Employment Law Changes in 2025
17th February 2025
What Organisations and Staff Need to Know
Author: Angela Peacock, HR and Recruitment Assistant
It’s essential for organisations to stay ahead of the curve with the latest employment law updates. From increased wages to enhanced worker protections, this year brings a host of changes that will impact every workplace in the UK.
To help you navigate these updates, we’ve outlined the most significant changes and what they mean for your organisation.
National Living Wage (Minimum Wage) Increases
Effective from 1 April 2025
Wage rates will rise as follows:
| Previous | April 1st 2025 | |
|---|---|---|
| National Living Wage (ages 21+) | £11.44 | £12.21 |
| Ages 18 – 20 | £8.60 | £10.00 |
| Ages 16 – 17 and Apprentices | £6.40 | £7.55 |
Real Living Wage
Effective from May 2025
Whilst not a legal change, employers signed up to pay the Real Living Wage must increase pay to £12.60 in the UK, (£13.85 in London), by 1 May to retain their accreditation from the Living Wage Foundation.
SSP and Family Payment Rates
Effective from April 2025
New rates for Statutory Maternity Pay, Paternity Pay, Shared Parental Pay, Adoption Pay, Maternity Allowance, and Statutory Parental Bereavement Pay will be updated and effective from April 2025.
Lower Earnings Limit increases to £125 per week.
| Previous | April 1st 2025 | |
|---|---|---|
| SSP | £116.75 | £118.75 |
| Maternity Pay | £184.03 | £187.18 |
| Paternity Pay | £184.03 | £187.18 |
| Shared Paternity Pay | £184.03 | £187.18 |
| Adoption Pay | £184.03 | £187.18 |
| Maternity Allowance | £184.03 | £187.18 |
| Statutory Parental Bereavement Pay | £184.03 | £187.18 |
Holiday Pay
Already introduced since January 2025
Employers with a January-March annual leave year can now implement rolled-up holiday pay for part-year and irregular hours workers.
Neonatal Care Leave and Pay
Expected from April 2025
Employees with a minimum of 26 weeks’ service will be entitled to up to 12 weeks of paid leave if their child requires neonatal care. This provision is expected to commence in April 2025.
Dismissal Code Changes
Already introduced since 20 January 2025
The 25% uplift for failing to comply with the statutory Code of Practice on Dismissal and Re-engagement will now extend to protective awards. Employers who are proposing changes to employee terms, via dismissal and re-engagement affecting 20 or more employees, must properly consult. If not, they face protective awards of up to 90 days’ pay, with an additional 25% tribunal uplift for non-compliance.
Paternity Leave (Bereavement)
Likely to come into effect in April 2025
Following the Paternity Leave (Bereavement) Act 2024, new regulations are expected by April 2025. These will grant fathers and non-birthing partners access to paternity leave if the mother or adoptive parent dies, potentially offering up to 52 weeks of leave from day one of employment.
Employment Rights Bill
Still undergoing consultation – dates yet to be confirmed. The Bill proposes:
Changes to Zero Hour Contracts
The Employment Rights Bill will ensure that workers have:
- A guaranteed minimum number of hours
- A right to a contract that reflects the number of hours regularly worked
- Reasonable notice of change in shifts with proportionate compensation available for cancelled or shortened shifts – providing them with more predictable income and better working conditions.
Unfair Dismissal being a day one right
Expected Autumn 2026 at the earliest
Changes to Fire and Rehire
Undergoing consultation
The practice to ‘fire and rehire’ will only be allowed if essential for business survival and must follow strict procedures. A dismissal as a result of an employer seeking to vary the terms of a contract will be unfair unless the variations are due to financial difficulties, or where the variation cannot be reasonably avoided. Clarification of when these exemptions will apply will be critical.
Flexible Working Rights
Implemented in 2024
Changes made last year now allow flexible working rights to become a day one right. Staff are now entitled to make two flexible working requests a year, instead of the previous one.
Worker Protection
(Amendment to the Equality Act 2010) Act 2023
From October 2024, employers must prove that they have put reasonable measures in place to prevent Sexual Harassment.
Read our blog detailing the full changes and what is expected from employers.
National Insurance Implications
Employers’ National Insurance contributions on salaries above £5,000 will rise to 15% in 2025, as part of broader government efforts to raise £40 billion in taxes. This increase will impact businesses of all sizes.
Read more on how changes to National Insurance are expected to affect voluntary sector organisations.
Fair Allocation of Tips
Implemented in October 2024
The Employment (Allocation of Tips) Act, ensures that tips, gratuities, and service charges are allocated fairly to workers. If your business relies on tipping, this is a critical change.
PVG Checks
Expected April 2025
Important changes to PVG checks will affect charity organisations working with children or protected adults.
- PVG scheme membership will become mandatory from 1st April 2025, meaning all staff and volunteers in regulated roles must legally be members. A three-month grace period has been allocated.
- The term “regulated work” will change to “regulated roles,” and PVG membership will move from a lifetime model to a renewable, five-year membership commencing April 2026.
- Additionally, disclosure levels will be simplified into two categories instead of the current system.
- From September 2024, local authorities will gain new referral powers
- By late 2025, Disclosure Scotland may impose conditions on members under consideration for listing, strengthening safeguarding measures.
Charities must ensure their staff and volunteers comply with these changes to avoid legal issues and maintain safe practices.
Read more detail of these changes in an overview from Disclosure Scotland. They also offer free training courses on the above changes – visit them on Eventbrite.
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