After the twists and turns of its parliamentary journey in 2025, and many amendments later, the long-awaited Employment Rights Act 2025 is now law. We unpack what this means for employers in the film, TV and entertainment sectors for the year ahead.
UNFAIR DISMISSAL CHANGES
Turning first to the biggest change, unfair dismissal rights. The Labour Government’s aspirational ‘day one’ right not to be unfairly dismissed did not become law. However, the changes are still significant.
From 1 January 2027, employees will need six months’ service to bring a claim for ordinary unfair dismissal (rather than the current two years), meaning anyone continuously employed on or before 1 June this year will have protection from unfair dismissal from the start of 2027.
The current statutory cap on compensation for unfair dismissal, a year’s pay or £118,223, will also be abolished.
This is a big moment in employments rights. Although moving from ‘day one’ to ‘six months’ feels like a welcome compromise, employers must take greater care to get recruitment practices right, assess fit early on and take decisive action when things do not go to plan.
For film and TV companies, who hire staff short term for specific productions, careful thought will need to be given to employment status and termination processes when a production wraps or projects come to an end.
Equally significant is the removal of the compensation cap. Employers are used to the comfort of the statutory cap representing a worst-case scenario for unfair dismissal claims, but such claims will have a higher potential value. In the entertainment industry, where talent, presenters, and behind the camera executives are on significant salaries, this change really will matter.
TRADE UNION EMPOWERMENT
The Act has promised modernisation of trade union legislation, and with this comes a shift of power back to the unions. The Government’s union proposals have largely made it into the final law, with the result that unions will have more freedom to access members and workplaces, call industrial action and secure recognition.
Major changes begin to take effect in February 2026 (with some immediate changes for the public sector before then). In relation to industrial action including strikes, unions will need a simple majority vote to take action, any mandate will last for 12 months, instead of six months, and the notice of industrial action will reduce from 14 to 10 days.
This change to the law is of particular relevance for the film and television industry at the moment, given British Equity’s indication late last month that it may hold a statutory ballot on industrial action if terms cannot be agreed regarding AI. This followed a poll of British Equity members in December, with 75% turnout, where 99% of members indicated that they would refuse to be scanned on set without AI protections.
During 2026, a framework will be introduced giving trade unions stronger rights of access to workplaces from October 2026, both physically and through digital communications with employees.
More detail will follow in Regulations over the coming months.
Union agreements and relationships form an integral part of employment terms and arrangements for many businesses in the entertainment industry. It will be important for employers to fully understand the enhanced union rights and consider how this impacts their own union engagement and industrial relations strategies.
FAMILY FRIENDLY AND LEAVE RIGHTS
Day one rights have been introduced for family and other types of leave, with most expected to come into effect in April this year, or in early 2027.
These include: an entitlement to at least one week of bereavement leave, including for early pregnancy loss; paternity and parental leave rights from day one of employment; and statutory sick pay applicable from the first day of absence.
Rates of pay in respect of such rights remain low or uncertain. Statutory sick pay is capped at £123 per week, and a significant increase is not currently contemplated. The day one rights in respect of maternity and paternity leave do not extend to statutory pay, with employees still needing a period of continuous service for eligibility.
This means immediate costs to businesses are not duly onerous, although employers should note there is an ongoing wider Government review on the parental leave and pay system, although the review stage will not conclude before 2027.
For many employers in the entertainment industry, these reforms won’t mean significant changes, as many already offer over and above statutory entitlements. However, for smaller employers and productions with staff on short or fixed term contracts, it will be important to be aware of the changes and how they may impact policies and different staff groups.
AND THE REST…
The above is a snapshot of three key aspects of the Act likely to be especially relevant to the film, TV and entertainment industries, but there is a raft of further reforms to be aware of.
You can read our overview of the changes here and we will share further insights and webinar offerings as more details emerge.
The takeaway from here is that whilst there are undoubtedly reforms of significance, and employer clients need to use the coming year to get ready for the changes, businesses should not be unduly worried. Being informed and prepared will help the creative sector successfully navigate and manage risk in this new landscape.
Please reach out to our head of film and television and partner, Sarah Lazarides, for more information or training requests about employment law changes and their potential impact.
