Employment Law Changes in 2025: What Employers and Employees Need to Know
The landscape of employment law is constantly evolving, and 2025 is no exception.
With new legislation, updated workplace policies, and shifting employee rights, both employers and employees need to stay informed to remain compliant and protected.
In this guide, we’ll break down the key employment law updates for 2025 and what they mean for your business or career.
1. Minimum Wage Increases
The UK government has confirmed another rise in the National Minimum Wage and National Living Wage. From April 2025, the new rates will impact workers across various age brackets. Employers must ensure payroll systems are updated and contracts reflect the new rates to avoid legal penalties.
2. Changes to Flexible Working Rights
New rules make flexible working requests a day-one right for employees, removing the previous 26-week eligibility requirement. Employers must consider requests fairly and respond within two months. This shift means businesses should review their policies and be prepared for an increase in applications.
3. AI in the Workplace and Employment Rights
With artificial intelligence playing a growing role in hiring and HR processes, new guidance on AI-driven decision-making has been introduced. Employers must ensure AI tools do not discriminate and that automated decisions include human oversight to comply with equality laws.
4. Stricter Rules on Zero-Hour Contracts
Employees on zero-hour contracts now have stronger protections against unfair treatment and dismissal. New regulations limit "one-sided flexibility", ensuring workers receive fair notice of shifts and compensation for last-minute cancellations. Employers relying on these contracts must reassess their scheduling policies.
5. Updates to Redundancy and TUPE Regulations
New legislation strengthens protections for employees facing redundancy, particularly in businesses transferring ownership under TUPE (Transfer of Undertakings Protection of Employment) laws. Employers must now consult employees earlier and provide clearer communication about their rights.
6. Enhanced Family Leave Policies
Parental leave laws have expanded, offering greater flexibility for fathers, partners, and adoptive parents. Shared Parental Leave and Paternity Leave entitlements have increased, encouraging a better work-life balance for families. Employers should update HR policies to reflect these changes.
7. Tougher Enforcement of Employment Tribunal Rulings
Employers who fail to comply with tribunal rulings face harsher financial penalties and enforcement action. Employees now have a faster resolution process for unpaid wages, discrimination claims, and unfair dismissal cases.
What Should Employers and Employees Do Next?
For employers, now is the time to review contracts, update HR policies, and ensure compliance with the new laws. Employees should stay informed about their rights and seek legal advice if they experience workplace issues.
At Everglynn Law, we specialise in employment law advice for businesses and individuals.
If you need guidance on the 2025 changes, get in touch today to ensure you’re legally protected.
