2025: The year that promises to bring big changes to Employment Law

The Employment Rights bill promises to bring sweeping changes to UK employment law over the next couple of years. However, it is not clear just exactly what changes will take place in the immediate future. We take a look at what changes are definitely being introduced in 2025, and what to look out for throughout the coming year.

What do we know for certain?

• 20 January 2025 - Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment of Schedule A2) Order 2024 comes into force. This allows tribunals to award up to a 25% increase or decrease a protective award where they has been a failure to follow the Statutory Code of Practice on Dismissal and Re-engagement (or any other relevant code). This will penalise employers further where there has been a failure to collectively consult under the Code.
• 1 April 2025 – increase to the National Minimum Wage and National Living Wage comes into force. For those over 21 years of age, employers will be obliged to pay a minimum of £12.21 per hour.

What do we expect?

• April 2025 – it is expected that the Neonatal Care (Leave and Pay) Act 2023 will come into force this month. Subject to certain qualifying criteria, it is expected that parents will be entitled to paid leave where their child is receiving neonatal care. The amount of leave and pay will be set by regulations but is widely expected to be an entitlement to full week’s leave, capped at 12 weeks, that must be taken within 68 weeks’ of the child’s birth. It is likely that pay will reflect the same rate as other types of family leave, and that individuals will have further protections against dismissals, including in a redundancy situation.
• Employment Rights Bill – expected July 2025 onwards, subject to consultation and regulations.
  • It is entirely unclear what is likely to come into force, when.
  • At the earliest, we expect that some of the simpler changes proposed may come into force around July 2025 at the earliest.
  • The government have released a 53 page Amendment Paper on the Employment Rights Bill. The amendments proposed include:
    • Extending the time limit for bringing ALL tribunal claims from 3 months to 6 months. This was widely expected in the original bill and was a notable omission that has now been “corrected”.
    • Changing the definition of an “initial period of employment” (aka the protected probation period) for the purposes of unfair dismissal becoming a day one right. The initial period of employment, to later be set out in Regulations, must be between 3 and 9 months, no longer.
    • Adding menstrual problems and menstrual disorders to the definition of “matters related to gender equality” which employers will be required to produce equality plans on.
    • Clarification that trade unions will not have the right to access workplaces that are also a “dwelling”.
    • A proposal that any clause seeking to prevent a worker from making a disclosure about harassment (including sexual harassment) would render a non-disclosure agreement (often in the form of a settlement agreement) void in full.
    • A clause prohibiting the use of “substitution clauses” in employment, worker or dependent contractor contracts.

Our previous article sets out the broad proposals in the original draft bill, many of which are subject to ongoing consultation and regulations to provide details of their operation. We will continue to keep you updated of the results of any key consultations, draft regulations, and potential implementation dates as soon as they are known. Our team of experts will guide you through what promises to be a year of change – we look forward to working with you!