The UK employment law landscape has undergone significant changes in 2024, and more updates are on the horizon for 2025 and beyond. These reforms impact employers, demanding careful consideration by them to ensure they are legally compliant and ensuring they are following best practice.
Below, we review the key changes in employment law introduced in 2024 and also take a look at what lies ahead in the coming year:
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Requesting Flexible Working from Day One:
Employees can now request flexible working arrangements from day one of their employment. Employers must follow the statutory process to consider the request and can only refuse the request on one of eight specified grounds. unless they can provide legitimate business reasons for refusal. This change necessitates a review of existing policies and the implementation of processes to handle requests efficiently. -
Updates to Sexual Harassment Laws - A Safer Workplace:
New sexual harassment laws introduced in 2024 represent a critical step toward fostering respectful and inclusive work environments with employers facing heightened accountability for preventing sexual harassment in the workplace and supporting affected employees.
Key Updates Include:
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Employer Liability:
Businesses now have a legal duty to take proactive measures to prevent sexual harassment. This includes implementing anti-harassment policies, providing regular training to staff members, and fostering a zero-tolerance culture to sexual harassment. Non-compliance could result in financial and reputational damage. -
Higher Compensation Awards:
Victims of sexual harassment can now claim increased compensation, with an Employment Tribunal able to award an additional 25 per cent in monetary compensation where an employer has failed in their duty to prevent sexual harassment, emphasising the seriousness of such misconduct and the importance of robust prevention measures. -
Enforcement Action by the EHRC:
The EHRC can take enforcement action against an employer who is found to have breached the new duty, adding further risk of reputational damage.
Practical Steps for Businesses: To comply with these changes, employers should review their workplace culture, update training programmes, and establish confidential reporting channels for those who are the victim of, or witness, sexual harassment. Acting decisively on complaints and fostering an inclusive environment will protect both employees and businesses.
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Fire and Rehire: Updates to the An End to Exploitative Practices:
The contentious practice of "fire and rehire", where employers terminate contracts to rehire employees on less favourable terms, came under scrutiny following high profile cases involving P&O Ferries and Tesco, with the result that a statutory Code of Practice was introduced. The Code sets out best practice for employers and details provisions that employers should consider when adopting fire and rehire practices, including the following:
- Considering Alternatives: employers must consider any alternatives and take all reasonable steps to avoid dismissal and re-engagement on new terms.
- Genuine Consultations: Employers are required to engage in meaningful dialogue with employees (and their representatives) when proposing contractual changes.
- Compliance and Transparency: Clear communication about organisational restructuring is critical. Employers should document discussions and outcomes to protect them in the event of legal challenges.
Action Plan for Employers: Businesses must develop compliant strategies for handling contractual changes and ensure that they follow the Code of Practice, together with ensuring that they are complying with the legislation which surrounds this area of employment law; which is complex and onerous.
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Changes to Holiday Pay for Irregular Hours Workers:
For leave years that start on or after 01 April 2024, employers now have a choice as to how to calculate holiday pay. They can either use rolled up holiday pay, paying an extra 12.07% on top of earnings in the pay period that are paying the worker for, or can pay the worker the average of their pay over a period of 52 weeks when they take holiday. -
Paternity Leave:
From April 2024, qualifying employees can now take their 2 week paternity leave entitlement in two blocks of one week or one block of two weeks; and can take the time off at any time up to the child’s first birthday. - April Changes: Each April brings routine updates to employment laws, and 2024 was no exception. Notable changes included the National Living Wage Increases. Adjustments to minimum wage rates required payroll updates and budget planning for employers with the National Living Wage increasing to £11.44, whilst the National Minimum Wage rose to £8.60 for 18 – 20 year olds.
Upcoming April 2025 Considerations: Looking ahead, it has been confirmed that the National Living Wage will increase to £12.21 and the National Minimum Wage for 18 – 20-year-olds will increase to £10.00.
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Redundancy Protection of Pregnant Employees and New Mothers:
From April 2024, pregnant employees or those on maternity leave have priority to be offered suitable alternative employment in a redundancy situation from the point that they tell their employer they are pregnant until 18 months after they have returned to work. -
Carer’s Leave:
From April 2024, all employees have a right to take carer’s leave. This is for a maximum of one week in a rolling 12 month period. The time off is unpaid and can be taken in blocks of 0.5 days. -
The Employment Rights Bill: A Comprehensive Overhaul for 2025 and 2026:
Introduced in 2024, the Employment Rights Bill is the cornerstone of recent employment law reforms and sets out the basis for many of the changes still to come. The changes the Bill sets out aim to protect workers’ rights, improve job security, and address wage inequality. It includes several sweeping changes that all employers need to be aware of and will require employers to adapt their practices to ensure that they are legally compliant. Whilst the provisions of the Bill do not yet have legal force, with most expected to come in to effect in 2025 and 2026, we have set out below the main changes that employers need to be aware of so that they can fully prepare for the changes to come.
Key Provisions of the Bill Include:
- Day-One Employment Law Rights: Employees will have protection from unfair dismissal from their first day of employment. This removes the previous two-year qualifying period and with the aim of strengthening job security. Employers should ensure their dismissal processes are robust and well-documented to withstand potential legal scrutiny. We’re expecting a “light-touch” dismissal procedure during the probationary period, but this won’t apply where the reason for termination is redundancy.
- Enhanced Sick Pay: Statutory sick pay will be payable from the first day of illness, providing immediate financial support to employees. Businesses will need to update payroll systems and educate their managers amd employees about how this change to entitlement will work.
- Guaranteed Hours in Contracts: To combat the insecurity of zero-hour contracts, the Bill mandates that employers must provide contracts with guaranteed hours based on average hours that they have worked. This ensures workers have a predictable income, but it also requires businesses to rethink their staffing models.
- Notice for Shift Changes: Employers will have to provide reasonable notice for altering shifts, ensuring employees on zero-hours contracts can plan their lives and work . This provision emphasises fairness, urging businesses to adopt more structured scheduling practices.
- Ban on "Fire and Rehire" Practices: The recent changes we have seen to fire and rehire will be extended and employers will be prevented from dismissing employees only to rehire them on less favourable terms.
- Immediate Paternity Leave Rights: Fathers will be entitled to take paternity leave without the need for any length of service , supporting the importance of early parental involvement in a child’s life. Employers will need to revise their leave policies to reflect this update and provide clear communication to employees about this .
- Social Care Sector Reforms: A negotiating body is going to be introduced to harmonise pay and conditions in the social care sector, a move which the Governmane hopes will address wage disparities and improve employment standards in the sector. It is anticipated that such negotiating bodies will be rolled out to other sectors over time.
How Employers Should Prepare: The implementation of the Employment Rights Bill will take up to two years, with consultations between the Government and third parties and stakeholders already underway. Businesses, particularly SMEs, will need to ensure that they stay informed of developments and are prepared for phased compliance.
Other Potential Employment Law Developments for 2025 and beyond…
As the employment landscape continues to evolve, several areas are likely to see additional reforms in 2025:
- AI and Employment: With the growing influence of artificial intelligence, new regulations may address its use in recruitment, performance monitoring, and workplace decision-making. Employers using AI should prepare for potential compliance requirements around transparency and fairness.
- Mental Health in the Workplace: Building on the focus on employee well-being, future laws may introduce mandatory mental health policies. Businesses should proactively support employee mental health through training and accessible resources.
- Pay Gap Reporting Expansion: The scope of gender pay gap reporting requirements could widen, impacting more businesses and requiring detailed data analysis. Pay gap reporting on other areas could also be introduced, such as pay gaps for disabled employees and those employees from the BAME communities.
- Four-Day Working Week Discussions: Whilst not yet law, the concept of a four-day working week continues to gain attention, with trials across a number of sectors having already taken place.
Practical Tips for HR Managers and SMEs regarding changes to Employment Laws
Navigating these changes requires a proactive and strategic approach.
Here are some practical steps to ensure compliance and foster a supportive workplace:
- Stay Informed: Regularly review government updates and industry insights to stay ahead of legal changes. You can also subscribe to our newsletter which details updates across a range of legal areas, including employment law. If you want to sign up, click here [LINK TO SIGN UP]
- Policy Audits: Conduct periodic reviews of employment contracts, workplace policies, and training programs to ensure alignment with new regulations.
- Employee Engagement: Involve employees in discussions about changes to establish a culture which fosters transparency and trust.
- Legal Advice: Consult with employment law specialists to address complex issues and mitigate risks.
- Technology Integration: Use HR software to track compliance, manage requests (e.g., for flexible working), and maintain accurate records.
The employment law changes of 2024 signal a transformative shift in the UK’s approach to workers' rights, fairness, and inclusivity. For HR managers and SMEs, adapting to these reforms is not just a legal requirement but an opportunity to create positive and sustainable workplace practices. Looking to 2025, businesses should prepare for further developments, particularly in areas like AI, mental health, and gender equality. By staying informed and proactive, employers can navigate these changes effectively while fostering a productive and fair working environment.
Our specialist Employment Law team can support you with HR and Employment Law advice, please contact us today at employment@bannerjones.co.uk
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Katie Ash
- Director
- Solicitor
- Head of Employment Law
- KatieAsh@bannerjones.co.uk
- 01246 560519
- Sheffield - Abbey House 0114 275 5266