Happy New Year! (Hopefully, it's still acceptable to wish this in mid-January?!) It’s time to swap mince pies for meeting notes and look ahead to what 2025 has in store for employers. With wage hikes, new parental rights, and consultations galore, 2025 is shaping up to be a year of transformation in employment law. But don’t worry — we’re here to help you navigate the updates, dodge the pitfalls, and keep your workplace ahead of the curve.

1. Employment Rights Bill: Change is Coming (Slowly)

The long-awaited Employment Rights Bill is introducing 28 proposed reforms. However, most of the changes are not expected to come into effect until 2026. Key highlights include:

• A “day one” right against unfair dismissal (expected by Autumn 2026).
• Major changes to redundancy and “fire and rehire” practices.
• Guaranteed hours for zero- and low-hours workers.
• Stronger rights to request flexible working.

Expect consultations galore in 2025, with topics like pay reporting and the “right to disconnect” likely to take the stage. Read more in our blog Employment Rights Bill. 

2. Minimum Wage Changes

April 2025 brings substantial National Minimum Wage and National Living Wage increases. With these rises (along with the recently announced increases to National Insurance), employers may feel the squeeze. Entry-level salaries creeping closer to managerial pay could also shake up your pay bands. Penalties and public naming for non-compliance aren’t worth the risk, so review your structures now!

3. Neonatal Leave: Tiny Babies, Big Rights

From April, the Neonatal Care (Leave and Pay) Act 2023 grants 12 weeks of extra leave and pay for parents with babies in neonatal care. A compassionate step forward, it’s a good reminder to refresh your family leave policies.

4. Paternity Bereavement Leave

The Paternity Leave (Bereavement) Act 2024 could be on the horizon this year, offering bereaved fathers and partners up to 52 weeks of leave. While its timing is uncertain, this represents a significant move towards more inclusive and supportive workplaces.

5. AI in the Workplace: Not Just Sci-Fi

AI is here, no longer seen as futuristic fiction. With businesses increasingly relying on algorithms for recruitment and performance, regulatory scrutiny is mounting. Ensure your AI tools aren’t unintentionally discriminating — fairness is key, and any time or money saved by using AI may well be overshadowed by that lost in defending a discrimination claim. This is discussed in more detail in our blog: Navigating the AI-sles: A Guide for Employers

6. Equality Laws: Broadening the Scope

The anticipated Equality (Race and Disability) Bill could mandate ethnicity and disability pay reporting for larger employers. Transparency and equity are the goals, with consultations expected soon, so get ready.

7. Sexual Harassment Prevention: Still in the Spotlight

The duty to take reasonable steps to prevent sexual harassment remains a priority, as discussed in our The Harrods Scandal & the Duty to Prevent Sexual Harassment blog. With risk assessments, enhanced training, and initiatives underway, now’s the time to ensure your policies are actively helping — not just gathering dust. 

8. Menopause Awareness: A Hot Topic

After gaining momentum in 2024, and discussed in our blog Pause to think about menopause, menopause awareness will likely stay in focus. Expect further guidance to help employers create inclusive workplaces supporting employees through this life stage.

What Should You Do Now?

If this feels overwhelming, don’t panic. Think of 2025 as an opportunity to polish up your HR practices. Start by reviewing policies, brushing up on training, and keeping the right legal advice to hand.

If you require any help or assistance regards this topic or anything else employment law related, please contact our Employment Law Team