Skip to Content

Staying Ahead in the Evolving Recruitment Landscape

The Upcoming Employment Law Changes in the UK: What Employers and Employees Need to Know

As we move into 2025, a range of employment law changes are set to take effect in the UK. These updates are designed to address evolving workplace dynamics, increase protections for workers, and streamline employer practices. Understanding these changes is crucial for both employers and employees, as failure to comply could result in penalties or legal disputes.

At Auris Personnel, we’re committed to keeping our clients informed about the latest developments in employment law. Here’s a breakdown of the key changes and what they mean for you.

1. Flexible Working Requests – Right to Request from Day One

One of the most significant changes to employment law in the UK is the expansion of the right to request flexible working. Starting in 2025, employees will no longer need to wait 26 weeks before requesting flexible working arrangements. This means that from the first day of employment, workers will have the legal right to request a flexible working pattern, such as part-time hours, job sharing, or remote working.

What Employers Need to Know:

Employers will be required to handle these requests in a more structured and timely manner. They will have to respond within a reasonable time frame (usually two months) and provide clear reasons if a request is rejected. Employers should consider reviewing their flexible working policies and prepare for the potential increase in requests.

What Employees Need to Know:

This new law will provide greater work-life balance, particularly for those with caregiving responsibilities or those looking to improve their mental health by working from home. Employees will no longer have to wait months to request a change in their working conditions.

2. Increases to Statutory Sick Pay (SSP) and Eligibility

The UK government has announced an increase in Statutory Sick Pay (SSP) rates and a broader scope of eligibility for employees in 2025. Under the new changes, employees who are off work due to illness or injury will see an increase in the amount they receive during their time off. Additionally, the eligibility criteria for SSP will be broadened, meaning more workers will qualify for these benefits.

What Employers Need to Know:

Employers will need to stay updated on the new SSP rates and adjust payroll systems accordingly. It’s also essential to review company policies surrounding sick leave to ensure they align with the updated legislation.

What Employees Need to Know:

Employees will benefit from increased financial support during times of illness, which could significantly impact their financial well-being. Those previously ineligible for SSP due to the minimum earnings threshold may now find themselves entitled to payments if the eligibility criteria are relaxed.

3. New Protection Against Pay Discrimination

Another important change is the introduction of gender and pay gap reporting requirements for all employers with 250 or more employees. This legislation will focus on addressing pay discrimination and inequality in the workplace. Employers will need to report their gender pay gap on an annual basis and implement strategies to reduce any disparities.

What Employers Need to Know:

Employers will be required to monitor and report on gender pay gaps, even in smaller organisations. There will be more emphasis on transparency, and organisations will need to ensure their pay structures are fair and equitable. It is recommended that companies take proactive steps to identify any potential gaps and address them.

What Employees Need to Know:

This change is a significant step toward achieving gender equality in the workplace. Employees will have greater insight into whether they are being fairly compensated compared to their peers and will have legal backing to challenge any disparities in pay.

4. Enhanced Protection for Agency Workers

The UK government is also planning to introduce stronger protections for agency workers. These changes are designed to ensure that agency workers receive equal pay and working conditions as permanent employees after a specified period working with the same employer. The new rules aim to increase job security and fairness for those in temporary or agency positions.

What Employers Need to Know:

Employers must review their policies for managing agency workers, ensuring they meet the new legal standards. This may include reviewing pay rates, benefits, and working conditions to ensure they are in line with those for permanent employees.

What Employees Need to Know:

For agency workers, these changes mean better protection against exploitation, and the potential for higher pay and benefits over time. It is a step toward improving job security and ensuring fairer treatment for temporary workers.

5. Family Leave and Pay Reforms

The government is also set to introduce extended family leave entitlements. This includes more comprehensive paternity and parental leave, allowing both parents to share time off to care for a newborn or newly adopted child. These changes aim to promote equality in caregiving and help both parents balance their careers and family life.

What Employers Need to Know:

Employers will need to update their policies to reflect these changes, particularly for businesses with a high volume of employees who may be eligible for leave. Employers should prepare for more requests for family leave and ensure they comply with the updated regulations.

What Employees Need to Know:

Employees will benefit from more equal family leave options, helping both parents share the responsibility of child-rearing. This also reflects broader societal changes, encouraging both parents to have an active role in caregiving from the start.

6. Protection Against Unfair Dismissal for Pregnant Employees

Under new employment law changes, pregnant employees will be given stronger protection against dismissal. The law will make it harder for employers to dismiss workers who are pregnant or on maternity leave, reinforcing existing rights and reducing the risk of discrimination in the workplace.

What Employers Need to Know:

Employers will need to review their practices and ensure they are fully compliant with the new protections. Dismissals related to pregnancy or maternity leave could result in significant legal consequences, so it is crucial to handle these matters with sensitivity and care.

What Employees Need to Know:

This new protection provides greater security for pregnant employees, knowing that they cannot be unfairly dismissed during or after maternity leave. It’s an essential step towards ensuring fair treatment for all employees, regardless of their family status.

Stay Prepared for Upcoming Changes

Employment laws in the UK are evolving, and it’s crucial for both employers and employees to stay informed and prepared for these changes. At Auris Personnel, we work closely with businesses to ensure compliance with the latest legislation and help workers understand their rights.

If you have any questions about how the upcoming changes might impact your business or career, don’t hesitate to get in touch with us. We’re here to help navigate the evolving landscape of UK employment law.

Contact us today for a consultation!

Staying Ahead in the Evolving Recruitment Landscape