What Employment Law changes can we expect to see in 2025?

2024 has been a huge year in employment law. The Employer (Allocation of Tips) Act, 2023 came into force, employers obtained a new proactive obligation to prevent sexual harassment in the workplace, not to mention the introduction of the Employment Rights Bill 2024 which proposed some major changes to employment law.

2025 is also set to be a big year for changes in employment law.

Changes to National Minimum Wage, National Insurance and Statutory Payments

On 1 April 2025, there will be an increase in the National Minimum Wage (“NMW”) which will see the following changes:

• National Living Wage increasing from £11.44 to £12.21;
• For 18 to 20 year olds, the NMW rate will increase from £8.60 to £10;
• For those under 18 years of age, the NMW rate will increase from £6.40 to £7.55; and
• Apprentice NMW rates will increase from £6.40 to £7.55.

On 1 April 2025, statutory payments are anticipated to increase from April 2025 as follows:

• Statutory sick pay increasing from £116.75 to £118.75 per week;
• Statutory maternity pay, maternity allowance, statutory adoption pay, statutory paternity pay, statutory shared parental pay, and statutory parental bereavement pay will all increase from £184.03 to £187.18 per week.
• The weekly earnings threshold for qualifying for the statutory payments will increase from £123 to £125. The maternity allowance will remain at £30 per week.

On 6 April 2025, employer National Insurance will increase from 13.8% to 15% and the secondary threshold at which employers begin to pay national insurance contributions will decrease from £9,100 to £5,000 per annum. Nevertheless, the Employment Allowance for eligible employers will increase from £5,000 to £10,500.

Neonatal Care (Leave and Pay) Act 2023

The Neonatal Care (Leave and Pay) Act 2023 (“the Act”) will also come into force in April 2025.

As previously reported, the Act will introduce statutory paid leave for employed parents whose newborn baby is admitted to neonatal care. Parents will be entitled to 12 weeks paid leave, in addition to the statutory maternity leave or paternity leave already available from day one of their employment.

To read more about the implications of the new Act, please read our previous article on this by clicking here.

Employment Rights Bill 2024 – Day One Rights

Currently at the Committee Stage in the House of Commons, with eight more stages before receiving Royal Assent, the Employment Rights Bill proposed to make the following day one rights:

• Statutory Sick Pay – currently only available from day three of sickness;
• Unfair Dismissal – currently only available to employees with two-years continuous service;
• Paternity Leave and Ordinary Parental Leave – currently only available to employees after one-year qualifying service; and
• New statutory right of Bereavement Leave – available to all employees, but based on the employee’s relationship to the deceased, for a minimum of one week unpaid and two weeks paid leave for the death of a child.

To read more about this, please read our previous article on this by clicking here.

Gender Pay Gap Reporting & Menopause

Employer with more than 250 employees who are already required to report their gender pay gap data will now also be required to produce action plans to address their pay gaps and action plans with steps as to how they plan to support their employees going through menopause.

For further information or to discuss a potential employment law or discrimination claim, please contact our specialist employment solicitors on 0207 3950 5234 or info@rllaw.co.uk. We are ranked as a ‘Leading Firm’ in the Legal 500 and Chambers and Partners independent guides to the UK Legal Profession.

24 December 2024