As workplace law and policy enter a period of rapid change, our seminar explored the most significant developments shaping the future of work, from the forthcoming Employment Rights Bill and hybrid working frameworks to the impact of AI and major immigration reforms. Collyer Bristow’s Employment and Immigration experts examined how these changes will affect employers and offered practical steps to prepare for the evolving legal landscape.

Karen Mortenson, Partner – The Employment Rights Bill

The Employment Rights Bill represents the most significant update to UK employment law in a generation. While the legislation is still passing through Parliament, and many details remain to be finalised, it will result in wide-ranging changes, including to dismissal rights, harassment protections, contractual variations and collective redundancy consultation.

Unfair Dismissal

The government intends to make unfair dismissal a “day one” right, removing the current two-year qualifying period. The final version of the Bill may potentially introduce modifications, but the government said on 5 November that it remained “committed to delivering unfair dismissal protections from day one—not two years, not six months, but day one”.

The government has said the changes will not remove business’ ability to dismiss employees who do not pass probation, and the expectation is that if an employee is dismissed (or given notice) during an initial period, expected to be nine months, their dismissal would be subject to a lighter process if based on conduct, capability, illegality, or “some other substantial reason relating to the employee”.

The Bill is due to return to the House of Lords on 17 November. But while details are not yet confirmed, employers should consider tightening their recruitment processes, extending probationary periods, review their disciplinary/capability procedures, and ensure their processes support fair and transparent decision-making even at an early stage of employment.

Harassment

Under the Equality Act 2010, harassment occurs where unwanted conduct related to a protected characteristic (such as sex, race or disability) has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating, or offensive environment. Sexual harassment occurs where unwanted conduct of a sexual nature has that purpose or effect.

Since October 2024 employers have been required to take “reasonable steps” to prevent sexual harassment of their staff, including by third parties such as clients, customers or suppliers. The Employment Rights Bill seeks to strengthen this further by requiring employers to take “all reasonable steps” to prevent harassment of any kind and by reintroducing liability for third-party harassment under the Equality Act.

The duty to take all reasonable steps to prevent harassment, including by third parties, will be onerous. Employers can expect a higher compliance threshold and increased scrutiny of preventative measures. In anticipation, organisations should review and update anti-harassment policies, ensure risk assessments cover all forms of harassment, and deliver regular training to staff. Collyer Bristow can provide tailored training if required (please contact Karen Mortenson for details) but demonstrating proactive prevention efforts will be critical to mitigating liability.

Fire and Rehire

The Bill will further limit the use of “fire and rehire”. Dismissals will be automatically unfair if the reason, or principal reason, for the dismissal is because the employer attempted to impose a “restricted variation”, such as a change to pay, hours or holiday, and the employee did not agree to the change. There is a very limited exception where the employer is facing imminent financial collapse, but even then the dismissal may still be unfair, applying the usual test for ordinary unfair dismissal. That test would also apply where dismissal and re-engagement is used to impose other “unrestricted” variations, and the Bill makes it clear that tribunals must take account of the reason for the variation, any individual and collective consultation, and anything offered to the employee in return.

Even prior to these changes coming into force, fire and rehire is a high-risk strategy, and employers should take legal advice before seeking to amend employees’ terms and conditions.

Collective Redundancy Consultation

Where an employer is proposing 20 or more redundancies at one establishment within a rolling 90-day period it must notify the UK government and go through a process of collective consultation.

Under the Employment Rights Bill, the maximum penalty for failure to inform and consult is due to double, from 90 to 180 days’ gross pay, from April 2026. (In addition, failure to notify the UK government is, and will continue to be, a criminal offence.)

The draft legislation also introduces a business-wide threshold for collective redundancy consultation, but the details are still to be confirmed.

Employers planning restructures should monitor developments closely and seek advice at an early stage to ensure compliance with both current and future requirements.

What Employers Should Do Now

While the Employment Rights Bill is not yet law, it clearly signals a shift towards greater employee protection and stronger regulatory oversight. Employers should review contracts, policies and procedures now, ensuring they can adapt once final legislation and guidance are issued. Regular policy reviews and training will help ensure compliance and demonstrate good practice in an evolving legal landscape.

Abbie Armstrong, Associate – Hybrid Working

Legal framework:

• Hybrid working describes an arrangement where employees divide their time between remote and office-based work.
• It is distinct from flexible working, which is a UK statutory right allowing employees to request a change to their working pattern (i.e. when, where or how they work).
• From April 2024, under the Employment Relations (Flexible Working) Act 2023, employees can make a flexible working request from their first day of employment and up to twice within any 12-month period. Employers are now required to respond to such requests within two months and to consult with the employee before rejecting a request.

Contractual and procedural considerations:

• Review employment contracts to confirm the contractual place of work and any mobility or general variation clauses.
• Check if contracts or any communications reserved the right to require staff to return to the office if needed.
• Understand previous communications about hybrid working arrangements e.g. if they were described as temporary or introduced following a flexible working request.
• Inform and consult with employees before implementing changes – especially where informal hybrid arrangements may have become implied terms through custom and practice.
• Consider ‘fire and rehire’ as a last resort.

Risk of discrimination:

• Full-time office attendance policies could indirectly discriminate certain groups (for example, employees with caring responsibilities or health conditions).
• Rejecting a flexible working request for hybrid working could amount to direct discrimination if the decision was based on a stereotype or if the individual was treated differently from a comparable colleague making the same request.
• Employers should assess the impact of policies on specific groups and carefully document the decision-making process before making any changes.

Practical and strategic implications:

• Hybrid working is now a significant factor in talent retention, organisational culture, and employee engagement.
• Employers should leverage flexibility to balance productivity, collaboration, and business requirements with employee satisfaction.
• Regular reviews are essential and implementing contractual changes before the Employment Rights Bill comes into effect is recommended, as ‘fire and rehire’ practices will be subject to increased scrutiny.

Tania Goodman, Partner and Head of Employment – AI in the Workplace

Artificial intelligence (AI) is rapidly transforming the workplace, from writing assistants and chatbots to recruitment screening and data analytics. Used well, AI can increase productivity, improve decision-making and support learning and development. However, it also presents significant legal, ethical, and reputational risks if not properly managed. Employers must balance innovation with compliance and accountability.

Data Protection and Privacy

UK data protection law, primarily the UK GDPR and Data Protection Act 2018, places strict obligations on how personal data is collected, stored, and used.

Using public AI tools, such as ChatGPT or other online platforms, can breach these rules if personal or confidential data is uploaded. Such tools may process information outside the UK or EU and use it for model training, raising serious compliance risks.

Key takeaways:

• Never input personal, confidential, or client data into public AI systems.
• Ensure your organisation has a lawful basis for processing data through AI, supported by clear privacy notices and robust security safeguards.
• Consider secure alternatives such as Microsoft 365 Copilot or PrivateGPT, which operate within protected environments and prevent data from leaving the organisation.
• Even with secure systems, ongoing vigilance is essential to prevent misuse or data leaks.

Bias, Fairness and Discrimination

AI systems can unintentionally replicate or amplify biases in the data they are trained on, particularly in recruitment and performance management. This can lead to direct or indirect discrimination under the Equality Act 2010, for which employers, not the software providers, are legally responsible.

For example, if a recruitment algorithm is trained on historic data showing that most successful hires came from a particular university or demographic group, it may start favouring candidates from similar backgrounds while filtering out others with equivalent skills or experience. Even though the system has no intent to discriminate, the outcome may still be unlawfully discriminatory.

To mitigate the risks:

• Test and audit AI tools regularly for bias.
• Maintain human oversight of all key employment decisions.
• Be transparent with candidates and employees about when and how AI is used.
• Keep records of your due diligence and equality impact assessments.

Ultimately, employers must ensure that AI supports fair decision-making, not replaces it.

Governance and Leadership

Effective use of AI depends on leadership, culture, and communication. HR and management teams should take ownership of AI governance by:

• Providing training and awareness to demystify AI and build confidence.
• Updating policies and processes to reflect AI use.
• Engaging staff early, encouraging openness and reporting of concerns.
• Ensuring human-in-the-loop decision-making for all employment matters.

This proactive approach reduces risk while building trust and transparency around AI use.

The Importance of an AI Policy

A clear AI policy is now essential for every business. It should define:

• Which types of AI use are permitted and which are prohibited.
• How data protection obligations are met.
• When and where human review is required.
• Who employees should contact if issues arise.
• How training and regular reviews will be built into the organisation’s culture.

Mapping current AI use and conducting risk assessments are important first steps. Policies should be reviewed regularly, as technology and regulation evolve quickly.

Conclusion

AI can be a powerful workplace tool when deployed responsibly. Employers should embrace the benefits, efficiency, insights, and innovation, while maintaining robust legal and ethical safeguards. By keeping people at the centre, ensuring transparency and oversight, and embedding regular review and training, organisations can use AI to enhance productivity and culture, not compromise them.

Charles Avens, Partner and Head of Immigration – Immigration Law Update

The Skilled Worker Visa – Major Legal Reforms

Significant reforms to the Skilled Worker Visa took effect on 22 July 2025, marking the most substantial shift in UK immigration policy since the post-Brexit changes. The new rules, introduced by the Labour government, are designed to reduce lower-wage migration and promote higher-skilled employment with major implications for both employers and migrant workers, particularly in medium-skilled sectors, like leisure, hospitality, care and retail.

Rising Skill and Language Thresholds

The government has reinstated the RQF 6 (degree-level) requirement, reversing the 2020 relaxation that allowed RQF 3 roles (A-level / advanced apprenticeship level). This shift has removed around 180 occupations from eligibility, including counsellors, veterinary nurses, teaching assistants, care workers, and police/prison officers.

Adding to the tightening, from 2026, the English language requirement will rise from B1 to B2, reflecting a clear focus on higher-skilled, higher-paid roles. For employers, this means many existing recruitment strategies will need recalibration, especially for sectors reliant on medium-skill migrant labour.

Existing visa holders in roles that are no longer eligible can continue under their current sponsorship, but new applications will be restricted to higher-skilled roles.

Interim Measures – Temporary Shortage List (TSL) and MAC Review

To manage the transition, the government has created a Temporary Shortage List (TSL), allowing selected RQF 3–5 roles to remain eligible for sponsorship until 31 December 2026.

The Migration Advisory Committee (MAC) will review the TSL in October 2025, with each role remaining eligible for up to three years. The MAC’s review will determine whether these occupations stay on the list, expand, or potentially gain pathways to settlement.

In parallel, the Immigration Salary List (ISL), which provides reduced salary thresholds for certain roles (minimum salary £33,400) will be phased out by December 2026, further restricting lower-paid sponsorship and adding further pressure on pay budgets and recruitment plans.

Salary Threshold Adjustments – The Rising Cost of Sponsorship

The general minimum salary threshold for Skilled Worker visas has increased from £38,700 to £41,700, alongside a 10% rise in going rates for most roles. These thresholds now apply to all new sponsorships, visa extensions, and employer switches, increasing the financial burden on organisations with multiple sponsored employees and creating pressure to upskill roles or adjust pay scales.

Sector Impact and Early Trends

The effects are being felt most acutely in medium-skilled sectors such as social care, hospitality, construction, and agriculture. The NHS and care sector have already warned of worsening recruitment challenges.

Home Office data shows a sharp decline in uptake: by September 2025, only 2,700 Skilled Worker visas were issued — a 50% drop compared with the 2024 average. Restrictions on dependants are expected to further reduce applications, raising concerns that the UK may become less attractive to skilled migrants.

Next Steps for Employers

Employers must act decisively to stay compliant and maintain workforce stability. The Home Office intends to increase significantly, its scrutiny of sponsor licence compliance in HR departments inside companies, with more checks and tighter controls, therefore Key priorities include:

• Auditing sponsor licences and ensuring compliance procedures are up to date and HR personnel are fully trained in best practice in case of a visit from the Home Office.
• Planning for the withdrawal of the ISL and TSL in 2026.
• Assessing whether roles can be upskilled to meet RQF 6.
• Assessing whether staff can be upskilled to meet the new Level B2 English language requirement to achieve permanent residence at the end of their work visa.
• Reviewing salary offers to meet higher thresholds.
• Exploring alternative visa routes for essential staff.
• Updating contracts, handbooks, and policies to reflect new visa and sponsorship obligations.

To support employers through these changes, Collyer Bristow has launched a new Sponsor Licence and Employment Policy Audit Service. The service helps businesses identify compliance gaps, update key HR documentation, and prepare for Home Office scrutiny, ensuring recruitment strategies are legally sound and future-proofed.

If you would like to discuss how this service could benefit your organisation, please do get in touch with a member of our Employment or Immigration teams.

Commentary

The 2025 reforms signal a clear policy shift: the UK is prioritising high-skilled migration over medium or lower skilled roles. Employers in sectors traditionally reliant on medium-skilled migrant labour will face hard choices — either upskill roles, increase salaries, or explore alternative routes. In addition being prepared for a Home Office sponsor licence visit and being able to demonstrate best compliance practice is critical to all sponsor licensing holding companies and institutions.

Early planning, structured audits, and clear policies are not just compliance exercises; they are strategic imperatives to protect workforce stability and business operations. With further secondary legislation and guidance expected in 2026, early preparation and proactive reviews are essential to safeguard compliance and workforce stability.