The UK employment landscape is evolving, with new laws coming into effect in 2025 that impact both employers and employees. Whether you’re a business owner, HR professional, or worker, staying informed on these changes is essential for compliance and workplace fairness.
Key Employment Law Changes in 2025
1. Flexible Working Rights Expansion
The Employment Relations (Flexible Working) Act 2024 has now come into effect, giving employees the right to request flexible working from day one of employment. Employers must respond to requests within two months, ensuring a faster and more transparent process.
2. Enhanced Family Leave Rights
New updates to Statutory Paternity Leave allow fathers and partners more flexibility in taking their two-week entitlement. Instead of taking leave in a single block, employees can now split their leave into two separate one-week periods within the first year of birth or adoption.
3. Increased Protection Against Redundancy for New Parents
The Protection from Redundancy (Pregnancy and Family Leave) Act 2024 extends redundancy protections for pregnant employees and those returning from maternity, adoption, or shared parental leave. Employers must prioritize these employees for suitable alternative roles in redundancy situations.
4. Changes to Holiday Pay for Irregular and Part-Year Workers
Following recent Supreme Court rulings, new regulations clarify holiday pay calculations for workers on irregular hours or part-year contracts. Employers must ensure they comply with updated methods to avoid legal disputes and incorrect pay calculations.
5. Stronger Regulations on Fire and Rehire Practices
The UK government has introduced a statutory code of practice regarding fire and rehire tactics, which some employers use to change terms and conditions. This new guidance ensures fair treatment of employees and introduces penalties for non-compliance.
What Employers Need to Do
Review employment contracts: Ensure new policies align with legal updates.
Update HR policies: Flexible working, redundancy processes, and family leave policies need revisions.
Educate managers: Provide training on new laws to ensure fair and compliant workplace practices.
How Employees Can Benefit
More work-life balance: Flexible working rights enhance job satisfaction.
Stronger job security: Redundancy protections and fire-and-rehire regulations offer better safeguards.
Improved family leave options: More flexibility in paternity and parental leave enhances work-life integration.