Wed 08 Oct 2025

Employment Law Round Up – October 2025

Our monthly round up of the employment law related news you may have missed.

Are fees for employment tribunals on their way back?

The Guardian newspaper has reported that the UK government is considering the reintroduction of fees for employment tribunals. According to the paper, "sources" say budget pressures and efforts to tackle an overwhelmed tribunal service have led to ministers considering reintroducing fees before the end of the current parliament. In 2024, the then Conservative government proposed a £55 fee for workers making an employment tribunal claim. Prior to that, fees introduced in 2013 were scrapped in 2017 after the Supreme Court ruled that the particular fee scheme in place was unlawful. It is expected that some measures to be introduced by the Employment Rights Bill will lead to the number of employment tribunal claims increasing, potentially considerably.

UK Government response to WEC report on paternity and shared parental leave

The UK Government has published its response to the Women and Equalities Committee ("WEC") report on paternity and shared parental leave ("the Report"). The Report set out the findings of a WEC inquiry and call for evidence earlier this year. The UK Government's response largely refers to the ongoing review of the whole parental leave and pay system, confirming many of the issues raised will be considered as part of that. Additional comments included an acknowledgement that making statutory maternity pay or paternity pay a "day one" right would raise "significant practical and financial challenges" for businesses. The response also confirmed an intention to avoid complexity and unintended burdens on business. The review, which opened in July 2025, is expected to last for 18 months.

Non-disclosure agreements

Section 17 of the Victims and Prisoners Act 2024 came into effect on 1 October 2025. This means any provision in an agreement (such as an NDA) is void if it prevents a victim of crime (or someone who reasonably believes that they are a victim of crime) from making a disclosure to a specified list of persons for specified purposes relating to the crime. The list of persons includes the police, lawyers, regulated professionals, victim support services and close family. This may be of relevance where, for example, an employee signs a settlement agreement after having been the victim of a crime (or where the employee reasonably believes they have been a victim of a crime) in the workplace. Ministry of Justice guidance for businesses on the changes has been updated to take account of the provision coming into force. It should be noted that the Act does not have effect in Scotland.

More generally, we can expect to see significant changes relating to the use of NDAs in the near future. Measures in the Employment Rights Bill will make void clauses in agreements preventing workers from disclosing information or making allegations about harassment or discrimination.

Three quarters of claimants using scheme set up to tackle non-payment by employers still not paid

The Employment Tribunal Penalty Enforcement and Naming Scheme was set up in 2016 to tackle non-payment by employers of tribunal awards and COT3 settlements. Over seven thousand workers have used the scheme, but a recent freedom of information request has found more than five thousand have still not received any payment. The most common reason cited for non-payment was insolvency of the employer. While some sums owed by insolvent employers may be paid, at least in part, by the Redundancy Payments Service, others, including awards for unfair dismissal and discrimination, are not covered.

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