What’s Coming in 2025
Following on from our year in review, we now look ahead to 2025 to see what’s to come for employers. Whilst some developments are already settled and we know when they will take effect, there are others that we do not yet have a firm date for.
Key Employment Law Changes for 2025
January 2025: Holiday Pay and Dismissal Code Changes
Two significant changes are coming into effect in January:
- Employers with a January-March annual leave year can now implement rolled-up holiday pay for part-year and irregular hours workers.
- From 20 January 2025, the 25% uplift for failing to comply with the statutory Code of Practice on Dismissal and Re-engagement will extend to protective awards. Employers proposing changes to employee terms via dismissal and re-engagement affecting 20 or more employees must properly consult or face protective awards of up to 90 days’ pay, with an additional 25% tribunal uplift for non-compliance.
April 2025: New Statutory Rates
Several statutory rates will increase from April:
- National Living Wage (over 21s) rises to £12.21
- National Minimum Wage (18-20 years) increases to £10.00
- National Minimum Wage (16-17 years and apprentices) rises to £7.55
- Statutory Sick Pay increases to £118.75 per week
- Statutory Maternity Pay and family-related leave pay rises to £187.18 weekly
- Lower Earnings Limit increases to £125 per week
Neonatal Care Leave and Pay
April 2025 is expected to see the introduction of neonatal care leave and pay, following the Neonatal Care (Leave and Pay) Act 2023. This will give employees time off when a baby under their responsibility requires hospital neonatal care. The specific regulations are yet to be published but are anticipated to be in force by April.
May 2025: Real Living Wage Deadline
Employers accredited by the Living Wage Foundation must implement the new Real Living Wage rates by 1 May 2025:
- £12.60 across the UK
- £13.85 in London
Additional Changes Expected in 2025
Paternity Leave (Bereavement)
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.
Children’s Employment Reforms
The Children’s Wellbeing and Schools Bill, introduced in December 2024, proposes several changes to child employment laws in England:
- Mandatory work permits for all employed children under compulsory school age
- Extended Sunday working hours to match Saturday allowances
- Permission to work up to one hour before school and until 8pm (previously 7pm)
Looking Ahead: The Employment Rights Bill
Introduced in October 2024, the Employment Rights Bill outlines significant reforms across five key areas:
- Enhancing existing rights
- Pay reforms
- Time off provisions
- Contract modifications
- Equality and harassment measures
While these changes are unlikely to take effect until 2026, the Bill includes 28 commitments from the Government’s Plan to Make Work Pay. Additional proposals outside the Bill include a new right to disconnect and menopause guidance for employers.
What Should Employers Do Now?
Employers should start planning how to implement these confirmed changes while keeping informed about developing legislation. Key actions include:
- Reviewing holiday pay systems for part-year and irregular hours workers
- Preparing for new statutory rate increases in April
- Planning for the introduction of neonatal care leave
- Monitoring the progress of the Employment Rights Bill
- Ensuring compliance with Real Living Wage requirements if accredited
We’ll continue to update you as more details emerge about these important changes to employment law. Subscribe to our mailing list so you never miss an update!
