This insight highlights the key reforms introduced by the Employment Rights Act 2025 (Act) that insolvency practitioners should consider when planning a proposed restructuring. It outlines how the Act significantly strengthens employee protections, particularly in relation to unfair dismissal, dismissal and re-engagement, as well as collective redundancy consultation, expanded family-friendly and worker rights. It also explains how these changes may increase both the procedural complexity and potential cost exposure of restructurings, including longer consultation periods, higher tribunal penalties and an increased likelihood of claims. By drawing attention to these developments, this note is intended to help practitioners assess the practical impact of the Act on restructuring strategies, as well as to incorporate these considerations into insolvency planning at an early stage. However, as elements of the Act remain subject to further consultation and staged implementation, practitioners should continue to monitor developments to ensure they remain aware of evolving obligations as the legislation is brought fully into force.
