Employment Law Changes in 2025 - Is Your Business Ready

Employment law in the UK is constantly evolving to reflect societal shifts, technological advancements, and economic changes. As we enter 2025, significant amendments to employment legislation are set to take effect, impacting businesses and employees alike. Staying informed about these updates is crucial to ensuring compliance, avoiding legal disputes, and maintaining a fair and efficient workplace. However, according to our recent survey, 84% of the UK are not aware of these new laws and amendments.

Our guide explores the key employment law changes for 2025, their implications for employers and employees, and the importance of staying up to date. We will also outline steps to take if an employment law dispute arises and how Giambrone and Partners can provide expert legal assistance.

Our guide explores the key employment law changes for 2025, their implications for employers and employees, and the importance of staying up to date. We will also outline steps to take if an employment law dispute arises and how Giambrone and Partners can provide expert legal assistance.

Click on the links below to jump to that section:

• What are the Key Employment Law Changes for 2025

Find out more about the proposed changes coming into force soon

• How Could the New Employment Law Changes Affect Me as an Employer or Employee?

Discover how these new laws could impact your business, whether you are a business owner or an employee

• The Importance of Keeping Up to Date with UK Employment Law

Ensuring you are fully up to date with employment law changes can ensure all legalities are followed

• What Can I Do if I Have an Employment Law Dispute?

If you are involved in an employment dispute, here are the steps you should take

• Employment Law Dispute Help at Giambrone and Partners

Here’s how we can assist

What are the Key Employment Law Changes for 2025?

Several significant changes to UK employment law are expected to take effect in 2025. These updates reflect the evolving needs of the workforce and the increasing emphasis on workers' rights, workplace flexibility, and employer accountability. The key changes include:

Employment Rights Bill Consultations (October 2024)

• The bill introduces 28 reforms aimed at increasing pay, productivity, and job security as part of the government's Plan to Make Work Pay. Key measures include removing the two-year qualifying period for unfair dismissal and granting day-one rights for paternity, parental, and bereavement leave.
• Other reforms include making flexible working a default right, banning most fire and rehire practices, and allowing workers on regular hours to request guaranteed contracts. Consultations begin in 2025, with major changes expected in 2026. In our 2025 survey, 50% of respondents listed this amendment as one they were most looking forward to.

Draft Equality (Race and Disability) Bill

• The bill strengthens equal pay rights for ethnic minorities and disabled workers, simplifying claims and ensuring clarity. Large businesses (250+ employees) must report ethnicity and disability pay gaps.
• Similar to existing sex equality clauses, new provisions will cover ethnicity and disability, making it easier for workers to challenge pay discrimination.

Statutory Code of Practice for the Right to Switch Off

• The government plans to introduce a right to switch off through a statutory code of practice rather than legislation, ensuring remote work does not create a 24/7 work culture.
• The timeline for implementation is unclear, but it could be introduced in 2025. Employers will have flexibility in applying the code to suit their workforce needs. The majority of your survey respondents (54%) listed this as the law they were most looking forward to.

Neonatal Care (Leave and Pay) Act 2023

• From April 2025, parents of hospitalised newborns (up to 28 days old, with a stay of at least seven days) can receive up to 12 weeks’ paid leave.
• Employees must have worked for at least 26 weeks and earn £123+ per week to qualify. The leave must be taken within 68 weeks of the baby’s birth.

National Minimum Wage Increase (April 2025)

• The National Living Wage will rise to £12.21 per hour (+£0.77), with significant increases for younger workers: £10.00 for 18-20-year-olds (+£1.40) and £7.55 for 16-17-year-olds (+£1.15).
• This aligns with government targets and narrows the gap between youth wages and the adult rate, preparing for future adjustments. 48% of survey respondents were interested in this increase.

Statutory Payments Increase (April 2025)

• Statutory Sick Pay (SSP) will rise to £118.75 per week, while maternity, paternity, adoption, and bereavement pay will increase to £187.18 per week.
• The lower earnings limit for eligibility will increase to £125 per week, though maternity allowance remains at £30. These changes will impact businesses, especially those with tight profit margins.

National Insurance Increase for Employers (April 2025)

• Employer National Insurance (Class 1) will rise from 13.8% to 15%, and the secondary NI threshold will drop from £9,100 to £5,000, increasing tax burdens.
• To offset this, the employment allowance will increase from £5,000 to £10,500, benefiting smaller businesses. These changes aim to generate £24bn in 2025-26.

Pensions Scheme Bill (2025)

• Key reforms include automatic consolidation of small pension pots, improved value-for-money rules, and commercial defined benefit (DB) superfunds to enhance financial security.
• Pensions dashboards launching in 2025 will allow individuals to view all pension savings in one place, with initial access limited to large schemes before a full rollout.

How Could the New Employment Law Changes Affect Me as an Employer or Employee?

The upcoming legal changes will have far-reaching implications for both employers and employees, influencing workplace policies, contractual obligations, and dispute resolution practices.

For Employers:

• Increased Compliance Obligations – Businesses must review and update employment contracts, policies, and HR procedures to ensure compliance.
• Potential Cost Increases – Higher statutory pay could result in additional financial commitments.
• Greater Risk of Litigation – Strengthened workplace harassment and discrimination protections could lead to an increase in claims if compliance is not met.
• Need for More Flexible Workplace Practices – Employers must adapt to accommodate the new flexible working regulations and gig economy protections.

For Employees:

• Enhanced Workplace Rights – Stronger protections against unfair treatment and workplace discrimination.
• More Flexible Work Arrangements – Greater access to remote work and adjusted working hours.
• Improved Work-Life Balance – Enhanced parental leave rights and protections against redundancy ensure greater security for working parents.

If you believe your employer or employees are not following the new laws or amendments, consider seeking expert legal advice from one of our employment lawyers at Giambrone and Partners.

The Importance of Keeping Up to Date with UK Employment Law

Remaining informed about employment law changes is crucial for businesses and employees alike. Non-compliance can lead to significant legal risks, financial penalties, and reputational damage. IN our 2025 survey, we found that 77% of respondents would not know what to do if their employer/employee failed to abide by these laws. Key reasons to stay updated include:

• Legal Compliance – Ensuring all policies and contracts align with new laws avoids potential litigation.
• Workplace Efficiency – Proactive adaptation to new legal frameworks enhances business operations and employee satisfaction.
• Protection Against Claims – Being aware of legal requirements helps employers mitigate risks associated with tribunal claims and penalties.
• Fair and Ethical Employment Practices – Staying informed fosters a culture of fairness, reducing the likelihood of workplace disputes.

Employers should consider regular training, legal consultations, and HR audits to ensure they remain compliant with evolving regulations.

What Can I Do if I Have an Employment Law Dispute?

Employment disputes can arise due to a variety of issues, including unfair dismissal, discrimination, contract breaches, or wage disputes. If you are facing an employment law dispute, taking the following steps is essential:

For Employers:

• Review Internal Policies – Ensure workplace policies align with legal standards and address the dispute accordingly.
• Engage in Mediation – Attempt to resolve conflicts internally through mediation or negotiation before escalating.
• Seek Legal Advice – Consult employment law experts to navigate disputes and ensure compliance with legal obligations.
• Prepare for Potential Tribunal Claims – If internal resolution fails, be prepared for employment tribunal proceedings and ensure all documentation is in order.

For Employees:

• Understand Your Rights – Familiarise yourself with employment laws and workplace policies that apply to your situation.
• Communicate With Your Employer – Address concerns formally through internal grievance procedures.
• Seek Legal Guidance – Employment law solicitors can assess your case and provide strategic legal advice.
• Consider Employment Tribunal Action – If disputes cannot be resolved internally, an employment tribunal claim may be necessary.

Employment Law Dispute Help at Giambrone and Partners

At Giambrone and Partners, we specialise in employment law, offering expert legal services to both employers and employees navigating complex workplace disputes. Our team of experienced solicitors provides:

• Employment Contract Review and Drafting – Ensuring legally compliant contracts and workplace policies.
• HR Compliance Support – Advising businesses on employment law changes and risk mitigation.
• Dispute Resolution and Mediation – Offering alternative dispute resolution strategies to avoid tribunal proceedings.
• Employment Tribunal Representation – Providing expert legal representation for claims involving unfair dismissal, discrimination, redundancy, and wage disputes.
• Whistleblowing and Workplace Harassment Claims – Protecting employees' rights while ensuring employers meet their legal obligations.

If you require legal assistance regarding employment law changes or workplace disputes, we are here to help. Contact us today for expert legal advice and tailored solutions for your business or employment concerns.