Looking Back at 2024

2024 was a relatively quiet year for major employment law changes. Like many HR professionals and legal advisors, we spent much of the year analysing the new Labour government’s Employment Rights Bill and its potential impact.

One significant update was the change to sexual harassment legislation in October. To stay ahead, we introduced a new Sexual Harassment Policy, conducted a risk assessment, and provided training to all employees to ensure compliance and awareness.

Another key change was the update to paternity leave, allowing fathers to take their leave more flexibly in two separate one-week blocks, giving families greater flexibility.

What’s Changing in 2025

The coming year brings some major changes that will impact UK businesses:

•    Employer National Insurance Contributions: The unexpected increase in employer NI contributions and changes to NI thresholds will have a significant financial impact. Combined with the rise in the national minimum wage in April, businesses will need to focus on efficiency and productivity.

•    Holiday Pay for Irregular Hours Workers: Since January 1st (the start of our holiday year), holiday pay calculations have changed. Now, all pay received by an agency worker—including overtime, performance-related bonuses, and shift allowances—must be included in holiday pay calculations. This applies even if workers have a relatively stable shift pattern, as long as their contracts don’t guarantee fixed hours.

•    Employment Rights Bill: While most changes from this bill are expected to take effect in 2026, preparation in 2025 is crucial. We’re closely monitoring developments and attending webinars and legal briefings to stay ahead. 

Key areas that will impact employers include:
o    The right to request a contract with more stable and guaranteed hours
o    Reasonable notice for shift changes and cancellations
o    Removal of unfair dismissal qualifying service
o    Sick pay entitlement from day one

•    Neo-Natal Leave and Pay: From April, eligible parents whose babies require neonatal care will be entitled to up to 12 extra weeks of paid leave, offering much-needed support during critical times.

Need Guidance?

If you’d like to discuss how these changes may affect your business, we’d be happy to help. Please email [email protected] to arrange a meeting.

Let’s navigate these changes together and ensure your business stays ahead in 2025!