ERA 2025: the new Act and the entertainment industry

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.

Employment Rights Bill: The latest for July 2025

After a quiet few months on the journey of the Employment Rights Bill, the last couple of weeks have seen a flurry of employment law updates. There has been a lot to unpack, so we’ve summarised the latest timeframes and changes in an update of the ‘need-to-knows’ for right now.

What’s the current status?

The Bill has been making its way through the parliamentary journey to becoming law over recent months. The Bill is now in the ‘report stage’ in the House of Lords, after which it will return for a third reading and further consideration of the proposed amendments. The latest amended version of the 318-page Bill was published on 24 June 2025.

What’s the timeframe?

On 1 July 2025 the government published its UK employment law roadmap for the delivery of changes, so we now have more certainty on implementation dates. The key takeaway is, with the phased implementation, that most changes are going to take longer than expected to become law.

Although a handful of changes will take effect shortly after the Bill receives Royal Assent, most will be implemented during a lengthy phased delivery plan. Some of the most significant are:

  • April 2026: ‘day one’ rights to paternity leave and parental leave; ‘day one’ right to statutory sick pay and removal of earnings threshold for this; enhancement of whistleblower protection; trade union recognition and balloting changes.
  • October 2026: enhanced duty to take ‘all’ reasonable steps to prevent harassment; changes to the law on fire and rehire; further expansion of trade union rights.
  • 2027: introduction of ‘day one’ protection from unfair dismissal; changes to the law on zero-hour contracts; enhanced rights for pregnant workers; statutory bereavement leave; umbrella company regulation.

What can be seen immediately is that it will take longer than expected for some of the biggest changes to become law, with key measures such as ‘day one’ unfair dismissal rights being pushed into 2027. This means more planning and preparation time for businesses to determine how best to navigate the changes in their organisation. Consultations about the proposed changes will commence shortly and we expect those to continue into 2026.

What’s new or changed recently?

On 7 July 2025, a number of proposed changes were detailed for the Bill, with some attracting considerable press attention over the last few days. We’ve outlined the most significant updates from the latest draft below, as a summary of the recent amendments. (Not all measures are mentioned in this briefing; we have focussed on what has changed in the latest version of the Bill).

For all of the categories below, it is important to emphasise that these are proposals only. They may not make it into the final Bill and are subject to change.

For those who want some further topical reading, press coverage and commentary can be viewed here.

Update: Bereavement leave for families who face pregnancy loss

A statutory right to bereavement leave has been part of the proposals from the early stages, but the latest amendments confirm that bereavement leave will be extended to a stillbirth or loss of a child in the first 24 weeks of pregnancy. This has been referred to as ‘miscarriage leave’ in some press coverage and has been welcomed by many charities and campaigners.

This means that employers may see the right to bereavement leave taken up more than initially expected, given the estimated statistic that more than one in five pregnancies sadly end in miscarriage. Companies will need to update policy and practice accordingly when the time comes.

Update: A ban on NDAs (including in settlement agreements) which cover harassment and discrimination

This is a significant amend for employers to note; non-disclosure agreements and similar deals (including settlement agreement terms) will be void if they prohibit an individual disclosing details of discrimination or harassment. Confidentiality clauses may still be permissible, at the request of the employee only, although the detail of this is yet to come. What’s clear is that this change aims to make ‘cover up culture’ a thing of the past.

Of course, some clients are ahead of the curve on this, and already have a ‘no-gagging’ policy for any settlement or exit terms where there has been a complaint or claim of discrimination or harassment. For others, this will be a real step change. All employers will need to start thinking about their commitment to culture, good training and transparency in preparation for this change.

Update: Changes to whistleblowing laws

The amendments include significant changes to the protected disclosure or ‘whistleblowing’ laws, if they are passed and included in the final bill. In brief, these include changes to what qualifies as a ‘protected disclosure’, a tightening of the public interest requirement, a new offence of intentionally or recklessly subjecting a whistleblower to a detriment and a proactive duty on larger employers to take reasonable steps to investigate any protected disclosure.

This is one to watch and the finer detail of the proposed enhanced whistleblower protection, currently scheduled to become law in April 2026, still seems ‘up in the air’ at this time.

Update: The fire and rehire ‘ban’

The ban on ‘fire and rehire’ (the practice of dismissing an employee for refusing to agree to a variation of their contract and rehiring on the employer’s preferred terms) has attracted criticism that it would make it difficult for employers to make routine organisational changes where needed.

The latest proposals seek to temper the ban, in particular with a proposal that it will only prohibit ‘restricted variations’ to include pay, pension, hours and holiday. There are also proposed changes as to how the proof of financial distress (where fire and rehire is permitted) will be assessed and the consequences of unlawful dismissals in this situation, with this no longer being automatically unfair, but assessed by a reasonableness test.

The amendments importantly allow for variation clauses in employment contracts. Employers could consider checking their contract terms; if their standard templates don’t include a right to vary terms and conditions, it would be advisable to think about updating those now.

Update: New proposed rules on zero hour worker contracts

Changes to what the Government term ‘exploitative’ zero hour contracts have been a headline change in the Bill. These are casual employment contracts which do not guarantee any minimum working hours. The  latest amendments water down an originally proposed ban on these contracts, so that employees can request guaranteed hours, but there is no duty on the employer to offer them. Again these are proposed amends only which may not be backed by the Government, so we could yet see a return to the more far reaching reforms for zero hour contracts as originally outlined in Bill.

The review of the parental leave system

Separately from the changes in the Bill, on 1 July the Government also launched a full review of parental leave and pay. The review will look at the whole family friendly leave system, including maternity and paternity leave, shared parental leave; adoption leave and others, and will also review the statutory pay system. We will keep clients updated as the review progresses.

We will continue to track the developments of the Employment Rights Bill and will issue further updates as the Bill gets to the final consideration stage and we have more detail on final proposals and implementation.

Statutory paternity pay under the ERB: Lucy Burrows’ article published by Employee Benefits

“Even with paternity leave available from day one of employment, the proposals compare woefully to the paternity offerings from our European neighbours. Pre-eminent House of Lords peers have pushed for amendments for better-paid rights for fathers and co-parents. We will have to watch this space as the bill returns to the Commons, but no doubt this, like so many issues, could meet with reluctance to increase the costs of the bill’s changes any further.”

Senior associate Lucy Burrows’ article on the treatment of statutory paternity pay under the Employment Rights Bill has been published by Employee Benefits. The full article can be found here.

Employee Benefits is a UK digital publication which provides HR, reward and benefits professionals with industry news, tax and legislation updates and in-depth articles on all aspects of employee reward and benefits.

Supreme Court ruling on ‘sex’ in Equality Act: workplace implications for Film & TV

In April 2025, the Supreme Court gave a judgment on the meaning of “sex” in the Equality Act 2010. Widely reported in the mainstream press, and generating considerable debate, we explain the judgment and how it relates to practices in the workplace.

The case of For Women Scotland v The Scottish Ministers concerned the meaning of the terms “man”, “woman” and “sex” in the Equality Act 2010 (EqA) in light of the Gender Recognition Act 2004. It decided that these terms refer to biological sex. This means that if someone identifies as trans, they do not change sex for the purposes of the EqA, even if they have a Gender Recognition Certificate.

The decision is an important development in the entrenched conflict between those on either side of the trans rights and gender critical debate. Unless future legislation changes the position, the judgment puts the meaning of sex in the EqA in unequivocal terms. Sex = biological sex.

So what does this mean for UK film and TV companies, who are employers or engage freelance cast and crew on productions? We’ve identified some key areas where this judgment will have an on-the-ground impact for clients:

Facilities

Employers need to consider their provision of workplace facilities, in particular toilets and changing areas. Under health and safety law, employers have to provide separate toilet facilities for men and women. Unless toilets are individual lockable rooms with wash basins (not just cubicles) then they ought to be single sex and reserved for those of biological sex. This could be a change of policy for production companies, as the prevailing approach has been to allow staff to use facilities in line with the sex they identify as. To continue permitting this could give grounds for claims of discrimination or harassment based on sex.

Companies will need to consider how to communicate or even enforce any policy changes around facilities with sensitivity towards all those impacted, and where possible identify solutions to provide compliant gender neutral ‘third’ spaces. This is not an easy task for those in the film and TV sectors, where the physical workplace is subject to change. Options for practical solutions may have to be assessed for each production or shooting location on a case by case basis.

Support for staff

The Supreme Court decision could have a real impact on some members of the workplace. Companies should consider steps which could be taken to support staff, through people team and wellbeing services. They might also consider reiterating a commitment to EDI, or even introducing improved provision in this area. Employers need to be alive to the possibility of complaints or even claims when contemplating policy changes and approach the issue with care, appreciating the differing views which may exist whilst ensuring inclusion is not compromised.

Protection under the EqA against discrimination or harassment because of or related to the protected characteristic of gender reassignment, or a person’s perceived sex, has not changed. In this context gender reassignment means proposing to undergo, undergoing or having undergone a process to reassign sex; it does not require a Gender Recognition Certificate or gender affirming medical treatment. Companies must consider how to balance the requirement to provide single sex facilities (bearing in mind the risk of sex discrimination claims if they are not compliant) with the rights of trans people not to experience gender reassignment discrimination at work.

Communications and respect at work

The decision undoubtedly leaves employers and companies navigating a tricky emotive issue with no perfect answers on best approach. Establishing a culture of respect in the workplace and ‘disagreeing well’ will be important, with acknowledgment that conflicting opinions will exist in diverse workplaces. This can be done through relevant policies, defined values or codes of conduct, with training and role modelling behaviours also being key. Those in management or people teams will need to ensure an even handed approach when dealing with clash of opinions between staff or the enforcement of any changes.

Looking ahead

The Supreme Court decision did not provide all the answers for employers managing challenging situations where they encounter a clash of rights based on different protected characteristics. The Equality and Human Rights Commission is consulting to produce detailed advice through an updated Code of Practice, expected after June this year. In the meantime, concerned employers should consider seeking legal advice on any significant changes to policy or approach. It is important to be mindful of the complexity and emotion in this debate, and to listen to employee representations and lobby groups. However ultimately employers must take workplace and policy decisions with the clear legal judgment from the Supreme Court in mind.

New statutory right to neonatal care leave and pay: key takeaways

The new statutory right to neonatal care leave came into effect on 6 April 2025. This allows parents to have additional time off to be with a baby who is receiving neonatal care.

Under the Neonatal Care (Leave and Pay) Act 2023, eligible parents can take time off work to be with a baby who is receiving neonatal care. This new right introduces a leave and pay entitlement for qualifying working parents, with the aim of providing better support to those families and an element of income protection.

Neonatal care leave

Neonatal care leave is a day one right for employees; it does not apply to workers or self-employed contractors. It also only applies to parents of babies born on or after 6 April 2025.

Qualifying parents (including fathers, non-birthing, adoptive and surrogate parents) who have a baby admitted to neonatal care up to the age of 28 days may be eligible for neonatal care leave after their baby has been receiving care for seven days or more

The entitlement is to one week’s leave for each week a baby has neonatal care, up to a maximum of 12 weeks. Neonatal care leave must be taken as seven consecutive days, so parents have to take a minimum of one week.

Neonatal care leave is additional to other types of family leave, and each parent has their own leave entitlement. This means that fathers and non-birthing parents now have a specific right to leave, allowing them to spend more time with their baby receiving neonatal care. Where parents do not meet eligibility criteria, they may be able to rely on other forms of statutory leave, such as parental leave or time off for dependents.

Both neonatal leave and pay (see below) can be taken in two tiers; Tier 1 is while a baby is still receiving care plus a week after, and Tier 2 is within 68 weeks of the birth. Neonatal leave can therefore be accrued and taken at a later date. The notice an employee must give their employer depends on whether they are taking Tier 1 or Tier 2 leave.

The leave is not limited to the time when a baby is in a neonatal hospital unit. It can also apply to certain neonatal care after leaving hospital or to palliative/end of life care.

Neonatal care pay

Additionally, eligible parents may be entitled to up to 12 weeks of neonatal care pay if they have 26 weeks of continuous service with their employer and meet the minimum National Insurance earnings threshold (for April 2025-26, this is an average of £125 per week gross).

The current statutory rate for neonatal care pay is £187.18, although of course it is open to employers to offer an enhanced pay entitlement under their own workplace policies. 

Next steps

Employers should consider whether to introduce a specific policy on neonatal care leave and pay, or how their existing policies may need updating. They may also wish to consider communicating the new entitlement to managers or employees more generally.

For further information, advice on a specific situation or to update your own workplace policies, please contact our employment team.

The future of UK Employment law in the film and TV industry: 2025 and beyond

The Employment Rights Bill, described by the government as “the biggest upgrade to workers’ rights in a generation”, has been making progress through Parliament over the last few months. The latest round of amendments to the Bill has provided further insight into what lies ahead.

A headline change is the day one right not to be unfairly dismissed. This is expected to be subject to an initial period of employment, when a lighter touch procedure for dismissal can be used. The details of the process and the period haven’t been confirmed, but nine months has been suggested. For companies who hire in crew and talent for specific productions or projects, this could mean significant change is needed in practices for recruitment and terminations.

The Bill outlines further updates to workplace harassment laws. Employers are already under a positive duty to take “reasonable steps” to prevent sexual harassment and must implement measures to assess and mitigate the risk of sexual harassment. The Bill strengthens the law to require employers to take “all reasonable steps” ( “all” being the key word) and introduces liability for third party harassment. Many production companies are already thinking ahead to this duty, with risk assessments that extend to third party harassment, but this will be one to revisit as the detail emerges. What is clear is that solely relying on the roll out of ED&I training is no longer enough.

Other changes of significance include: the introduction of day one rights in respect of statutory sick pay, paternity leave and parental leave; a right to bereavement leave; and enhanced maternity protections. Dismissals of employees who are pregnant, on maternity leave or during a six month return to work period, would be prohibited, other than in specific circumstances. New flexible working rights are also proposed, meaning that an employer can only refuse flexibility requests where it has a “reasonable” basis to do so. As expected, these changes move the law towards stronger rights and protections, and work life balance, for working people.

Far reaching changes are also expected in respect of restrictions on zero-hours contracts (including the right to request guaranteed hours and reasonable notice of work schedules) and the practice of ‘fire and rehire’. For some sectors these will mean huge upheaval; for those in film and TV it will depend on their current use of such practices. The Bill also bolsters collective rights, including introducing changes to the trade union recognition framework and the ability of unions to take industrial action, developments which could be very significant for the media industry.

And what of the anticipated single status of worker? The government originally proposed to remove the (often confusing) distinction between ‘employees’ and ‘workers’, which would mean that if someone was not a genuinely self-employed freelancer, they must be an employee. Again, this would be particularly relevant to production companies, who may be in the practice of engaging crew as workers. For now, this change does not appear in the Bill, but further consultation is expected in 2025.

So, what next? Most legal changes won’t come into force until 2026, but it’s never too early to start preparing and thinking especially about recruitment and dismissal processes, and how this might need to change in your organisation. In the meantime, we’ll watch this space as the Bill moves through Parliament and the devil in the detail comes into sharper focus, with further updates to come.