The Employment Rights Act 2025 is transforming employment law in the UK. In this article, we consider the changes relevant to mergers and acquisitions. We explore the knock-on implications for both sellers and buyers, focussing on due diligence, the acquisition agreement and post-completion integration.
The Employment Rights Act 2025 (ERA) reforms change the risk profile for every acquisition, so it has never been more important for buyers to focus on employment due diligence and get the deal structure, business valuation and deferred consideration mechanisms right.
For sellers, awareness of, preparation for and compliance with ERA requirements is key to avoid any significant issues that could scupper a sale.
Whilst the ERA is coming into force in stages throughout 2026 and 2027, some changes are already in force and the reforms should be front and centre of mind for both parties as they negotiate the terms of the deal.
The overall impact of the ERA is that the scope of employment due diligence will expand and require greater time and focus. The ERA changes the risk profile and cost of employment claims, meaning buyers will need to pay closer attention to any underlying employment liabilities.
In addition, the recent creation of the Fair Work Agency, consolidating enforcement agencies, is likely to lead to more proactive oversight, engagement and enforcement in areas such as minimum wage, holiday pay and statutory sick pay, which is another reason buyers...
QUEENSLAND— A nurse in Australia has been formally reprimanded after admitting he submitted forged documents to Qantas (QF) in an attempt to secure a refund for a non-refundable airline ticket. Th...