Get prepared for legal changes in 2025

As the new year rolls in we are looking ahead to identify what changes will be made to employment law over the next 12 months and how these changes will impact both employers and employees.

As expected, following the success of the Labour government in the election last year, the Employment Rights Bill was introduced in October 2024, bringing with it the most proposals we have seen to employment legislation in some time. This means that the significant development and talking point about employment law over the course of 2025 will be the finalisation of this Bill as it moves through parliament. 

With the Bill currently at consultation stage, most of the proposed changes will not come into effect until 2026.

Whilst this may seem a long time away, it will undoubtedly pass quickly and you should therefore use the time to prepare for these changes , plan ahead and make sure that you are ready to comply with the new laws.

Ove the coming months you also have the opportunity to participate in government consultations in respect of the proposed changes that will impact your organisation.

As it stands an employee in a new job has to wait until they accumulate 2 years continuous service before they are entitled to the full range of statutory employment rights.

Under the proposals of the new Bill, employees will be entitled to many more of these rights from day 1 of their employment.

This is the biggest change the government are seeking to introduce, and the current consultation stage will mean these changes will not apply until Autumn 2026, however, this change will affect all employers and therefore employers should be using the time to prepare through policies and budgets for to reflect these changes.

The Bill proposes to introduce the right for an employee to be able to bring a claim for unfair dismissal from the first day of their employment.

By removing the current 2 years’ continuous service requirement for employees, we can expect this will result in an influx of claims in the Employment Tribunal. In anticipation of this however, the Bill does specify that new employees will be subject to a statutory probation period before this change to protection will apply.

We are yet to receive confirmation on the extent of this period, and this will no doubt be fleshed out through consultation but could range between six and nine months.

In an effort to crack down on zero-hour contracts, the Bill proposes to amend them in such a way that they will only really be available to individuals who wish to remain on them.

The Bill will introduce a right to guaranteed hours to reflect the hours regularly worked by the worker over a 12-week period. Workers are not required to accept the guaranteed hours contract, and those who wish to remain on a flexible zero-hour working arrangement can do so.

Whilst there are no immediate changes that employers need to make, you may choose to take this time to proactively review and update any zero-hours contracts and consider if you really need the contract to be zero-hours or can you move to  guaranteed hours?

Another change the Bill proposes, is to amend the entitlement to Statutory Sick Pay and make it a day one right. This will enable employees to claim SSP on their first day of illness.

There are also recommendations to remove the earnings limit, therefore enabling low earners to benefit from the provisions of SSP.

The Neonatal (Leave and Pay) Act 2023 will introduce paid leave for eligible employed parents whose newborn baby is admitted to neonatal care. Those eligible will be entitled to receive 12 weeks paid leave. This will be in addition to their maternity and paternity leave rights.

Despite this legislation reaching Royal Assent back in 2023, it is expected to come into force and take effect from April 2025.

The Paternity Leave (Bereavement) Act 2024 is expected to take effect in 2025, although no specific date has yet been confirmed. 

The Act will remove the 26-week minimum service requirement for fathers and partners to take paternity leave where the mother of the child (or the adoptive parent or intended parent in a surrogacy arrangement) dies shortly after the child’s birth.

This will make paternity leave a “day one” right for bereaved partners.

The government have pledged to eliminate age-related minimum wage bands with a view to bringing the lower national minimum wage in line with the national living wage.

The increases that we have seen to both rates over the past years have been in line with inflation, however in line with the governments objectives, we can expect the national living wage to settle in future years whilst the national minimum wage continues to rise and catch up.

From 1 April 2025 the following changes will apply:

  • National Living Wage (21 years+) will rise to £12.21 per hour
  • National Minimum Wage will rise to £10.00 per hour (This is the biggest jump there has been in one financial year and as above is the first step to aligning this rate with the NLW.
  • The apprenticeship rate (under 18) will rise to £7.55 per hour

Whilst the above gives you a flavour of some changes we are expecting over the course of 2025, they are not the only legal changes we can expect, and it is likely that the government consultation process will make further changes to the current proposals.

Our team are able to assist with a range of enquiries and HR support. If you have any questions in respect of this content or would like further support in keeping up to date with any changes that come into force, please contact us on 01983 897003.

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The information contained in this blog post is provided for guidance and is a snapshot of the law at the time it is written. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.

The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.


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