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From confirmed changes and additions to UK employment legislation in 2025, to potential reforms we may see introduced, we’ve provided a round up for businesses.
Every effort has been taken to ensure this information is accurate and correct at the time the article was published, but as can be expected the government may adjust timescales during 2025 as plans progress.
2025 legislative changes/updates
The following information provides details of planned changes to UK employment legislation.
National Living Wage (NLW)
2025 will see an increase to the National Living Wage, which employers must pay employees who are 21 years or older. The NLW rate will change from the existing £11.44 per hour, to £12.21.
This will come into effect on 1st April.
National Minimum Wage (NMW)
In addition, the National Minimum Wage that is applicable to employees aged between 18 and 20 years old, will also increase. With NMW changing from £8.60 to £10.00. The new rate for employees under 18 years will be £7.55, and Apprentice wage will increase to £7.55 as well.
This will come into effect on 1st April.
Statutory Sick Pay (SSP)
Changes will also be enforced for Statutory Sick Pay, which will increase from £116.75 to £118.75 per week.
This will come into effect on 6th April.
Employers National Insurance Contributions (NICs)
Businesses will also need to bear in mind two changes that will be implemented to the Employers National Insurance Contribution. Firstly, the rate payable will increase from 13.8% to 15%. There will also be fall in the threshold at which Employers need to start paying NICs for employees. Where currently it applies from £9,100, this will now change to £5,000.
This will come into effect on 6th April.
Parental support
Changes are also planned for the prescribed statutory rates for maternity, paternity, adoption, shared parental leave and parental bereavement. This pay will increase from £184.03 to £187.18 per week.
This will come into effect on 6th April.
Neonatal Care (Leave and Pay) Act 2023
The Neonatal Care Act will permit employees with children receiving neonatal care to receive up to 12 weeks of paid leave entitlement per year.
This will come into effect in April.
Paternity leave
In the difficult circumstances where a child’s mother, or employee’s partner in the case of adoption, passes away, The Paternity Leave (Bereavement) Act 2024 removes the need for an employee to have completed six months of continued service before they are eligible for paternity leave. In a further planned change the rule preventing partners who have already taken shared parental leave from taking paternity leave will no longer apply in these situations. Furthermore, if both the mother and child pass away, the bereaved partner will still be entitled to paternity leave, even though its original purpose will no longer apply.
This is expected to come into effect in April, however the proposed regulations have not yet been published.
The Employment Rights Bill 2024
Although not planned for implementation until 2026, several consultations are expected to take place as the finer details of the Employer Rights Bill is determined.
Flexible working – Requiring employers to agree to flexible working requests unless they can show that it is ‘unreasonable’. If denied, the ground for refusal must be disclosed, together with an explanation of why the employer feels it is reasonable to refuse the request.
Entitlements to leave – Removing the qualifying period for paternity and ordinary parental leave. Providing rights from day one.
Trade unions – Imposing an employer duty to provide a written statement to employees to acknowledge their right to join a trade union. For new employees, providing this alongside the section 1 statement of conditions of employment. In addition to repealing parts of the Trade Union Act 2016 to set new rights to access trade unions.
Zero-hour contracts – Legally requiring employers to offer guaranteed hours, reflecting the regular hours employees will work. If they wish however, the employee will be able to continue with a zero-hour contract.
Fire and rehire– Removing the ability for businesses to fire and rehire an employee under new terms of employment. In the proposed changes where an employer dismisses an employee because they will not accept the new terms of employment, this will automatically constitute unfair dismissal. Exemptions will be drafted around the financial inability of an organisation.
Unfair dismissal– Where currently unfair dismissal claims cannot be made against a company unless the employee has worked there for two years, a new change intends to bring in these rights from day one.
Dismissal during pregnancy and following statutory family leave – Granting greater protection for pregnant employees by extending their dismissal protection. In addition to extending these rights to those returning from family leave and maternity leave. The new proposed rules will prevent employers from unlawfully dismissing a pregnant employee or someone within six months of returning from statutory family leave or maternity leave.
Managing legislative change within your business and supply chain
Whether you hire workers direct or use a recruitment agency to support your operations, it’s crucial that you have robust processes in place to manage compliance.
Our sister business Linx, part of the NRL Group, providing organisations with recruitment supply chain auditing solutions to help them assess how legislation is managed within their agencies, whilst highlighting any areas of concern.