Employment Law changes 2025

The Law sign

General – 2025 onwards.

The Worker Protection Act is now in force and all employers are required by law to assess the risks posed within their business and take positive pre-emptive action to prevent the sexual harassment of their workforce.

What else is in the pipe line ?

Raising staff awareness and training managers how to respond in the event of incident or complaint are easy to implement, effective good practice – our courses are in high demand.

Whole Workforce Awareness Training

Training for Managers on Responding to Incidents

January 2025 Employment Law Updates and Changes

New UK Corporate Governance Code:  This updated code applies to commercial companies and closed ended investment funs on listed on the London Stock.  The majority of the 2024 UK Corporate Governance Code comes into effect and will apply to financial years beginning on or after 1 January 2025 (the new provisions relating to risk management and internal controls will come into effect a year later, on 1 January 2026)

New Tribunal rules: came into effect on 6 January 2025.  A direction impacting how employers submit their defences to claims is pending

Collective consultation awards and fire and rehire:  Post 20 January 2025, the penalties for failing to carry out a required collective consultation can be increased by up to 25% if the employer has ignored the relevant Code of Practice, including the Code of Practice on Dismissal and Re-engagement. The current protective award is up to 90 days’ pay to each employee affected

Concrew Training’s courses relating to consultation include:

More Effective Consultation

Practical Consultation

More Effective Individual Consultation

April 2025 Employment Law Updates and Changes

Annual Rate Increases: On 1 April 2025,  include – The National Minimum Wage, National Living Wage, The weekly rates of Statutory Sick Pay, Statutory Maternity Pay, Maternity Allowance, Statutory Paternity Pay, Statutory Shared Parental Leave Pay, and Parental Bereavement Pay.

It is expected that the unfair dismissal compensatory award cap and the ‘Vento bands’ (giving guidance on the level of injury to feelings awards) will increase inline with the above.  Announcements due in February/March, to take effect in April 2025

Employer National Insurance: From 6 April 2025, the rate of employer national insurance will increase from 13.8% to 15%. At the same time the earnings threshold at which employers pay NI will be lowered from £9100 to £5,000.

Neonatal leave and pay: The Neonatal Care (Leave and Pay) Act 2023 is expected to introduce statutory paid leave (12 weeks) for eligible employees whose newborn baby is admitted to neonatal care.

Gender Pay Gap Reporting: 2025 reports are due by 4 April.

Concrew Training’s courses include Gender Pay Gap Reporting

Other Employment Law Developments expected for 2025:

The Employment Rights Bill looks set to completely reshape the current employment law landscape. It sets out significant developments, including in relation to unfair dismissal, fire and rehire, collective redundancies, zero hours (and ‘low hours’) contracts, trade union rights, family leave, among other areas. A number of consultations arising from the Bill are expected this year, which should provide more information on the proposals, and the current thinking is that the Bill will receive Royal Assent in the second half of 2025. However, implementation of most of the changes is not likely until 2026. A key proposed change for employers is the removal of the service requirement for unfair dismissal claims. Ministers say that the right not to be unfairly dismissed will not become a day one right before Autumn 2026.

Concrew Training’s course on employment law covers all the above in more detail