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Key Employment Law Updates in 2025
Stay ahead with the latest employment law updates. From HR policies to workplace rights and employee protections, laws are continuously being updated and changed to suit the evolving landscape of the modern workplace.
With the support of our employment law experts, get-to-know the updates that will impact your business in 2025.
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Holiday Pay Reforms – January 2025
As of January 1st, 2025, employers can opt to implement new rules regarding holiday pay for employees. Which alters the way holiday pay is calculated, introducing a method known as ‘rolled-up holiday pay’, applying to any part-year and/or irregular hours workers that you employ.
Employer responsibilities:
While this is not mandatory, In response to this change in the law, you can choose to implement these new rules. If you do so, you should ensure that your holiday pay calculations, payroll processes, policy documentation, and employment contracts are updated to reflect the correct process for holiday accrual and pay.
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.
National Minimum Wage Increases – April 2025
As of April 2025, National Minimum Wage rates for all ages have increased. This includes rate increases for apprentices and workers aged between 16-17 years.
Employer responsibilities:
It is now your legal responsibility to ensure that your employee salaries are reflective of the current rates. Your payroll processes and employee records must be updated if pay has now changed for your workers.
Statutory Sick Pay & Employer NIC Updates – April 2025
You are also now required to pay more in both SSP payments and National Insurance contributions.
Changes to rates additionally come with updates to thresholds, which includes:
NIC employer rates increased from 13.8% to 15%, while the threshold for NICs liability decreased from £9,100 to £5,000 annually.
SSP increased to £118.75 per week.
Statutory rates of pay for maternity, paternity, adoption and shared parental pay have increased to £187.18.
Employer responsibilities:
Again, it is your responsibility to ensure your payroll processes, policies and procedures align with these updates. Making sure that employees are paid accurately in relation to new rates and your NICs are adjusted accordingly.
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.
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Employment Rights Bill
Introduced in October 2024, the major shake-up to employment rights in the UK is anticipated to pass law in mid-2025, with various reforms set to change employment law in the UK.
As an employer, all you can do for now is keep up to date with the latest information from the government and employment law experts. Preparing your business ahead of time is the right way to approach this. Making sure your policies and contracts are accurate and managers are trained accordingly.
How can you stay ahead?
Get advice from HR experts
With the support of employment law experts on your side, you can get the latest and most accurate information you need to be HR compliant.
With BrightAdvice, a team of employment and HR experts can offer you round-the-clock advice for whenever you may need it.
From addressing staffing concerns to answering your queries about the latest updates direct from the UK government—we’re on your side.
Align HR processes with employment laws
By leveraging technology, you can enhance and streamline your processes. Helping you to reduce the risks of compliance issues and out of date HR documentation.
Update policy documents and contracts
Your HR policies, documents and employment contracts are essential pieces of information helping you navigate and ensure compliance with employment laws.
Stay up to date with BrightHR
Get the latest on legislation changes and new employment laws in the UK with support from our team of experts.