The Department for Business and Trade (DBT) have updated their delivery timetable of employment law reforms contained in the Employment Rights Act 2025. ICB points to this updated timetable so members can communicate with clients if they are impacted.
The Employment Rights Act 2025 updates many pieces of employment law, introduced in stages through 2026 and 2027. DBT have updated their timetable, specifically saying the following measures will be implemented on 30 October 2026:
- Trade union reforms, for example the duty to inform workers of their right to join a trade union and union right of access to workplaces; and
- The duty that will require employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees
ICB believes another measure impacting employers will be reforms to ‘tipping law’ and this is detailed as due for implementation by the end of 2026 (rather than in October) 2026. The strengthened law regarding the allocation of tips and service charges include;
- A new requirement for employers to consult with workers at their place of business; and
- An updated code of practice and guidance
A draft updated Code of Practice on the fair and transparent distribution of tips, gratuities and service charges was published on 29 June 2026 which supports the requirement for employers to consult with workers when developing or revising their written tipping policy.
For Bookkeepers
The duty to prevent harassment will impact all employers. The changes to the allocation of tips and service charges will impact certain clients such as employers in the hospitality sector. Therefore, ICB suggest this draft statutory Code of Practice should be made available to enable employers to prepare.