Thu 02 Jul 2026

Employment Rights Act Update – July

Keep up to date with how the Employment Rights Act 2025 ("ERA 25") is progressing with our monthly update.

Prohibition of detriment for taking industrial action published

On 23 June, the UK Government published its response to the recent consultation on the prohibition of detriments for taking protected industrial action. The response confirmed that the Government intends to proceed with its preferred option of prohibiting all forms of detriment.

This was followed by the publication of the draft Protection Against Detriment (Industrial Action) Regulations 2026. These draft Regulations provide for protection from detriment where the sole or main purpose of the detriment is to prevent or deter a worker from taking part in protected industrial action, or to penalise the worker for doing so. The draft Regulations also confirm that a proportionate deduction from pay, where a worker takes industrial action, will not amount to a detriment. The draft Regulations also add a claim for breach of this protection to the list of claims that are subject to a potential 25% increase or decrease in compensation where there has been an unreasonable failure to follow a relevant statutory code of practice. The draft Regulations are expected to come into force on 30 October 2026, subject to Parliamentary approval.

Draft Code of Practice on electronic and workplace balloting and draft means of voting Order

The same draft Order, Trade Unions (Permissible Means of Voting) and Employment Rights (Unfair Dismissal) (Amendment) Order 2026, will introduce the legislative changes needed to enable electronic and workplace balloting for statutory trade union ballots. This includes ballots for industrial action. Currently, such ballots must take place by post. The new balloting arrangements are to be introduced in three phases. The first phase will introduce electronic and hybrid voting methods for industrial action ballots, union election ballots, union merger ballots and political fund or political resolution ballots. This will coincide with workplace voting being introduced for industrial action ballots. The UK Government intends to extend these arrangements to recognition and derecognition ballots in 2027.

The UK Government also published its response to the consultation on the draft Code of Practice on electronic and workplace balloting for statutory union ballots and laid a revised draft Code of Practice on electronic and workplace ballots for statutory trade union ballots before Parliament. The UK Government intends for the Code to be the principal source of practical guidance on the conduct of ballots as the new methods of voting are introduced. Several significant changes have been made to the revised Code, including the removal of guidance relating to recognition and derecognition ballots. References to "best practice" have also been removed following concerns that its inclusion could unintentionally raise minimum standards beyond what is legally required. The Code is expected to come into force in August 2026.

Government response to consultation on allocating tips and updated draft Code of Practice

Relatively speaking, the ERA 25 provisions on tipping have not attracted much attention. ERA 25 strengthens the tipping legislation introduced in 2024, which requires employers to pass qualifying tips on to workers and implement a written policy on tip allocation.

A consultation on potential improvements to the law and implementation of the new requirements took place in early 2026. The Government response to the consultation on strengthening the law on tipping was published alongside a Draft Revised Code of Practice on Fair and Transparent Distribution of Tips ("the draft Code") in June. The draft Code has been updated to reflect the new requirements introduced by ERA 25 regarding consultation and review of written policies. Consultation will be required with either trade union or employee representatives, or where neither exist, employees directly, when developing a tipping policy and whenever it is reviewed. Policies must be reviewed at least every three years. The draft Code is expected to come into effect in October 2026.

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