Analysis | How could rises in pension contributions affect employers?
CIPD pay and reward adviser Charles Cotton examines how potential changes to pensions in the UK could affect employers, and what the implications could be for those in HR
This month – Employment Rights Bill update, statutory digital HR1 forms and Keep Britain Working report
In what can only be described as a bumper month in UK employment law, we are going to cut to the chase about changes to HR practice from this November.
In light of changes to proposed measures in the Employment Rights Bill, this page has been updated on 1 December 2025.
Following an announcement on 27 November 2025, the UK Government made a major concession in the Employment Rights Bill.
The UK Government announced its agreement to a six-month qualifying period for unfair dismissal. You can read more about the CIPD’s response to this announcement in our press release. This change will have a significant impact on the practical steps needed to implement the unfair dismissal changes when they are confirmed.
Now this concession has been made, Royal Assent could progress but there are remaining areas of contention.
At the time of writing, the other contested matters include:
| Government/Commons position | Lords position |
|
Zero hours: Give workers on zero-, or low-hours, contracts a right to guaranteed hours |
Zero hours: Instead of an ‘automatic’ offer of guaranteed hours contracts, the Lords propose the remit should allow workers to opt-in/opt-out of such contracts. The Lords are also pushing for a definition of ‘seasonal work’ to allow certain sectors greater flexibility away from the regime |
|
Trade unions: A broad range of measures to ease barriers to entry to unions, including: Enabling trade unions to conduct electronic balloting, Easing access for unions to conduct workplace balloting Union members to be automatically included in paying into the union’s political fund unless they choose to opt out |
Trade unions: The Lords want to retain the 50% turnout threshold in ballots for industrial action (i.e. 50% of people need to turn out in person to vote rather than being able to do so electronically) Union members to have to actively choose to pay into the union’s political fund |
The CIPD public policy team are representing the voice of the profession across the Employment Rights Bill’s progress. Follow on Linkedin for the Policy teams’ updates on the status of each stage.
Whether you are the senior HR director in a multi-national or the leader of an SME, all employers must note a change to workflow from 1 December 2025. From this date HR1 forms are digital only.
The forms are statutory, used when employers are proposing to make 20 or more redundancies within a 90-day period at one establishment. It is a legal requirement to submit this form to government to notify it of this intent. If forms are not submitted, the corrective action can be serious; criminal prosecution of the company and/or potentially a personal liability for any directors.
As of 1 December 2025:
Please see FAQs on the form on the government website. The CIPD provide member guidance on managing the redundancy process.
When the Keep Britain Working report was published this month, its purpose was to shine a light on the rise in sickness absence and ill health across the UK workforce.
Sir Charlie Mayfield, the report's lead reviewer, encourages employers to use the findings to open up conversations and reduce fear around these issues. The report offers several practical suggestions for employers:
Encourage early, open sharing of concerns about health and wellbeing. This helps you identify issues sooner and contribute to prevention, rather than reacting when problems become more serious. The report highlights that support for sickness absence varies widely across organisations, so building a consistent, safe environment is vital.
The report outlines several actions employers can take to improve inclusion. These include:
Monitor the government’s vanguard trials
There are currently 60 vanguards testing new ways to reduce economic inactivity. Their findings are expected to feed into future policy and will be shared through the proposed Workplace Health Intelligence Unit (WHIU).
Review your use of support systems
Government incentives and tools such as welfare support, fit notes, Access to Work, and dispute resolution processes are under review. Consider how you currently use these systems and where they could better support employees.
The report recommends this model as a way to reframe how organisations support people throughout their working lives, particularly around health and work challenges.
It may be helpful to review how you track key absence information. This could include monitoring long-term sickness, disability retention, and return-to-work timelines, so you can spot trends and improve decision-making.
Want more employment law advice? Members can take out a discounted subscription to HR-inform for additional resources.
CIPD pay and reward adviser Charles Cotton examines how potential changes to pensions in the UK could affect employers, and what the implications could be for those in HR
Correspondence with the Secretary of State for the Department of Business and Trade outlining the CIPD's belief that the Employment Rights Bill should now be passed.
Marek Zemanik, Senior Public Policy Advisor, CIPD UK Nations, discusses some of the key findings from the CIPD Good Work Index, looking at some of the implications for people practitioners and policy-makers in Wales
Sir Charlie Mayfield, lead reviewer for Keep Britain Working, gives his view on the role HR will pay in delivering the recommendations from the review
Explore our collection of resources around legal issues surrounding employees and workers, including Q&As for various types of workers and relevant case law
Explore our legal resource on the issues involved in an employment tribunal claim, including Q&As and relevant case law
Keep up to date with the latest employment law developments and proposed future changes
Gain insights and advice on working with trade unions amid Employment Rights Bill changes. Members can also download a checklist to review their compliance.