As we step into 2025, businesses, organisations and charities across the UK must prepare for significant updates in employment law and HR practices. At Orchard Employment Law, we understand that staying compliant can be challenging, so we’ve compiled the key changes you need to know to protect your business and support your workforce.
Key Changes in Employment Law for 2025
1. Employment Rights Bill
The Employment Rights Bill introduces a host of reforms to modernise workplace practices, including:
- Flexible Working Requests – Employees can now request flexible working arrangements from day one of employment, requiring employers to assess requests reasonably.
- Parental Leave and Sick Pay – Enhanced rights for parental leave and statutory sick pay, with unfair dismissal protections extended to all employees from day one.
- Zero-Hour Contracts – Restrictions and reforms on zero-hour contracts to improve job stability.
To find out what else might be in the pipeline you can purchase our 90 minute Employment Law Bill November 2024 webinar from our website for £40 at https://orchardemploymentlaw.co.uk/insights-resources/
2. National Minimum Wage Increase
From April 2025, the National Living Wage rises to £12.21 per hour, with substantial increases for younger workers:
- Ages 18-20: £10.00 per hour
- Ages 16-17 and Apprentices: £7.55 per hour
3. National Insurance Contributions
Employers will see changes to National Insurance contributions, impacting payroll planning and costs. Employers should review their budgets and payroll systems accordingly.
4. Anti- Sexual Harassment Training
In October 2024 there was a new legal duty on employers to take all steps to prevent Sexual Harassment. This means businesses should have risk assessments and provide anti-harassment training as a mimimum. At Orchard Employment Law we can help by delivering training and providing the relevant risk assessments and policies. Get in touch to enquire.
5. Allocation of Tips Act 2023
Coming into force in October 2024, this law ensures fair distribution of tips and service charges to employees, particularly affecting the hospitality sector.