As we navigate through 2025, the UK’s employment law landscape is experiencing significant changes that HR professionals must carefully consider to ensure compliance and promote a fair workplace. Here are a couple of changes that are due to come in to effect.
NATIONAL MINIMUM WAGE AND NATIONAL LIVING WAGE INCREASES
Effective from 1 April 2025, the National Living Wage for individuals aged 21 and over has risen by 6.7%, from £11.44 to £12.21 per hour. Younger workers have also seen substantial increases:
- Aged 18 to 20: £10.00 per hour
- Aged under 18: £7.55 per hour
- Apprentices: £7.55 per hour
These adjustments reflect the government’s commitment to ensuring fair compensation for all workers.
EMPLOYMENT RIGHTS BILL
The Employment Rights Bill, introduced to Parliament on 10 October 2024, aims to modernise the UK’s employment framework. Key provisions include:
Ban on Exploitative Zero-Hours Contracts: Employers are now required to offer guaranteed hours to zero-hours workers and those on low guaranteed hours who regularly work beyond them.
Ending ‘Fire and Rehire’ Practices: The bill prohibits the practice of dismissing and rehiring employees on less favourable terms without proper consultation.
Day-One Employment Rights: New hires now have immediate rights to paternity, parental, and bereavement leave, as well as protection from unfair dismissal.
STATUARY SICK PAY
The bill also strengthens statutory sick pay by removing the lower earnings limit and eliminating the waiting period before sick pay commences. This ensures that all workers have access to financial support during periods of illness.
TIPPING LEGISLATION
As of 1 October 2024, new laws mandate that workers receive 100% of their tips, gratuities, and service charges, promoting fairness in industries where tipping is customary.
The evolving employment law landscape in 2025 presents both challenges and opportunities for HR professionals. By staying informed and adapting to these changes, organisations can ensure compliance, promote fairness, and enhance employee satisfaction. Proactive engagement with these developments will not only mitigate legal risks but also contribute to a more positive and productive workplace culture.
For further help and guidance on the employment law changes that are due to change, get in touch with a member of our team at hello@hellochief.co.uk.
