Employment Law News Roundup – 18.11.25

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ACAS Early Conciliation Period Extended To 12 Weeks

From 1 December 2025, the Advisory, Conciliation and Arbitration Service (ACAS) will implement significant changes to its Early Conciliation process. The maximum conciliation period will be extended from six weeks to twelve weeks, as outlined in the Employment Tribunals (Early Conciliation: Exemptions and Rules of Procedure) (Amendment) Regulations 2025. This extension is designed to give parties more time to negotiate and potentially resolve employment disputes before escalating them to an employment tribunal.

Understanding ACAS Early Conciliation

Before most employment tribunal claims can move forward, claimants are required to contact ACAS to initiate Early Conciliation. During this process, ACAS acts as a neutral mediator, assisting both parties in exploring possible settlements outside of an employment tribunal. If no agreement is reached within the conciliation window, ACAS issues an Early Conciliation Certificate, which allows the claimant to proceed to a tribunal.

Currently, this process is capped at six weeks. However, rising demand and increasing case complexity, partly due to more notifications and the growing use of automated systems, have placed significant pressure on ACAS resources. Delays in case allocation are common, with some parties experiencing little to no contact until the final stages of the six-week window.

Why the Change?

The government’s decision to double the conciliation period aims to:

  • Reduce pressure on ACAS staff.
  • Allow more time for meaningful engagement between employers and employees.
  • Increase the likelihood of disputes being resolved amicably without formal tribunal proceedings.

The new 12-week period will apply to cases notified on or after 1 December 2025, and its effectiveness will be reviewed in October 2026 to ensure it remains appropriate for managing case volumes and outcomes.

Impact on Employers and Employees

For employers:

  • Longer periods of uncertainty while conciliation is ongoing.
  • In combination with upcoming changes to tribunal claim time limits, employers may be unaware of potential claims for up to nine months or more, due to administrative and procedural delays.

For employees:

  • More time to negotiate settlements.
  • Reduced procedural pressure and additional space to seek advice or gather evidence before deadlines expire.

Nevertheless, extending the conciliation window alone will not solve systemic issues such as ACAS resource shortages or tribunal backlogs. Without addressing these root causes, the extension might provide only temporary relief rather than a lasting solution.

ACAS’s latest annual report shows that over 117,000 Early Conciliation cases were handled in 2024/25, the highest number since the Covid-19 pandemic. Around 38% of these cases resulted in settlements / resolution. Extending the conciliation period is expected to improve case management by giving ACAS more time to allocate and support cases effectively and to enhance the chances of resolving disputes without the need for formal tribunal proceedings

Disability Pay Gap Persists Despite Modest Progress

Despite some progress, disabled workers in the UK continue to face a significant pay gap compared to non-disabled colleagues. According to new analysis by the Trades Union Congress (TUC), disabled employees earn £2.24 less per hour than non-disabled peers, a shortfall exceeding £4,000 per year for those working full-time.

Scope of the Disability Pay Gap

  • The current disability pay gap stands at 15.5%, a slight improvement from last year’s 17.2%.
  • The gap widens further when considering gender: non-disabled men earn over a quarter more than disabled women.
  • Disabled workers are also more likely to be on zero-hours contracts (4.3% vs. 3.3%), contributing to income instability.

Contributing Factors

Several systemic issues underpin this persistent pay gap:

  1. Employment Conditions: Disabled individuals face higher unemployment rates, which have worsened since before the pandemic.
  2. Job Security: A disproportionate number of disabled workers hold insecure or precarious roles.
  3. Additional Costs: Disabled people face extra monthly expenses averaging £1,224, covering home adaptations, assistive technology, higher energy bills, and specialised dietary needs.
  4. Career Progression: Disabled employees often experience under-promotion and lack adequate support for professional growth.

Policy Responses and Next Steps

The TUC has called for urgent measures, including:

  • Mandatory disability pay gap reporting, similar to gender pay gap requirements, to hold employers accountable.
  • Provisions under the proposed Employment Rights Bill aimed at improving transparency and protections for disabled workers.

Last Updated:  Tuesday, November 18, 2025

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