UK Employment Law Updates in 2025

Prepare for 2026

As 2025 comes to an end, we are looking ahead to some of the big changes incoming in 2026.

Thanks to updates from the Autumn Budget, we now know the new wage standards for April 2026 onwards.

How your business can stay ahead

As with any changes to pay, it is essential to get your payroll in order. This means adjusting hourly rates for employees currently receieving the National Minimum Wage or National Living Wage. With the support of a CIPP qualified payroll team, you don't have to worry about payroll headaches when the new wage standards come into effect.

Immigration updates for workers from overseas

Changes to immigration laws will affect employers who wish to hire employees from abroad using a Skilled Worker Visa and Adult Social Care Visas. Updates include:

• The list of qualifying jobs for the Skilled Worker Visa will be shortened. Making it harder for employers to sponsor and employ workers from overseas. The new threshold requires qualifying job roles to be skilled at RQF 6 (degree level or above).
• Employers can no longer hire new adult social care workers from abroad since 22nd July 2025. The Government decided to close this visa route to new applicants.
  
• The general salary threshold is now £41,700 for most new applications, however some exceptions apply. In reagrd to the education and healthcare sectors, separate pay scales are in place for applicants.
• Starting January 2026, English language requirements will also change, increasing the requirement to a level B2, equivalent to A-Level.

It's important to stay aware of changes to employment law and immigration requirements in the UK. As an employer you have a responsibility to ensure any job applicants you hire have a right to work in the UK.

Protective Awards Adjustments – January 2025

In 2025 employment tribunals now have the authority to alter protective awards up or down by up to 25%, if employers are found to have unreasonably failed to comply with the statutory Code of Practice relating to dismissal and re-engagement of workers.

Employer responsibilities:

As an employer this does not have a huge impact on the day-to-day running of your business, but you should be aware that compliance with the ACAS Code will ensure you avoid potentially hefty financial penalties.

Neonatal Care Leave – April 2025

With the latest updates to the law, employees responsible for a newborn requiring neonatal care will have the right to Statutory Neonatal Care Leave from their first day of employment.

Employer responsibilities:

You will need to update your knowledge on the law, ensuring that you know how to handle this situation if an employee is caring for a child receiving neonatal care.