Intelligence

As AI tools become increasingly prevalent in workplace communications, employers are encountering a new challenge: grievances and appeals that appear to be drafted or heavily influenced by artificial intelligence. While these tools can help employees articulate their concerns more effectively, they also introduce practical complications for HR departments and management teams attempting to respond appropriately.

The Employment Rights Act 2025 is set to bring significant reforms to employment law, with a number of these changes already being implemented. One important proposal, set to be introduced in 2027, concerns the consultation obligations that arise during collective redundancy exercises.

Significant changes to harassment law are expected to come into force on 30 October 2026 under the Employment Rights Act 2025, requiring employers to take all reasonable steps to prevent sexual harassment and reintroducing third-party harassment liability. These reforms represent a substantial shift from a reactive approach to a proactive one, with employers expected to identify and address harassment risks before complaints arise. Failure to comply may expose employers to increased liability, greater scrut

The Fair Work Agency represents a fundamental shift in UK employment law enforcement, consolidating powers previously held by multiple bodies under a single framework. With enhanced investigative capabilities, significant financial penalties, and the authority to pursue claims on behalf of workers, the FWA introduces a more proactive enforcement regime that will expand to cover holiday pay, statutory sick pay, and other employment rights.

The Employment Rights Act 2025 has doubled the limitation period for Employment Tribunal claims from three months to six months, effective October 1, 2026. This procedural change affects unfair dismissal, discrimination, and wage deduction claims, fundamentally altering the litigation landscape for both employers and employees. Understanding the practical implications of this extended timeframe is crucial for managing workplace disputes and evidence retention.

The FCA's new non-financial misconduct rules and the Employment Rights Act 2025 create dual regulatory and employment obligations for financial services firms to prevent sexual harassment, including by third parties. The recent Odey tribunal decision demonstrates how harassment failings can trigger both conduct sanctions and senior manager accountability, making robust prevention measures essential.