1. Employment Rights Bill
In entering 2025, it is clear that UK employment law is set to undergo notable transformations with reforms that will have a potentially substantial impact on both employers and employees. This blog highlights some of the changes to look out for throughout the year:
On 10th October 2024, the Government fulfilled its promise to introduce potential reforms to employment law within 100 days of office. The bill comprises of 28 new reforms across 150 pages. Although the devil will be in the detail over the coming months, some of the key provisions include:
- 'Day One' Employment Rights: Employees will enjoy key employment rights from day one of their employment, such as, protection against unfair dismissal, and the rights to Paternity and Bereavement Leave that will become effective immediately.
- Restrictions on 'Fire and Rehire': Employers will face new restrictions in the controversial practice of dismissing employees and re-hiring them on different terms.
- Addressing Sexual Harassment: Employers will be liable for harassment by third parties and are required to take 'all' reasonable steps to prevent such occurrences.
- Statutory Sick Pay (SSP): The Bill intends to remove the requirement to earn at or above the Lower Earnings Limit while removing the stipulated waiting days (meaning everyone is eligible for SSP from the first day of sickness absence).
- Restrictions on Zero-Hour Contracts: Workers with consistent 'low' hours over a designated period will be entitled to guaranteed hours.
- Flexible Working Changes: Flexible working will become the default option, allowing employees to request arrangements easily. Employers must provide valid reasons for any refusals.
- Pregnancy Protections: Enhanced protections against dismissal are introduced for pregnant employees and those returning from maternity leave. Dismissals within six months of returning will generally be unlawful, with some exceptions.
This Bill is currently under review by the House of
Commons Public Bill Committee, with a report due on 21st January
2025. Please click here to view our blog on the
Employment Rights Bill.
2. Draft Equality (Race and Disability) Bill
It is anticipated that a draft Bill will be published in 2025 to focus on racial and disability equality. It aims to strengthen protections for ethnic minorities and disabled employees, with key proposals including:
- Mandatory Ethnicity and Disability Pay Reporting: Employers with 250 or more employees will be required to report on the ethnicity and disability pay gaps within their organisations.
- Equal Pay Rights: The Bill will ensure that workers are protected from discrimination in pay based on race or disability. Importantly, employers will not be able to use outsourcing services as a way to circumvent these obligations.
3. Neonatal Leave and Pay
The Neonatal Care (Leave and Pay) Act 2023 introduced a new right for parents to take up to 12 weeks' leave and pay if their baby requires neonatal care. The relevant regulations for this new entitlement are expected to be introduced in 2025.
4. National Living and National Minimum Wage Increases
From 1st April 2025, the National Living Wage (NLW) and National Minimum Wage (NMW) will see increases:
- NLW (21+ years): £12.21 (up from £11.44)
- NMW (18-20 years): £10.00 (up from £8.60)
- NMW
(16-17 years & Apprentices under 19): £7.55 (up from £6.40)
5. Right to Switch Off/Disconnect
The Government is expected to introduce a statutory Code of Practice in 2025 giving employees the right to disconnect from work after working hours, except in exceptional circumstances. This right aims to address the challenges of work-life balance in the digital age.
As the UK employment law landscape evolves in 2025, both employers and employees should look out for the key legislative changes noted above. These reforms, particularly the Employment Rights Bill, are poised to shape the future of the workplace. We will continue to monitor these developments and provide updates as they unfold.
