Insights

The Chancellor’s 2025 Budget sets out a wide range of reforms affecting employment costs, payroll administration and HR compliance. The main measures likely to affect employers are summarised below.

The Department for Business and Trade has released a detailed working paper exploring four potential models for reforming non-compete clauses in employment contracts. The paper invites views from employers and other stakeholders by 18 February 2026.

The EAT has confirmed that an Employment Tribunal was entitled to refuse an application to revoke or vary a long-standing restricted reporting and anonymisation order.

HM Treasury has updated its guidance on the use of special severance payments in the public sector. The revised framework reiterates that these payments should be exceptional and made only where there is a clear, evidenced justification.

The Government has reversed its manifesto pledge to introduce day one unfair dismissal protections in a bid to keep the Employment Rights Bill on track. 

The Employment Rights Bill proposes significant reforms across various aspects of employment law. Below is a summary of key provisions, organised by topic.