declarations and applying statutory port-access sanctions where the prescribed requirements are not met.

 

Although sector-specific, these provisions may have significant operational and financial consequences for ferry and other maritime operators, as well as businesses within the associated maritime supply chain. Organisations potentially within scope should monitor forthcoming regulations and implementation guidance closely.

 

Because these measures affect a relatively specialised sector, they have attracted limited attention outside maritime employment circles.

4. Removal of the statutory picket line supervisor requirement

Commentary on the ERA 2025’s trade union reforms has understandably focused on changes to industrial action  ballots  and the wider industrial relations framework.  Yet one less publicised change , which took effect on 18 February 2026, was the repeal of the statutory picket supervisor requirements  introduced by the Trade Union Act 2016.

The repeal means trade unions organising picketing are no longer legally required to:

• appoint a formal picket supervisor;
• provide contact details of the supervisor to the Police;
• provide the supervisor with a letter confirming that the picketing has been approved by the union; and
• require the supervisor to carry that letter and wear something identifying their role.

The change effectively returns the legal framework closer to its pre-2016 position while removing a number of administrative obligations that unions considered burdensome, although a union may still choose to appoint a supervisor. Wider rules governing picketing, such as picketing must be peaceful and must take place for a lawful purpose remain in effect. .

Although not as high profile as other trade union reforms, it represents a meaningful shift in the regulation of industrial action, as this change reduces the formal requirements placed on trade unions. Employers dealing with industrial action should ensure that their polices reflect the current framework.

5. Bereaved Partner’s Paternity Leave: up to 52 weeks of protected unpaid leave

Although introduced through separate legislation, this related family-leave reform forms part of the wider package of employment law changes taking effect alongside the ERA 2025 reforms.

While discussions around family-related rights have largely focused on day one paternity leave rights and statutory bereavement leave, another important change has received comparatively little attention.

From April 2026, eligible employees with protected unpaid leave where the child’s mother,  primary adopter or main intended parent dies on or after 6 April 2026 or during the child’s first year of life or placement.

This entitlement:

• is a  day one employment right;
• is available to eligible employers who have the main responsibility for caring for the child;
• provides up to 52 weeks of job-protected leave, although the amount available depends on when death occurs which must end by the child’s first birthday or the first anniversary of placement;
• means leave must be taking as one continuous period;
• covers births, adoptions and certain surrogacy arrangements; and
• is designed to support parents facing exceptionally difficult circumstances.

There is no statutory entitlement to pay during this leave, although employers may choose to provide contractual pay.

Although the circumstances in which the right applies will thankfully be rare, employers should ensure policies and procedures reflect this entitlement and that managers understand the eligibility and notice requirements.

6. The 80% Statutory Sick Pay rule for lower earners

Much of the discussion  surrounding Statutory Sick Pay (SSP) reform has focused on the removal of the Lower Earnings Limit, extending eligibility to many workers previously excluded from SSP entitlement.

What is less widely understood is how SSP will be calculated for some lower earners.

Under the new regime, some workers will not receive the standard SSP rate. Instead, SSP will be payable at: the lower of 80% of normal weekly earnings or the standard SSP rate.

This creates a more nuanced SSP calculation model and introduces additional payroll considerations. Employers may need to operate different calculations depending on an employees earnings and as a result, payroll systems, absence management procedures and employee communications will need to reflect the new entitlement rules. Failure to do so could lead to underpayments, payroll queries, and unnecessary employee relations issues, as well as potential claims for unlawful deduction from wages.

Why these provisions matter

The Employment Rights Act 2025 is far more than a collection of headline reforms. Some of its most significant practical effects arise from less-publicised provisions that:

• Introduce new record-keeping obligations;
• increase the scope of employment rights enforcement;
• create additional supply chain responsibilities;
• expand family-related protections;
• alter aspects of industrial relations law; and
• require payroll and HR process changes.

While many of these reforms may appear technical, their cumulative impact on employer compliance could be substantial.

Immediate employer actions

As implementation continues through 2026 and 2027, employers should consider taking the following steps:

• Review annual leave and holiday pay record-keeping arrangements.
• Audit contracts and processes involving agency workers.
• Update sickness absence and payroll procedures to reflect SSP reforms.
• Review family leave, bereavement, and compassionate leave policies.
• Brief HR and employee relations teams on industrial relations changes.
• Monitor forthcoming regulations, guidance, and FWA enforcement developments.
• Ensure employment law updates are not limited to headline reforms alone.

Final thoughts

The Employment Rights Act 2025 will be remembered for its major reforms to dismissal rights, zero-hours working, and employment protections. However, some of the most important compliance challenges may arise from provisions that have attracted far less attention.

For employers, understanding these underreported measures now may help avoid costly compliance gaps later. As further regulations and guidance emerge over the next two years, organisations that focus only on the headline changes risk overlooking obligations that could have a very real operational impact.

If you are looking for tailored advice or assistance on this or any other matter,  please contact Nicola Evans, partner, and head of our employment team, on (01482) 325242 or email nicola.evans@andrewjackson.co.uk