Asbestos remains the leading cause of work-related deaths, with around 5,000 fatalities each year linked to past exposure. Despite being banned in 1999, asbestos-containing materials (ACMs) remain present in many buildings constructed before 2000. For organisations responsible for non-domestic premises, effective asbestos management remains a legal requirement under health and safety law, supported by ongoing regulatory oversight. The HSE provides official guidance on the duty to manage asbestos in buildings, including who has the duty and what practical steps are expected from dutyholders: HSE duty to manage asbestos guidance. Legal Requirements The Control of Asbestos Regulations 2012 establish the legal framework for asbestos management. Regulation 4 sets out the duty to manage asbestos in non-domestic premises and common parts of certain domestic premises: Control of Asbestos Regulations 2012, Regulation 4. Under Regulation 4, responsibility rests with the dutyholder—typically the individual or organisation responsible for the maintenance and repair of a non-domestic property. In practical terms, dutyholders must: This includes maintaining an accurate asbestos register, implementing a clear and effective management plan, and ensuring that relevant information is provided to anyone who may come into contact with asbestos. Importantly, this duty is ongoing. It requires regular review of both the condition of ACMs (Asbestos-Containing Materials) and the effectiveness of control measures to ensure risks remain adequately controlled over time. Current HSE Activity and Direction In January 2024, the Health and Safety Executive (HSE) launched its “Asbestos – Your Duty” campaign to raise awareness among those responsible for buildings where asbestos may be present: HSE Asbestos – Your Duty campaign announcement. While the campaign did not introduce new legal requirements, it has increased focus on compliance across both the public and private sectors. Additionally, the HSE conducted a consultation between November 2025 and January 2026 to explore potential improvements to the practical operation of current regulations. Key areas of focus included: These developments indicate a continued emphasis on improving standards of asbestos management, rather than signalling fundamental changes to the legal framework. Inspections and Enforcement HSE inspectors may carry out inspections to assess compliance with asbestos regulations. These inspections may take place with or without prior notice. Where shortcomings are identified, enforcement action may include: Dutyholders should ensure they can demonstrate that asbestos risks are being effectively managed in practice, not only documented. Common Areas of Non-Compliance A number of recurring issues are regularly identified during inspections. These tend to relate not to a lack of awareness of the rules, but to gaps in implementation. For example, asbestos registers may not reflect recent building changes, or management plans may exist but are not actively used to guide decision-making. Similarly, organisations sometimes fall short in communicating asbestos information to contractors or ensuring that routine monitoring is consistently recorded. These are practical shortcomings rather than complex legal failures, but they can still expose organisations to unnecessary risk. Practical Steps for Dutyholders If your organisation is responsible for a building constructed before 2000, maintaining compliance with asbestos regulations relies on having accurate information and applying it consistently in practice. Rather than treating asbestos management as a one-off exercise, dutyholders are expected to keep arrangements under regular review and ensure they reflect current conditions within the building. Review Asbestos Surveys Dutyholders should ensure that an appropriate asbestos survey is in place. Where no survey exists, or where existing information is unreliable due to structural or usage changes, a new survey should be commissioned. Surveys must be carried out by competent professionals in accordance with recognised standards, as their quality underpins all subsequent management decisions. Update the Asbestos Register and Management Plan Accurate and up-to-date records are essential. The asbestos register should reflect the current location and condition of all identified materials, incorporating any changes resulting from refurbishment or maintenance work. The management plan should clearly outline: In practice, this includes ensuring that contractors and maintenance personnel have access to asbestos information prior to commencing work. Ensure Appropriate Training Training is critical to consistent implementation of safe working practices. Individuals who may encounter asbestos should receive asbestos awareness training, enabling them to: It is important to note that such training does not qualify individuals to undertake work on or with asbestos materials. Where activities involve disturbance, removal, or higher risk exposure, these must only be carried out by suitably competent contractors and, where required, those holding the appropriate HSE licence. Schedule Regular Condition Monitoring Ongoing monitoring is necessary to ensure that asbestos-containing materials remain in a stable condition. The frequency of inspections will depend on factors such as the type of material and its location, and should be defined within the asbestos management plan. In practice, many organisations carry out periodic visual inspections supported by clear record keeping. This allows any changes in condition to be identified at an early stage and ensures that appropriate action can be taken where necessary. Maintaining consistent records also helps demonstrate that asbestos risks are being actively managed rather than assumed to remain unchanged. Plan for Changes and Refurbishment Works Buildings are rarely static environments, and any changes to their structure or use may affect asbestos risk. Before undertaking refurbishment, maintenance, or demolition works, dutyholders should ensure that a suitable refurbishment and demolition (R&D) survey has been carried out. Relying solely on an existing management survey in these circumstances may be insufficient, as it does not account for hidden materials that could be disturbed during intrusive work. Forward planning in this way helps prevent unexpected exposure, project delays, and potential enforcement action. How The Infinity Group Can Help Keeping up to date with health and safety requirements is an essential aspect of maintaining compliance, particularly in areas such as asbestos, where guidance, expectations, and regulatory focus may evolve over time. The Infinity Group supports organisations by providing regular updates and insights on health and safety topics, helping employers, landlords, and dutyholders remain informed of relevant developments. By offering clear and practical commentary on key health and safety issues, we aim to support organisations in understanding their responsibilities and maintaining awareness of current expectations.
Fire and Rehire Is Changing in January 2027: Here Is What Employers Need to Know
For many employers, “fire and rehire” has never been a preferred route — but its presence in the background has often shaped negotiations when agreement proved difficult. That is about to change. From 1 January 2027, the Employment Rights Act 2025 will significantly restrict the use of dismissal and re-engagement. In practice, it will render the approach automatically unfair in most cases where it is used to force through key contractual changes, marking a notable shift in the balance between employer flexibility and employee protection. With that deadline now fixed, the question is no longer if this will affect employers — but when and how. What Fire and Rehire Actually Is The practice is straightforward in concept. An employer seeks to change employment terms, but the employee does not agree. Rather than allowing the situation to remain at a standstill, the employer terminates the existing contract and offers re-engagement on revised terms, effectively leaving the employee with a choice between accepting the new conditions or leaving the organisation. Although simple in structure, the practice has become increasingly controversial. Public attention intensified in 2022, when P&O Ferries dismissed nearly 800 employees without notice and replaced them with agency workers on lower rates of pay. That episode brought “fire and rehire” sharply into the public spotlight and accelerated calls for legislative reform, transforming what had been a relatively niche HR practice into a matter of wider political and legal significance. In response, the previous government introduced a statutory Code of Practice on dismissal and re-engagement, requiring employers to engage in meaningful consultation and to treat dismissal strictly as a last resort. However, even with these safeguards in place, the practice has remained lawful where supported by a sound business rationale and a fair process. That position is set to change from January 2027. What Is Actually Changing The Employment Rights Act 2025 does not introduce a complete ban on fire and rehire. While earlier proposals suggested a broader prohibition, the legislation ultimately adopts a more targeted approach. Instead, it imposes a significant restriction: in most circumstances, it will be automatically unfair to dismiss an employee in order to impose certain contractual changes through fire and rehire, referred to as “restricted variations”. From 1 January 2027, a dismissal will be automatically unfair where: What counts as “restricted variations”? These are changes to core terms and conditions of employment, including: These are precisely the types of changes employers have historically sought to introduce using fire and rehire when agreement could not be reached. Under the new framework, using fire and rehire for these purposes will, in most cases, result in an automatically unfair dismissal, with no qualifying period of service required. The exception: serious financial difficulty There is a limited statutory exception where fire and rehire may still be used without resulting in automatic unfair dismissal. To rely on this, an employer must demonstrate that: This sets a deliberately high threshold. General commercial pressures, cost-saving exercises, or a desire to improve profitability will not be sufficient. Even where this exception may apply, employment tribunals will still assess whether the employer has acted reasonably, including whether it has complied with obligations to inform and consult with employees (and, where applicable, recognised trade unions or employee representatives). Further clarification is expected through an updated Acas Code of Practice on fire and rehire, which will provide practical guidance on how employers should approach these situation What This Means in Practice Until the new rules take effect, dismissal and re-engagement remains lawful (though high risk) where: From January 2027, however, the use of dismissal to impose changes to restricted terms will be severely constrained. Organisations considering contractual changes should therefore be aware that the window to act under the current framework is closing. Practical Steps for Employers 1. Review employment contracts Identify which terms may fall within the definition of restricted variations and assess the robustness of existing variation clauses. 2. Document business rationale contemporaneously Where financial pressures exist, ensure evidence is recorded at the time. Retrospective justification is unlikely to carry weight. 3. Strengthen consultation processes Tribunals will increasingly scrutinise whether all reasonable alternatives were explored before any dismissal decision. 4. Train managers and HR teams Ensure those responsible for employee relations understand that dismissal and re-engagement will no longer be a viable fallback option in most cases. How The Infinity Group Can Help At The Infinity Group, we support organisations in understanding their obligations under the Employment Rights Act 2025 and in developing practical, compliant frameworks to meet them. We also provide ongoing legislative updates to ensure your approach remains robust and up to date. Through our umbrella solutions, we can assume full employer responsibility, acting as the legal employer on your behalf and helping to reduce both administrative and legal risk while maintaining full compliance.For organisations seeking a more straightforward and secure approach to the upcoming changes, outsourcing employer responsibility to our team offers a confident way forward. Get in touch today to discuss how we can support your organisation. Subscribe to Our Newsletter for Weekly Updates!
Why Workplace Wellbeing Must Be a Business Priority This May
Each May provides an opportunity for organisations across the UK to reflect on an increasingly important issue: mental health in the workplace. While awareness campaigns encourage open dialogue, many businesses have yet to fully embed these conversations into everyday working life. Mental health is no longer a peripheral concern. It is a core component of organisational performance. The Health and Safety Executive (HSE) reports that stress, anxiety, and depression account for over half of all working days lost in Great Britain each year—highlighting a significant impact on productivity, employee engagement, and overall business performance. For employers, the message is clear: supporting employee wellbeing is not optional. It is fundamental to building a resilient, sustainable organisation. Why Mental Health at Work Matters Mental health is complex and dynamic. Employees experience fluctuations in wellbeing influenced by professional demands, personal circumstances, and workplace culture. As a result, challenges are not always visible. High-performing individuals may quietly struggle with stress, burnout, or anxiety. Without the right environment and support, these challenges can escalate, affecting not only the individual but also team performance and morale. Some of the most common workplace pressures include: Left unaddressed, these factors can lead to increased absence, reduced productivity, and long-term organisational risk. Wellbeing as a Strategic Priority Organisations that take a proactive approach to mental health consistently see measurable benefits. These include: Conversely, failing to prioritise wellbeing can result in declining morale, increased turnover, and potential legal implications if responsibilities are not met. Ultimately, workplace wellbeing is not just an HR initiative—it is a business strategy. Building a Mentally Healthy Workplace Creating a supportive workplace does not require immediate large-scale transformation. It begins with deliberate, consistent actions: 1. Leadership and Culture Change starts at the top. When leaders normalise conversations about wellbeing and model healthy working practices, they set the standard for the wider organisation. 2. Policies and Frameworks Well-defined policies around mental health, absence, and flexible working provide clarity and reassurance. These should be actively communicated and regularly reviewed to remain effective. 3. Access to Support Offering resources such as Employee Assistance Programmes, occupational health services, or external support organisations ensures employees have access to help when needed. 4. Managing Workload Unrealistic expectations and excessive workloads are key contributors to stress. Regular reviews and clear role definitions help maintain a healthier balance. 5. Using Data Effectively Monitoring absence trends, engagement levels, and feedback enables organisations to identify issues early and take informed action. How The Infinity Group Can Help At The Infinity Group, our focus goes beyond compliance. We share practical insights to help businesses navigate employee wellbeing, complex workplace challenges, and organisational change—supporting stronger performance and better outcomes. Subscribe to Our Newsletter for Weekly Updates!
Equality Action Plans Are Now Mandatory: What Employers with 250 or More Staff Must Know
Gender pay gap reporting has been a statutory requirement for large employers since 2017. While the annual publication of these figures is now well established, organisations have engaged with the underlying causes to varying degrees. This position is now evolving. Under the Employment Rights Act 2025, employers with 250 or more employees will be expected to move beyond the reporting of data and introduce equality action plans. These plans will set out the practical steps being taken to reduce gender pay disparities and provide appropriate support to employees experiencing menopause. The publication of figures alone, without clear context or demonstrable action, will no longer be sufficient. From April 2026, employers are encouraged to publish action plans on a voluntary basis. This is expected to become a mandatory requirement from April 2027, subject to final regulations. The interim period provides employers with a valuable opportunity to prepare effectively and adopt a considered, strategic approach, rather than treating this as a purely compliance-driven exercise. What Has Actually Changed Under the current framework, employers are required to publish six gender pay gap metrics annually: mean and median hourly pay gaps, mean and median bonus gaps, the proportion of men and women receiving bonuses, and the distribution of employees across four pay quartiles. Crucially, the existing regime does not mandate any form of corrective action. The forthcoming changes mark a clear shift from passive disclosure towards active accountability, requiring employers to articulate the steps they intend to take in response to their data. The implementation timetable has been deliberately phased. Employers may begin publishing action plans voluntarily from April 2026. The requirement is expected to become mandatory from spring 2027, with the first compulsory publications likely due by April 2028. This phased approach is intended to allow organisations sufficient time to develop considered and credible plans, rather than responding reactively. What an Equality Action Plan Is Expected to Include Equality action plans will be published alongside annual gender pay gap reports via the existing government reporting portal. Based on current government guidance, each plan is expected to include, as a minimum: Employers are strongly encouraged to go beyond these minimum expectations and treat the process as an opportunity to demonstrate a genuine and sustained commitment to workplace equality. Guidance issued in March 2026 outlines a series of evidence-based actions grouped across five broad categories: recruitment, career development and progression, organisational diversity, transparency, and support for employees experiencing menopause and other health conditions. While employers are not confined to these measures, they provide a useful and credible framework. Action plans are also expected to be endorsed at senior leadership level, consistent with existing requirements for gender pay gap reporting. Responsibility for these plans should not sit solely within HR; visible leadership accountability will be critical. Employees, investors and clients alike will distinguish between plans that reflect substantive commitment and those that do not. Why the Menopause Requirement Warrants Particular Attention Support for menopause has evolved from a peripheral wellbeing issue into a recognised employment law concern, with recent tribunal cases reflecting a growing body of risk in this area. It is estimated that one in ten women has left employment due to menopause-related symptoms, representing a significant loss of experience and organisational knowledge. While menopause itself is not a protected characteristic under the Equality Act 2010, its effects may fall within the scope of disability where they have a substantial and long-term impact on day-to-day activities. This can give rise to obligations on employers, including the duty to make reasonable adjustments. The new action plan requirement does not replace these existing legal obligations. Rather, it operates alongside them, increasing transparency and reinforcing accountability. Employers are expected to demonstrate, in practical terms, how they are addressing these issues. It is also important to recognise that menopause is not experienced uniformly. Employees with additional health conditions or from different backgrounds may require different forms of support. A standardised or generic approach is unlikely to be effective. The Wider Legislative Direction The introduction of equality action plans forms part of a broader shift in the approach to workplace equality. The government has also indicated its intention to extend pay gap reporting to cover ethnicity and disability under the proposed Equality (Race and Disability) Bill. Taken together, these developments signal a move away from a narrow focus on transparency towards a more comprehensive framework of accountability. Organisations that have historically treated gender pay gap reporting as a compliance exercise may find themselves increasingly exposed as expectations continue to evolve. What Employers Should Do Now The voluntary period between 2026 and 2027 should be used strategically. Publishing an initial action plan during this time can demonstrate commitment, build stakeholder confidence, and allow organisations to refine their approach ahead of the mandatory requirement. The starting point should be robust analysis. The six reported metrics provide an overview, but they do not explain the underlying causes. Employers should examine workforce composition, progression pathways, and structural factors such as working patterns and caring responsibilities. From there, organisations should: For employers who do not yet have a formal menopause support framework in place, this should be treated as a priority during 2026 rather than deferred until mandatory reporting takes effect. How The Infinity Group Can Support Your Organisation Equality action plans represent a significant shift in expectation. Employers are no longer asked simply to report data, but to demonstrate clearly how they intend to address it. Achieving this requires careful analysis, meaningful employee engagement, and visible commitment at senior leadership level. At The Infinity Group, we support organisations in understanding their obligations under the Employment Rights Act 2025 and developing practical, credible frameworks to meet them. Subscribe to Our Newsletter for Weekly Updates!
Unfair Dismissal Rules Are Changing: What Employers Need to Know
Unfair dismissal law has operated on broadly the same foundations for decades. In most cases, employees have been required to accrue two years’ continuous service before becoming eligible to bring an ordinary unfair dismissal claim. This gave employers more flexibility to assess new employees, manage performance or conduct issues, and end employment where necessary before full legal protections applied. This is now changing. The Employment Rights Act 2025 introduces significant reforms to the unfair dismissal regime, including reducing the qualifying period from two years to six months and removing the statutory cap on compensatory awards. These changes are expected to be implemented progressively throughout 2026 and 2027. Employers should therefore begin reviewing their policies, procedures, and management practices now to ensure they are prepared for the revised legal framework. The Current Legal Framework Before turning to the forthcoming reforms, it is helpful to briefly outline the current legal position. At present, an employee must have two years’ continuous service to bring an ordinary unfair dismissal claim. Once that threshold is met, the employer must be able to demonstrate a potentially fair reason for dismissal, falling within one of five recognised categories: However, establishing a potentially fair reason for dismissal is not sufficient on its own. Employers must also follow a fair procedure and demonstrate that the decision to dismiss was reasonable in the circumstances. If the employer fails in any of these areas—reason, procedure, or overall fairness—the dismissal may be found unfair by an employment tribunal. In addition, certain dismissals are treated as automatically unfair, meaning that no minimum period of service is required in order to bring a claim. This includes dismissals connected with pregnancy or maternity, whistleblowing, or trade union activities. These day-one protections are not affected by the Employment Rights Act 2025 reforms, although the wider legal framework continues to be more nuanced than is often assumed. The Key Changes Employers Must Understand Reduction of the qualifying period to six months The most significant change is the reduction of the qualifying period for ordinary unfair dismissal from two years to six months, expected to take effect in 2027. Earlier proposals suggested the introduction of day-one protection, but this was scaled back following consultation with employers. Nevertheless, a six-month threshold represents a substantial shift and materially alters the risk profile associated with managing new employees. For businesses that previously relied on the two-year period to deal with concerns more flexibly, this change will require more than just updated procedures. Employers will also need to change their overall approach. Performance, conduct, or capability issues that may once have been handled informally or through an early exit are now more likely to require a formal and properly documented process once an employee reaches six months of service. Future changes require primary legislation A less widely discussed, but still important, part of the reforms is the removal of the government’s ability to change the qualifying period through secondary legislation. Under the current system, the qualifying period can be changed relatively quickly through regulations. The Employment Rights Act 2025 removes this option, meaning any future changes will require a full Act of Parliament and greater parliamentary scrutiny. In practice, this means the new six-month qualifying period is likely to become a long-term part of UK employment law rather than something that can easily be changed in the future. Removal of the compensatory award cap At present, the compensatory award for unfair dismissal is capped at the lower of 52 weeks’ gross pay or £118,223. The Employment Rights Act 2025 removes this cap entirely. This reform has important implications, particularly in relation to higher-earning employees. In the absence of a statutory cap, tribunals will be able to assess compensation by reference to the claimant’s actual financial loss, subject to established principles such as mitigation. As a result, the potential financial exposure associated with unfair dismissal claims is likely to increase, and employers may see a corresponding impact on settlement discussions and litigation strategy, particularly in senior-level exits. Extension of tribunal time limits to six months Under the current regime, most employment tribunal claims, including unfair dismissal, must be brought within three months of the effective date of termination subject to the ACAS Early Conciliation process. The Employment Rights Act 2025 will extend this time limit to six months, with implementation expected from October 2026. This change will lengthen the period during which claims can be brought and, consequently, the period during which employers must be prepared to defend them. It is therefore advisable to review document retention practices to ensure that relevant evidence, including correspondence and records of decision-making, is preserved for an appropriate duration. No statutory probationary period During the development of the legislation, proposals were considered for a statutory probationary framework alongside the reduced qualifying period for unfair dismissal claims. However, these proposals were not included in the final legislation. Employers will continue to retain discretion in setting contractual probationary periods. However, ordinary unfair dismissal protection will apply once an employee reaches six months’ continuous service, regardless of whether a longer contractual probation period remains in place. This increases the importance of managing probationary periods effectively. A structured approach — including clear expectations, regular review meetings, documented feedback, and defined assessment points — will place employers in the strongest position to make informed decisions before statutory protection applies. What Employers Should Be Doing Now Although the majority of these reforms are not expected to take effect until 2027, the intervening period should be used constructively. Employers that are best prepared will be those that have already reviewed their processes, trained their managers, and updated their documentation in advance of implementation. Recruitment and onboarding Employers should consider strengthening pre-employment screening and onboarding processes to reduce the likelihood of unsuitable appointments progressing beyond six months’ service. Early identification of performance or conduct concerns is important. Where issues arise, they should be addressed promptly and supported by appropriate documentation, enabling more effective decision-making at an early stage. Probationary period design Existing probationary arrangements
LP Reforms in 2026: How to Prepare Your Partnership for New Compliance Rules
Limited partnerships have historically occupied a relatively distinct position within the corporate framework. In comparison with private limited companies, they have been subject to lighter reporting obligations and more limited scrutiny by Companies House. That position is now set to change. The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduces a fundamental shift in how UK limited partnerships are regulated. With implementation expected in 2026, these reforms will bring LPs firmly into the modern corporate transparency regime While implementation is being phased, the provisions affecting limited partnerships are expected to come into force during 2026, subject to secondary legislation. Businesses that defer consideration of these changes until formal commencement risk encountering avoidable compliance challenges. Policy Context The reforms form part of a broader legislative framework aimed at strengthening the integrity of the corporate register. Historically, limited partnerships have been identified as presenting elevated risk in certain contexts, owing to: The ECCTA seeks to address these issues by enhancing transparency, improving data reliability, and equipping Companies House with more robust supervisory and enforcement powers. For compliant and well-governed structures, the implications are largely procedural. For others, the changes may necessitate a more fundamental reassessment of governance and reporting arrangements. Core Operational Changes Filings via Authorised Corporate Service Providers A central feature of the new regime is the requirement that most filings in respect of a limited partnership must be made either directly by verified individuals or via an Authorised Corporate Service Provider (ACSP). An ACSP must be: Filings that do not meet verification or regulatory requirements may be rejected. This represents a material change for partnerships that have historically managed filings internally. Early engagement with an appropriate ACSP is therefore advisable. Where the general partner is a corporate entity, the partnership will also be required to appoint a named individual (for example, a managing officer or equivalent) whose identity must be verified in accordance with the new regime. Introduction of Annual Confirmation Statements Limited partnerships are expected to be required, for the first time, to submit an annual confirmation statement to Companies House. This statement is expected to: This represents a clear departure from the historically limited ongoing obligations applicable to many LPs and will need to be incorporated into annual compliance processes. Registered Office Requirements The reforms introduce stricter rules in relation to registered office addresses. Each limited partnership will be required to: Partnerships relying on legacy arrangements—particularly those using addresses outside their jurisdiction of registration—should review their position as a matter of priority. Enhanced Transparency and Ongoing Reporting The ECCTA also introduces more detailed disclosure obligations regarding partners and control. In particular: This represents a material evolution in compliance expectations, necessitating more robust internal processes to identify, monitor, and report changes as they arise. Enforcement and Regulatory Approach The ECCTA is accompanied by a substantive expansion in the powers available to Companies House. These powers include the ability to reject or query filings, require clarification of information, and remove or amend data held on the register. In addition, the Registrar will have the authority to deregister limited partnerships in defined circumstances, including failure to comply with statutory requirements. Implications for Advisers and Agents The reforms also have direct consequences for professional advisers. From implementation: How The Infinity Group Can Help At The Infinity Group, we provide accountancy and tax advisory services alongside practical regulatory compliance support, helping businesses navigate the changes introduced under the ECCTA with confidence. Under the new regime, only registered Authorised Corporate Service Providers (ACSPs) will be permitted to submit filings on behalf of limited partnerships where acting in that capacity. As a registered ACSP, and under full AML supervision, we are authorised to act on behalf of our clients in line with the new Companies House requirements. Our approach helps ensure that clients are not only compliant at the point of implementation, but are also well positioned to meet their obligations on an ongoing basis as the regime continues to develop. Subscribe to Our Newsletter for Weekly Updates!
Employment Rights Act: What the New Zero‑Hours Rules Mean for Employers
Collective Redundancy and Protective Awards: Key Changes in 2026
When an employer proposes to make 20 or more employees redundant within a 90‑day period, the employment law imposes significant statutory obligations. Employers must undertake a formal collective consultation process in addition to issuing individual notices of dismissal. Failure to comply with these obligations can result in substantial financial liability. Recent reforms introduce a material increase in the potential level of protective awards from April 2026, making compliance more critical than ever. Employers should ensure their redundancy processes are robust, compliant, and correctly implemented. What Is a Protective Award? A protective award is a financial penalty imposed by an Employment Tribunal where an employer fails to comply with its statutory collective consultation duties. It is not compensation for unfair dismissal, but a penalty for failing to follow the legally prescribed consultation procedure. Collective consultation duties arise where an employer proposes to dismiss as redundant 20 or more employees at one establishment within a 90‑day period. Where the threshold is met, employers must: Under the previous legislation, failure to comply may result in a protective award of up to 90 days’ gross pay per affected employee. The Change Effective from 6 April 2026 Under reforms introduced by the Employment Rights Act 2025, the maximum protective award has increased. From 6 April 2026, an Employment Tribunal may award up to 180 days’ gross pay per affected employee where an employer has failed to comply with its collective consultation obligations. This represents a significant increase from the previous maximum of 90 days under the Trade Union and Labour Relations (Consolidation) Act 1992. Key points for employers: For higher‑paid employees or large‑scale redundancies, the aggregate financial exposure can be considerable. Why Employers Get This Wrong Most collective consultation failures are not deliberate. They typically arise from misunderstandings of the statutory framework or from treating consultation as a procedural exercise rather than a meaningful process. The 20-employee threshold A frequent misconception is that the threshold applies across the entire organisation. In law, the test applies to each “establishment”, which is usually a specific workplace or operational unit. For employers operating across multiple sites, the analysis must be undertaken separately for each location. The definition of “establishment” can be complex and is often misunderstood. Meaningful consultation Consultation must begin before any final decision is made and must be undertaken with a genuine intention of reaching agreement. Informing representatives that redundancies have already been decided is insufficient and exposes employers to serious risk. Timing of Consultation Where the threshold is met, consultation must start in good time and at least: This process must be completed before any notices of dismissal are issued. Employers operating under commercial pressure should initiate HR1 notifications and representative elections as early as possible. What Employers Should Do Now With the increased protective award regime in force from 6 April 2026, employers contemplating restructuring or headcount reduction should take a proactive approach. Review Existing Redundancy Procedures Audit current policies, templates, and timelines to ensure they fully reflect statutory collective consultation requirements. Processes that have not been reviewed recently should be updated. Train HR Teams and Line Managers Those responsible for managing redundancies must understand not only the procedural steps but also how Tribunals assess substance, intent, and engagement. A purely mechanical approach is unlikely to mitigate risk. Maintain Comprehensive Records Employers should retain clear contemporaneous records, including: This documentation is often decisive in Tribunal proceedings. Take Advice at an Early Stage Errors made at the outset of a redundancy programme are difficult to rectify later. Early HR or legal advice can materially reduce exposure and ensure compliance from the start. Consider the Wider Employment Law Landscape The increase in protective awards forms part of a wider package of reforms under the Employment Rights Act 2025, affecting dismissal practices, trade union engagement, and worker protections more broadly. Employers who take a coordinated, compliance‑led approach will be better positioned to manage ongoing risk. What Is Coming Beyond April 2026 The protective award reforms are part of a broader programme of employment law change taking effect during 2026 and beyond. These include measures affecting: The direction of travel is clear: increased statutory obligations and increased financial exposure for employers who fail to comply. Staying compliant requires more than periodic policy reviews. Employers should adopt a structured, ongoing approach supported by training, governance, and regular process review. How The Infinity Group Can Help At The Infinity Group, our services go beyond payroll to include keeping clients informed of key employment law developments, including reforms affecting redundancy and collective consultation. We provide clear, practical insights into legislative change, including the implications of the Employment Rights Act 2025, helping employers understand how these developments impact operational and financial risk. Our aim is to help businesses maintain compliance, implement processes correctly, and understand the practical impact of these changes on their operations. Subscribe to Our Newsletter for Weekly Updates!
Industrial Action in 2026: Employers are not permitted to compel employees to work during a lawful strike
Employers may previously have been familiar with the rules concerning minimum service levels during industrial action. The Strikes (Minimum Service Levels) Act 2023 was repealed with effect from 18 December 2025 under the Employment Rights Act 2025. As a result, employers no longer have the statutory power to issue work notices or compel employees to work during lawful industrial action. There is no longer any legal mechanism by which employers can require employees to attend work during a lawful strike. What the Previous Framework Allowed The Strikes (Minimum Service Levels) Act 2023 established a framework allowing the government to set minimum service levels in certain sectors during industrial actions. When regulations were in place, employers could issue a “work notice” to trade unions, specifying which employees needed to work to maintain these service levels. Employees named in a valid work notice and who failed to comply could lose protection against unfair dismissal. Additionally, trade unions were required to take reasonable measures to ensure their members’ compliance; failure to do so could lead to the loss of statutory immunity from tort claims. What Changed from 18 December 2025 The Strikes (Minimum Service Levels) Act 2023 was repealed with effect from 18 December 2025 under the Employment Rights Act 2025. As a result, employers can no longer issue work notices or compel employees to work during lawful industrial action, and all minimum service level regulations have ceased to have effect. Protection from Dismissal From 18 February 2026, dismissal of an employee for participating in lawful industrial action is automatically considered unfair. This protection applies from day one of employment, with no qualifying service requirement. Employers should exercise extreme caution before taking any disciplinary or dismissal action connected to industrial action and should seek appropriate legal advice where necessary. What This Means for Employers in Practice The practical implications for employers are as follows: In addition, the Employment Rights Act 2025 introduced wider changes to trade union law: Recommended Actions To ensure compliance and mitigate risk, employers should take the following steps: Review and Update Policies and Contracts Employers are encouraged to review all pertinent HR policies, procedures, and employment contracts to confirm their compliance with current legal standards. References to minimum service levels or work notices should be removed. Additionally, it is prudent to update policies concerning industrial action, disciplinary procedures, and absence management to ensure alignment with recent legislative developments. Train Line Managers and HR Personnel Line managers and HR personnel should be adequately briefed on the updates derived from the Employment Rights Act 2025. This encompasses comprehending the limits of employer conduct during lawful industrial action and guaranteeing that responses are compliant and proportionate. Maintain Appropriate Employee and Trade Union Engagement Employers are advised to maintain open and constructive communication with employees and recognised trade unions. It is recommended to initiate engagement at an early stage if industrial action is anticipated, and to provide transparent updates regarding operational arrangements and business continuity plans. Seek Legal Advice Before Taking Action Employers are advised to seek appropriate legal counsel before initiating disciplinary action or considering dismissals related to strikes. Given that dismissals under these circumstances are now presumed to be automatically unfair, improper handling of such cases may increase the likelihood of employment tribunal claims. How The Infinity Group Can Help At The Infinity Group, our services go beyond payroll to include keeping clients updated on important employment law and regulatory changes that could affect their business. We provide information on legislative updates, including reforms related to industrial action and employee rights, and clarify how these changes affect employer responsibilities. Our aim is to support businesses in maintaining compliance and understanding the potential impact on their operations. Subscribe to Our Newsletter for Weekly Updates!
New Student Loan Rules in April 2026: Are You Prepared for Plan 5?
A new student loan repayment plan, Plan 5, takes effect from 6 April 2026. Employers operating PAYE will need to ensure that the correct student loan deductions are applied for employees who started an eligible course on or after 1 August 2023. Plan 5 follows the same PAYE collection principles as existing student loan plans. However, it introduces a new plan type with its own repayment threshold and deduction criteria. Employers must ensure that payroll systems and processes are updated in advance to apply deductions correctly and in line with HMRC’s student loan guidance. This guide explains the scope of Plan 5, how deductions are calculated, and what employers need to do to stay compliant. What Is Student Loan Plan 5? Plan 5 is a new student loan repayment option for employees in England who applied via Student Finance England and started an undergraduate or advanced learner loan course on or after 1 August 2023. Employees who commenced their course before this date will continue repaying under their existing student loan plan, based on when and where they studied. Repayment obligations for Plan 5 begin on 6 April 2026, covering the 2026 to 2027 tax year. Employers are required to implement PAYE deductions upon receipt of a notification from HMRC. How Do Plan 5 Repayments Work? Plan 5 repayments are operated in the same way as other student loan plans through PAYE. Deductions are calculated as a percentage of an employee’s earnings above a set threshold. The key figures for Plan 5 are: Deductions are calculated per pay period based on the employee’s earnings within that period. If earnings exceed the threshold, a deduction applies; if they fall below it, no deduction is taken. Deductions adjust automatically with pay changes. Bonuses or overtime will result in higher deductions for that period. Employers are required to process all deductions through PAYE when instructed by HMRC. What Employers Need to Do From April 2026, employers may begin receiving student loan start notices from HMRC for Plan 5. These notices specify when to begin deductions for each individual employee. Employers must process these promptly and accurately through PAYE. With Plan 5 now in effect, employers should confirm the following measures are in place: Make sure payroll software is current As Plan 5 represents a new loan type, payroll systems must be correctly configured to handle it. Employers should verify that their software supports Plan 5 deductions, applies the correct thresholds and rates, and processes HMRC notices accurately. Failure to update payroll software may result in incorrect or missed deductions that require subsequent correction. Apply the correct plan type Employees can only hold one undergraduate student loan plan at a time, whether that is Plan 1, Plan 2, Plan 4, or Plan 5. A Postgraduate Loan (PGL) can be deducted alongside an undergraduate plan where applicable. If a Plan 5 notice is received for an employee already subject to deductions under another plan, confirm the position with HMRC before making any changes. Act only on HMRC notifications Employers must only start or stop student loan deductions when instructed by HMRC, for example via an SL1 or SL2 notice. Further detail on how PAYE notices work is available on the GOV.UK employer PAYE guidance pages. What This Means for Employees If you started your course on or after 1 August 2023, your student loan will be repaid under Plan 5 beginning 6 April 2026. If you are employed, no action is required. Repayments will be automatically deducted through PAYE once your employer receives a notice from HMRC. If you are not paid via PAYE, you will need to make repayments through Self Assessment and include the relevant details when filing your tax return. Why Getting This Right Matters Errors in student loan deductions can lead to non-compliance with PAYE obligations. The introduction of a new plan type increases the likelihood of mistakes, particularly for employers managing payroll in-house without specialist support. Common problems include selecting the wrong plan type, missing HMRC start notices, or failing to update payroll software in time. These errors can cause deductions to be incorrectly processed, resulting in inaccurate payslips and the need for payroll corrections, sometimes requiring additional reporting or direct communication with HMRC. For employers with employees who started their studies on different dates, it is especially important to verify that the correct loan plan is applied. Reviewing current payroll records is a useful step to identify and correct any discrepancies before they create ongoing compliance issues. How The Infinity Group Can Help At The Infinity Group, we provide fully managed payroll services, ensuring your payroll is processed accurately and in compliance with current legislation. With Plan 5 now active, employers must ensure that student loan deductions are applied correctly in line with HMRC requirements. By outsourcing your payroll to us, you can be confident that all HMRC notices are actioned promptly, the correct plan type is applied, and deductions are operated correctly through PAYE. Our service removes the administrative burden and protects your business from the risk of non-compliance, so you can focus on running it. Subscribe to Our Newsletter for Weekly Updates!