Employment Rights Bill 2025: Key developments in equality and workplace protections

The Employment Rights Bill (the Bill), currently progressing through parliament, introduces a series of reforms that will significantly impact employers’ obligations in relation to gender equality and workplace safety. This article outlines four key developments that employers should be aware of and begin preparing for.

1. Equality action plans: From transparency to accountability

Since 2017, employers with 250 or more employees have been required to publish annual gender pay gap data. The Bill proposes to go further by introducing a statutory requirement to publish “Equality Action Plans” alongside this data.

These plans must:

• Identify the causes of pay disparities
• Set out evidence-based actions to address them
• Be published on the government’s gender pay gap reporting platform, with visual indicators of compliance

Although many large employers already publish action plans voluntarily, the Bill will make this a legal requirement, with penalties for non-compliance. The government will also provide guidance to help employers select effective actions, including a focus on supporting women through key life stages, including the menopause.

2. Inclusion of contract workers in gender pay gap reporting

The Bill also addresses a long-standing gap in reporting by requiring employers to identify and disclose outsourced labour relationships. Employers will be expected to:

• Name the companies from which they outsource work
• Ensure that gender pay disparities in those organisations are visible and accountable

This requirement aims to increase transparency and accountability for gender disparities across supply chains. It reflects the government’s view that organisations should be responsible for the equality outcomes of all workers contributing to their operations, not just direct employees.

3. Strengthened duty to prevent sexual harassment

Since 26 October 2024, employers have a duty to take reasonable steps to prevent the sexual harassment of employees and workers during the course of their employment. This duty:

• Applies proactively, requiring employers to act before incidents occur
• Is enforceable by the Equality and Human Rights Commission (EHRC), even in the absence of a formal complaint
• Is supported by regulations specifying what constitutes “reasonable steps”, following a current call for evidence

The Bill plans to introduce an even stronger statutory duty on employers to extend this to “all reasonable steps” to prevent sexual harassment in the workplace.

4. Reintroduction of third-party harassment protections

The Bill reinstates previously repealed protections against third-party harassment of employees in the course of their employment in relation to all protected characteristics, such as abuse from customers, clients, or service users. Employers may be held liable for permitting a third party to harass one of its employees if:

• An employee is harassed by a third party in the course of their employment with the employer
• The employer failed to take all reasonable steps to prevent that harassment

The new provisions do not require there to have been any previous occasions of third party harassment, Further regulations are expected to define what constitutes “reasonable steps” for the purpose of the new duty. A government call for evidence to inform these regulations is currently open and is scheduled to close on 30 June 2025.

Next steps for employers

Although many of the Bill’s provisions will require commencement regulations and further consultation before coming into force, employers can start to take steps to begin preparing now by:

• Auditing gender pay data, including outsourced roles
• Drafting or updating gender pay action plans
• Reviewing contracts with outsourcing partners to ensure alignment on equality objectives
• Updating harassment policies and training in line with anticipated statutory duties

Further guidance and support

Our Employment Law team is advising clients on how to prepare for the Employment Rights Bill and its forthcoming regulations. If you would like assistance with compliance planning, policy reviews, or training, please get in touch.

For more in-depth guidance or support on The Employment Rights Bill, book a free 30-minute consultation with a member of our Employment team today.

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This content is correct at time of publication