Employment Law Changes – What’s Already Changed, What’s Next, and How to Prepare
UK employment law is evolving at pace. A number of important legal changes have already come into force, with further updates confirmed for 2025 and broader reforms expected to follow. Taken together, these changes signal a continued push by policymakers to create more inclusive, fair, and flexible workplaces.
For employers, this presents both a risk and an opportunity. On the one hand, failing to keep up could lead to compliance gaps, reputational issues, or even tribunal claims. On the other hand, those who stay ahead will be better placed to modernise policies, support their workforce, and strengthen their position as an employer of choice.
This update outlines:
Recent legal changes that should already be in effect
Confirmed developments taking place in 2025
Proposed reforms under the Employment Rights Bill
Practical steps you should take now
Legal Changes Already in Force
Several employment law reforms came into effect in April 2024. If you have not yet reviewed your policies or communicated updates to staff, we recommend doing so as soon as possible.
Flexible Working
From April 2024, employees have the right to request flexible working from day one of employment. They can now make two requests per year, and employers must respond within two months. This requires updates to internal procedures and training for line managers.
Carer’s Leave
Employees are now entitled to one week of unpaid carer’s leave each year to support dependants with long-term care needs. This is a statutory right from day one of employment.
Paternity Leave
Fathers and partners can now take paternity leave in two separate one-week blocks, and can use the entitlement at any time during the first 12 months after the child’s birth or adoption.
Redundancy Protection
Pregnant employees and those returning from maternity, adoption or shared parental leave are now protected from redundancy for up to 18 months after the child’s birth or adoption placement. This requires employers to give these employees priority status in any redundancy selection process.
New Anti-Harassment Duty
From October 2024, employers will be under a statutory duty to take reasonable steps to prevent sexual harassment in the workplace. The Equality and Human Rights Commission will have enforcement powers. This will require updated training and proactive risk assessments.
Confirmed Changes for 2025
A number of further changes are already legislated and will come into effect during the course of 2025.
Rolled-Up Holiday Pay
From January 2025, employers can lawfully use rolled-up holiday pay for workers with irregular hours or part-year contracts. Holiday can be calculated at 12.07% of hours worked. Employers must clearly set out the arrangement in writing.
Fire and Rehire Code of Practice
From January 2025, employers who change employment terms via dismissal and re-engagement must follow a statutory Code. Failure to follow the Code could lead to a tribunal award uplift of up to 25%. The Code places emphasis on consultation and genuine business need.
National Minimum Wage
From April 2025, the National Living Wage (23+) will increase to £12.21 per hour. Rates for younger workers and apprentices will also rise. Employers should review pay structures and budgets accordingly.
Statutory Payments
Also from April 2025, the following rates will apply:
Statutory Sick Pay: £118.75 per week
Statutory Maternity, Paternity, Adoption and Shared Parental Pay: £187.18 per week
Lower Earnings Limit: £125 per week
Neonatal Care Leave
From April 2025, parents whose baby requires neonatal care will be entitled to up to 12 weeks of additional leave, paid if eligible. This new statutory right will require changes to leave policies and payroll systems.
Proposed Reforms: The Employment Rights Bill
The Employment Rights Bill, expected to progress through Parliament in 2025, could introduce more substantial reforms, including:
Day-one rights for unfair dismissal, sick pay, and parental leave
Introduction of standardised probation periods
Making flexible working the default position for all jobs
Reforms to statutory sick pay, including removing the waiting period and making it earnings-based
A right for zero-hours workers to request guaranteed hours after 12 weeks of regular work
Statutory leave for miscarriage before 24 weeks
Enhanced protections against dismissal for parents and carers
Wider pay gap reporting obligations (ethnicity and disability)
A new enforcement body: the Fair Work Agency
Though not yet law, many of these proposals enjoy cross-party support and align with long-term policy trends. Employers should begin considering how these changes may affect workforce planning and internal processes.
What Employers Should Be Doing Now
In light of the above, we recommend the following immediate actions:
Review and update employee handbooks, policies, and employment contracts
Train managers on new rights, especially around flexible working and redundancy
Check that payroll systems are prepared for new statutory rates
Update risk assessments and prevention strategies in line with new anti-harassment duties
Audit diversity and pay data in anticipation of broader reporting requirements
Review processes for changing terms and conditions, particularly where fire-and-rehire may be considered
How We Can Help
We work with clients across all sectors to ensure they stay ahead of the law, while building fairer and more effective workplaces. Our support includes:
Contracts and Handbooks – Are they up to date with the law?
HR Policies – Especially for flexible working, parental leave, and redundancy
Manager Training – Do your leaders know the new rules?
Payroll and Systems – Are statutory rates and holiday accrual methods updated?
Diversity and Inclusion Strategy – Especially in light of pay gap expectations
Employee Communications – Clear and timely updates help maintain trust
If you would like to discuss your organisation’s readiness for these changes, we would be pleased to arrange a consultation or carry out a compliance review.
