Employment Law Update: April 2025

With several key employment law changes in the news and growing concerns from employers for what this means in practice, in this update we give an overview of what's imminent and take a look further afield to future changes predicted for 2026.

A key point for reference is that in general, changes to legislation affecting employment have two common introduction dates. This means that 'usually' we'll only see changes introduced in April and October providing us with some comfort that we'll have warning each year.

It's predicted that we'll not see the majority of changes currently being discussed in parliament until April 2026 at the earliest. 

The main change is that employers now have a proactive duty to prevent sexual harassment in the workplace.

In a nutshell:

• Employers must take 'reasonable steps' to prevent harassment.
  
• This includes incidents involving third parties such as customers and clients.
  
• The Equality and Human Rights Commission (EHRC) has a detailed guide on employer expectations (read it here).

What action do you need to take?

• Make sure that you have a policy covering Dignity at Work and it specifically includes the prevention of sexual harassment.
  
• Conduct a sexual harassment risk assessment.
  
• Provide training for managers and employees on the prevention of sexual harassment and how to complain.
  
• Review your practices regularly and ensure they remain compliant with the EHRC 8-step guide.
  

If you'd like to discuss what's the right approach for your business and how I can support, please let me know! 

Several well-publicised employment law changes take effect in April 2025, including increases to the National Minimum Wage, Employer National Insurance Contributions (NICs) and Statutory Sick Pay.

At a glance:

National Minimum Wage Increases (from 1 April 2025):

• Ages 21 and over: £12.21 per hour
  
• Ages 18-20: £10.00 per hour
  
• Ages 16-17 and apprentices: £7.55 per hour

Employer National Insurance Contributions (from 6 April 2025):

• Employer NICs increase from 13.8% to 15%.
  
• The NIC threshold lowers from £9,100 to £5,000 per year.

Statutory Sick Pay & Family-Related Pay Increases (from 6 April 2025):

• Statutory Sick Pay (SSP): £118.75 per week
  
• Statutory Maternity, Paternity, Adoption & Shared Parental Pay: £187.18 per week

New: Neonatal Care Leave (from 6 April 2025)

There's also a less well advertised new right to Neonatal Care Leave.This day one right is expected to benefit around 60,000 new parents and provide up to 12 additional weeks leave.

In a nutshell:

• Parents are entitled to Neonatal Care Leave from day one of employment.
  
• This applies when a newborn is admitted to neonatal care within 28 days of birth for at least 7 days of continuous care.
  
• The leave is in addition to maternity, paternity or other parental leave.
  
• Pay is at the usual statutory family leave rates (£187.18 per week or 90% of earnings).

What action do you need to take?

• If you have a family leave policy, include this new entitlement.
  
• There's no legal requirement to have a policy, but it's good practice.
  
• Ensure managers are aware so they don't mistakenly refuse a request.
  
• Keep an eye out for employees who might qualify for this leave.
  
• Contact me if you have any queries and we can work through it together! 
  

The Employment Rights Bill is currently progressing through Parliament. If enacted, it will bring major changes to employment law.

Here's a summary of main proposals causing discussion for employers:

Unfair Dismissal Protections: The two-year qualifying period for unfair dismissal claims may be removed, giving employees immediate protection from dismissal. Indications are that there will be a statutory probationary period process providing some protection in the early stages of employment

Guaranteed Hours: Applicable to zero hours workers (and potentially agency workers) there will be an obligation for employers to give reasonable notice of shifts and offer 'guaranteed hours' for those working regularly.

Miscarriage Bereavement Leave: If introduced, mothers and their partners will be given the right to two weeks of bereavement leave where there has been a miscarriage before 24 weeks of pregnancy.

Restrictions on Fire and Rehire Practices: New measures may limit employers' ability to dismiss staff only to re-employ them on worse terms unless where the business is in extreme financial distress.

Strengthening SSP for employees: Proposed changes include the removal of the qualifying earnings threshold for SSP making this available to all employees regardless of earnings, and the removal of the current 3 unpaid 'waiting days' for payment of SSP.

What action do you need to take?

• Don't panic - there's nothing urgent for 2025!
  
• There's little we can do at the moment other than watch and wait to see how the details change as the act moves through parliament.
  
• If you'd like to get ahead of the almost certain changes to the qualifying period for unfair dismissal - introduce a robust probation period process and make sure it's consistently applied. 
  

Whilst we're waiting for further updates... there's preparation we can do to place your business into a stronger position to navigate changing legislation.

Here's your HR to-do list

1. Review policies regularly. Ensure employee handbooks, and any other employment related policies are up to date.
   
2. Strengthen your Dignity at Work policy. Introduce or update your current policy and conduct a harassment risk assessment and workplace training.
   
3. Train managers. Ensure they understand harassment prevention duties and fair dismissal processes.
   
4. Check employment contracts. Ensure all employees have contracts that reflect their current role and location and that they meet all the requirements of current legislation. If you haven't reviewed contracts since April 2020, now is the time!
   
5. Document decisions. Keep detailed records of probationary performance reviews, any informal conversations about performance and dismissals.
   
6. Review data protection compliance. When was the last time you checked your employee records to ensure they are accurate and GDPR-compliant? Checking employee personal details annually is good practice to ensure you hold accurate information and cleansing your employee files regularly supports your compliance with GDPR.

As always, I am here to help, so please get in touch to discuss any of the changes I've outlined, or you'd like to support and guidance with your HR To-Do List!