The Future of Employment Law in the UK: Key Changes Coming This Year

 
10/04/2025
4 min read

As the UK enters 2025, significant shifts in employment law are on the horizon, aiming to enhance workers' rights and reshape workplace dynamics. These changes, driven by recent legislation and proposed bills, will impact both employers and employees across the nation.​

1. Employment Rights Bill 2025

Introduced by the Labour government, the Employment Rights Bill seeks to bolster workers' protections and modernize employment practices. Key provisions include:​Latest news & breaking headlines

  • Day-One Rights: Workers will gain immediate access to rights such as sick pay, flexible working arrangements, and protection against unfair dismissal from the commencement of their employment.​Latest news & breaking headlines
     
  • Enhanced Family Leave: The bill proposes expanding paternity and parental leave, allowing parents to take time off from work to care for their children.​
     
  • Zero-Hours Contracts Regulation: Stricter regulations aim to limit the use of zero-hours contracts, ensuring more predictable and stable working conditions.​
     
  • Neonatal Care Leave: Parents with babies requiring neonatal care will be entitled to up to 12 weeks of paid leave from day one, supplementing existing maternity and paternity leave. ​The Guardian
     
  • Sick Pay Improvements: The bill proposes extending statutory sick pay to cover more workers from the first day of illness, aiming to support those who are unwell.​
     

While these reforms aim to support workers, concerns have been raised about their potential impact on employers, particularly regarding increased administrative burdens and costs. Some argue that the complexity of the new regulations could discourage businesses from hiring temporary or seasonal staff, potentially affecting job opportunities for students and young workers. ​Latest news & breaking headlines+1Latest news & breaking headlines+1

2. Worker Protection (Amendment of Equality Act 2010) Act 2023

Enacted in October 2023, this Act introduces significant changes to prevent workplace harassment:​Wikipedia+1The Guardian+1

  • Employer Responsibilities: Employers are now legally obligated to take all reasonable steps to prevent sexual harassment in the workplace.​
     
  • Third-Party Harassment: The Act reinstates duties for employers to protect employees from harassment by third parties, such as clients or customers.​
     
  • Legal Recourse: Employees who experience harassment can seek legal remedies, including compensation, if employers fail to uphold their responsibilities.​
     

This legislation underscores a commitment to fostering safe and respectful work environments, holding employers accountable for preventing harassment. ​

3. Employment Tribunal Procedure Reforms

Effective from January 6, 2025, new Employment Tribunal Procedure Rules have been introduced. While not drastically different from previous rules, these updates aim to streamline tribunal processes and enhance clarity in proceedings. Employers and legal practitioners should familiarize themselves with these changes to ensure compliance and efficient handling of employment disputes. ​Howes Percival

4. Impact on Young Workers and Seasonal Employment

Recent data highlights that nearly one million young people aged 16 to 24 are not engaged in work, education, or training. Factors such as long-term illness, particularly mental health issues, contribute to this trend. However, new legislation, including the Employment Rights Bill, may inadvertently affect opportunities for young and seasonal workers. Stricter regulations on temporary contracts and zero-hours arrangements could lead employers to hesitate in hiring young or temporary staff, potentially limiting job opportunities during peak seasons. ​Latest news & breaking headlinesLatest news & breaking headlines

5. Diversity, Equity, and Inclusion (DEI) Policies

In light of global developments, some UK companies have considered scaling back DEI initiatives. However, legal experts warn that reducing such policies could increase the risk of discrimination and harassment claims. UK law requires employers to take reasonable steps to prevent workplace harassment, and dismantling DEI efforts may be viewed as failing to uphold this duty. Employers are advised to maintain robust DEI policies to mitigate legal risks and promote an inclusive workplace culture. ​The Guardian

6. Ongoing Developments and Future Outlook

The Employment Rights Bill is currently under review in Parliament, with key provisions expected to come into effect in 2026. Employers should stay informed about the progress of this legislation and begin preparing for its implementation. This includes reviewing and potentially revising employment contracts, policies, and training programs to align with new legal requirements.​

Additionally, the establishment of the Fair Work Agency, as proposed in the Employment Rights Bill, will play a crucial role in enforcing labor market regulations and supporting both employers and employees in navigating employment rights and responsibilities.​Wikipedia

Conclusion

The landscape of employment law in the UK is undergoing significant transformation in 2025, with reforms aimed at enhancing workers' rights and modernizing workplace practices. Employers and employees alike must stay informed and adapt to these changes to ensure compliance and foster positive working relationships. Consulting with legal experts and regularly reviewing employment policies will be essential steps in navigating the evolving legal environment