Enforcement of worker rights

Current position

In most cases, employment law rights must be enforced by the worker themselves and a worker has three months from the act complained of to lodge a tribunal claim.

The changes

The Employment Rights Act (ERA) introduces the following:

1. An increase in the time limit for bringing a tribunal claim to six months
2. Establishment of the Fair Work Agency (FWA), which will enforce certain worker rights.

Impact

Workers will have longer to decide if they wish to pursue Employment Tribunal proceedings.

Separately, as of 1 December 2025, the Government extended the ACAS early conciliation period from six to 12 weeks, which lengthens the time before the claim is filed. Given the current administrative delays within the Employment Tribunal system, which mean it can take months for a new claim to be processed and sent to the employer, it could easily be up to a year from the act being complained of (eg dismissal) before an employer becomes aware of a claim.

By extending the time limit for bringing a claim, employers will face a greater period of uncertainty, particularly after terminating someone’s employment. In redundancy cases, employers will have to wait longer before being able to replace a redundant employee without fear of this triggering a tribunal complaint.

In addition, this longer timeframe for commencing a claim could mean that by the time the employer is aware of a claim, key witnesses have left, memories have faded or key documents have not been retained.

The establishment of the FWA will provide an alternative means by which workers’ rights can be enforced. Some employers at present will not comply with employment laws and effectively bank on the fact that their staff will not pursue claims (usually because they cannot afford the time or legal costs to do so).

The FWA will provide a publicly funded body that can enforce certain rights – namely domestic agency rules, the minimum wage, licensing standards for gangmasters and certain aspects of the Modern Slavery Act 2015. It will also take on additional rights such as holiday pay and statutory sick pay. As well as being able to require employers to compensate workers who have been underpaid, it will have the power to levy fines on non-compliant organisations and even to bring Employment Tribunal proceedings on behalf of workers or to provide them with free legal advice on their rights.

Timeline

It’s currently proposed that the FWA will be established and operational from April 2026, with the extension to the Employment Tribunal time limit coming into effect from October 2026.

Employer actions now

• Employers should tighten up on employment law compliance before April 2026, when the FWA is established. Areas of particular risk should be identified and a planned process for ensuring compliance should be implemented. HCR can support by assessing non-compliant risk areas and advising on measures to ensure compliance.
• Particular risk areas include:
  • National Minimum Wage (NMW) compliance – especially where staff are paid a fixed rate but can work variable hours, and issues around whether travel time is included for NMW purposes.
  • Holiday pay – the law requires holiday pay to reflect ‘normal remuneration’ so regular overtime, shift premiums and bonus or commission payments may need to be included within holiday pay.