[UK] Employment Rights Bill and AI adoption contribute to increased job losses

New research has revealed that UK businesses have increased the number of proposed mass dismissal programmes by 5 per cent over the past year, as companies restructure in preparation for the upcoming Employment Rights Bill and the growing adoption of AI, Startups reports.

The data, from law firm TWM Solicitors, found that the number of mass dismissal programmes rose from 3,715 in 2024 to 2025, increasing from 3,456 in the previous year, representing a total of 267,800 proposed job cuts.

The sectors recording the sharpest proportional increase were public administration, health and education, with notified proposals reportedly rising by 19 per cent. The manufacturing sector had a 12 per cent rise, reaching 630 programmes over the year. 

The Employment Rights Bill, originally expected to pass this month, is now stalled between the House of Commons and the House of Lords over ‘day one’ employment rights. The Lords are favouring a six-month threshold instead of immediate eligibility.

Anthony Wilcox - Partner at TWM Solicitors - said, “Under the new legislation… some redundancy exercises are going to become more complex.

“Apart from the additional management cost and time faced by employers, the cost of getting a programme of contract changes or redundancies wrong under the new law will be substantial, so it is logical for employers to move forward with envisaged contract changes or redundancy programmes.”

Source: Startups

(Quotes via original reporting)

New research has revealed that UK businesses have increased the number of proposed mass dismissal programmes by 5 per cent over the past year, as companies restructure in preparation for the upcoming Employment Rights Bill and the growing adoption of AI, Startups reports.

The data, from law firm TWM Solicitors, found that the number of mass dismissal programmes rose from 3,715 in 2024 to 2025, increasing from 3,456 in the previous year, representing a total of 267,800 proposed job cuts.

The sectors recording the sharpest proportional increase were public administration, health and education, with notified proposals reportedly rising by 19 per cent. The manufacturing sector had a 12 per cent rise, reaching 630 programmes over the year. 

The Employment Rights Bill, originally expected to pass this month, is now stalled between the House of Commons and the House of Lords over ‘day one’ employment rights. The Lords are favouring a six-month threshold instead of immediate eligibility.

Anthony Wilcox - Partner at TWM Solicitors - said, “Under the new legislation… some redundancy exercises are going to become more complex.

“Apart from the additional management cost and time faced by employers, the cost of getting a programme of contract changes or redundancies wrong under the new law will be substantial, so it is logical for employers to move forward with envisaged contract changes or redundancy programmes.”

Source: Startups

(Quotes via original reporting)