2025 looks set to bring many changes for employers.

The government are seeking to narrow the gap in pay based on age, by increasing the national minimum wage rate for 18 – 20 year olds to gradually bring them in line with rates for those aged 21+ over the next couple of years. Combined with the increase in employer’s national insurance, employers will be paying more for their labour which is likely to affect recruitment.

Increased liabilities on employers for failing to take steps to prevent sexual harassment in the workplace are now in play. Claims will start to come into the Tribunals in 2025 which will see employers in breach of such provisions being ordered to pay uplifts to compensation of 25% to affected employees. A mid-range injury to feelings award now costs up to £44,000, so those employers who haven’t got policies in place, undertaken risk assessments and trained their staff will need to do so early in 2025 to protect themselves. 

The government will consult about further employment law changes proposed in the Employment Bill and hailed as ’the biggest upgrade to worker rights for a generation’. Employers will need to start preparing for the changes which cover most areas of employment law. Unfair dismissal is set to become a day 1 right. No 2 year service requirement will be needed.

Zero/ low hour workers will be able to ask for guaranteed hours based on the hours that they regularly work. Compensation will be payable if shifts are cancelled or altered at short notice. Fire and re-hire practices are to be curtailed, initially by an increase in compensation for failing to follow the Code of Practice, when looking to alter terms and conditions via this route, then it being outlawed, save where ,the survival of the business is at risk.

Statutory sick pay will be payable immediately, with no waiting days causing concern as to whether short term absence levels may increase. Unions are to be given the right to enter workplaces to recruit new members, seek recognition and employers will in due course be required to notify their employees of their right to join a union at the time they join the business and at certain points thereafter.

One issue is for sure. There are a lot of changes to employment law planned and employers will need to be on top of them.