On your radar
This resource reviews Labour Government employment law changes that are in the pipeline and how you can prepare for them.
Published: 14 November 2024 | Updated: 19 February 2025 | Brightmine Editorial Team
This is your overview of employment law developments that are in the pipeline, where you can learn what’s happening, what might be happening and what isn’t happening, as well as how you can start preparing for upcoming changes. Throughout, we aim to bust myths around upcoming changes.
In this resource:
- What’s happening: This is our summary of the main employment law changes that will be happening, with analysis of what they mean for you as an HR professional.
- What might be happening: Here, we tell you about changes that the Government is planning where we are still waiting on draft legislation.
- What isn’t happening: This section busts myths over changes that have been discussed but which are unlikely to go ahead. It also looks at changes that had been expected but are no longer in the legislative pipeline.
What’s happening
National insurance and minimum wage increases (1 and 6 April 2025)
Employers’ national insurance contributions will increase by 1.2%, to 15%, from 6 April 2025. The threshold at which employers begin to pay national insurance on an employee’s salary will be lowered from £9,100 to £5,000. The national living wage – the minimum legal wage for over-21s – will increase from 1 April 2025 by 6.6%, to £12.21 per hour.
New right to neonatal care leave and pay (6 April 2025)
The Neonatal Care (Leave and Pay) Act 2023 will provide parents with a day one right to take a period of neonatal leave (and pay subject to 26 weeks’ service) if their baby needs neonatal care. On 20 January 2025, the Government announced that the right will come into force on 6 April 2025. Parliament approved the draft Regulations, Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 and Statutory Neonatal Care Pay (General) Regulations 2025, on 11 February and publication of the final version is awaited on the UK legislation website.
New statutory maternity, paternity and sick pay rates (6 April 2025)
Statutory maternity, paternity, adoption and shared parental pay will go up from £184.03 to £187.18 a week. Statutory sick pay will rise from £116.75 per week to £118.75. The new rates will take effect on 6 April 2025. Further details can be found here. The rates have been confirmed in the draft Social Security Benefits Up-rating Order 2025, which Parliament is expected to approve by the end of February.
New right to paternity bereavement leave (likely 2025)
The Paternity Leave (Bereavement) Act 2024 will allow an employee to take paternity leave as a day-one right if the mother, or a person with whom a child is placed or expected to be placed for adoption, dies (although the Employment Rights Bill will make paternity leave a day-one right in any event). However, the intention behind the Act is to allow a bereaved employee to take up to 52 weeks’ leave during the first year of their child’s life/the year immediately after the child’s adoption. The Act was passed under the previous Government and much of the detail relating to the right is awaited in the form of secondary legislation. It’s not yet known when it will come into force but likely during 2025.
Employment Rights Bill — what we know, what HR can do now
The Government published its Employment Rights Bill on 10 October 2024. Below we look at its wide-ranging proposals, described as “the greatest shift in employment legislation in decades”.
We also look at the much-anticipated measures that are not included in the Bill.
The changes are unlikely to start coming into effect before 2026, so HR departments will have time to prepare. Brightmine will be providing updates and guidance throughout the legislative process.
A 53-page amendment paper was published in November 2024 by the House of Commons. This includes a variety of changes and additions to the original Bill. Brightmine will be providing updates and guidance throughout the legislative process. To find out what it takes for a Bill to become law, see our FAQ.
The majority of the provisions in the Employment Rights Bill apply to England, Wales and Scotland. In Northern Ireland, the Government is consulting on The ‘Good Jobs’ Employment Rights Bill, which contains proposals introducing and reforming various employment rights.
Additional harassment changes
Changes to harassment law took effect on 26 October 2024. The Employment Rights Bill now proposes to go further, introducing enhanced protection against third-party harassment and requiring employers to take all reasonable steps to prevent sexual harassment of employees in the course of their employment.
For more detail, take a free trial to see our employment law guide on harassment. Employers can start preparing now with our leading practice guide series on building a harassment-free environment.
Unfair dismissal protection extended to all employees from day one in a job
The Employment Rights Bill proposes to remove the qualifying period for unfair dismissal, so that all employees from their first day in a job can bring an unfair dismissal claim. The Government has said that the change is not likely to take effect until autumn 2026.
In Next Steps to Make Work Pay, the Government has said that it will allow employers to operate a probationary period which will give them an initial period during which there will be a lighter-touch process for employers to follow to dismiss an employee who is not right for the job.
What this means for HR
This is a significant change that is likely to result in more unfair dismissal claims. HR will need to review onboarding, probationary and dismissal processes, and training for line managers on managing performance.
For more detail about the change, see our Employment law guide on Unfair dismissal.
Further reforms to flexible working
While in Next Steps to Make Work Pay the Government says that it will make flexible working the default, the actual changes in the Employment Rights Bill provide that employers can still refuse a request for flexible working on the existing grounds, but the refusal will need to be reasonable, and they will need to explain why the refusal is reasonable. Regulations are expected on what steps an employer needs to take to consult with an employee about their request.
What this means for HR
These changes may lead to more flexible working requests and more employment tribunal claims where there will be greater scrutiny of an employer’s refusal, so HR teams will need to review how their organisation handles flexible working requests.
For more detail, see our Employment law guide on the Right to request flexible working for more detail.
Fire and rehire dismissals will be automatically unfair
The Employment Rights Bill will make it automatically unfair to dismiss an employee if the principal reason for dismissal is either that the employee refused a contract variation, or to enable the employer to recruit another person or rehire the employee under new terms but with substantially the same duties (although there is a limited exception around financial difficulties).
The Government has launched a consultation around interim relief for employees who bring an unfair dismissal claim under this right.
What this means for HR
HR leaders will need to think very carefully in future before recommending fire and rehire as a solution to business leaders, considering the significant financial penalties at stake.
For more detail, see our Employment law guide on Variation of contracts.
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Statutory paternity leave and ordinary parental leave to become day-one employment rights
The Employment Rights Bill will remove the qualifying periods for both paternity and unpaid ordinary parental leave. It will also remove the restriction on employees taking paternity leave and pay after they have taken shared parental leave and pay.
What this means for HR
The Government has said that it intends to conduct a wider review of the parental leave system. The introduction of these day-one rights is likely to be just the beginning of a wider shift in working practices.
For more detail, see our Employment law guide on Family-friendly rights.
Wider statutory right to bereavement leave
The Employment Rights Bill will extend bereavement leave beyond the death of a child to provide employees with time off to grieve the loss of loved ones. For the moment, the necessary relationship with the deceased to qualify for the leave is undefined but it is likely to mirror that used in time off for dependants.
What this means for HR
HR leaders might want to begin considering how the new bereavement leave right will interact with their organisation’s current compassionate leave arrangements.
For more detail, see our Employment law guide on Family-friendly rights. Find out about bereavement leave arrangements in other organisations in our Bereavement leave research 2024.
New trade union rights and reform of industrial action legislation
The Employment Rights Bill will give trade union officials a wider right to access workplaces for recruitment, organising and collective bargaining purposes, though not to organise industrial action. It will also require employers to give workers a written statement that they have the right to join a trade union.
In relation to industrial action, the Bill will repeal the minimum service level provisions and most of the changes to industrial action ballots that were introduced under the previous Government.
What this means for HR
Next steps for HR could depend on how much engagement employers have had with trade unions in the past since the Government is committed to a package of wide-ranging reforms to trade union and collective employment rights. Non-unionised businesses could start thinking about their approach to greater union involvement. And it will be even more important for unionised businesses to minimise the risk of industrial action, given that it will be a quicker and more straightforward process for unions to initiate.
For more detail, see our Employment law guide on Trade unions and industrial action.
Requirement to publish gender pay gap and menopause action plan
The Employment Rights Bill proposes a requirement for employers with 250+ employees to publish action plans as part of their annual gender pay gap reports indicating: (a) how they are addressing the pay gap and (b) how they are supporting employees going through the menopause.
What this means for HR
Employers could experimentally think about including an action plan in their gender pay gap report from April 2025, although the reporting requirement is unlikely to kick in before April 2027.
Deliver your pay gap report in minutes not days
New entitlements for zero and low hours workers
The Employment Rights Bill proposes fresh rights for workers in the gig economy. The Bill makes provision for zero and low hours workers to be given the right to a guaranteed number of hours if they work regular hours over a defined period. It will also result in a new right to reasonable notice of a shift, and reasonable notice of cancellation of, or change to, a shift, as well as a right to payment for cancelled, moved or curtailed shifts.
What this means for HR
These reforms are likely to result in higher admin and payroll costs as you may have to offer guaranteed hours in cases where there is no business need for it.
There will be less flexibility for employers, as it will be more difficult for employers to adjust the workforce up/down to meet seasonal demands. To get a head start, HR leaders could start identifying individuals who may be entitled to stronger rights to begin the process of assessing the impact of the change and whether the zero-hours contract model remains viable for you as an organisation.
For more detail, see our Employment law guide on Types of contract.
Statutory sick pay (SSP) changes
The Employment Rights Bill introduces important entitlement and procedural changes to SSP. The Bill removes the requirement for earnings to be at the lower earnings limit for eight weeks prior to going off sick, and abolishes the three-day “waiting period” at the beginning of a period of incapacity.
The Government consultation on the percentage replacement rate for those earning below the current SSP rate runs until 4 December 2024.
What this means for HR
According to Government estimates, at least one million more people will be eligible to receive SSP thanks to the changes, so there will be an increased cost to employers. HR leaders might consider whether this is a good time to introduce an enhanced sick pay scheme as well as review absence management procedures to ensure they are effective.
For more detail, see our Employment law guide on Sick pay.
Redundancy consultation reforms
At the moment, the duty to collectively consult arises where an employer is proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days. The Employment Rights Bill proposes to remove the words “one establishment” from current legislation, which in practical terms means that collective consultation will be triggered where 20 or more redundancies are proposed across the whole business.
What this means for HR
In terms of practical implications, collective consultation is likely to be triggered in more situations where businesses have multiple sites and where redundancies are completely unrelated. Where organisations have multiple sites, HR can start planning ahead by assessing current practices.
For more detail, see our Employment law guide on Collective redundancy consultation.
Extra protection against dismissal for pregnant employees
The Employment Rights Bill will prohibit employers from dismissing an employee during pregnancy, while on maternity leave, and during the six months after their return to work period, except in specific circumstances. This additional protection also applies to employees during, and on return from, adoption leave and shared parental leave.
What this means for HR
The specific exceptions will be defined in secondary legislation, at which point HR will need to review and potentially update any procedures that could end up with dismissal. Training of line managers on the extended protections will also be key.
For more detail, see our Employment law guide on Pregnancy and maternity discrimination.
Watch a recording of our webinar setting out the key developments here.
What might be happening
What was left out of the Employment Rights Bill?
Below, we explain what has happened to some of the other measures trailed by the Government that have not been included in the Employment Rights Bill.
Ethnicity and disability pay gap reporting
The Next Steps to Make Work Pay policy paper confirms that a new Equality (Race and Disability) Bill will extend pay gap reporting to ethnicity and disability for large employers. It will also extend the right to equal pay to include race and disability.
The paper says that the Government will begin consulting on this in due course, with a draft bill to be published during this parliamentary session, which ends in July 2025.
For many employers, new pay gap reporting duties will require significant changes in how they collect employee data. Get ahead with our Leading practice guide series on empowering ethnicity disclosure.
Parental leave and carer’s leave reviews
The Government has promised to conduct a full review of the parental leave system and examine the benefits of introducing statutory paid carer’s leave.
Employment status reforms
Employment status is important because it shapes employment rights. The Government has proposed merging employees and workers into a single category, which would potentially give more individuals access to a wider range of statutory rights.
The Next Steps to Make Work Pay policy paper indicates that the Government intends to begin a consultation process with a view to creating a single worker status.
Right to disconnect
Though widely anticipated, the right to disconnect was not mentioned in the Employment Rights Bill. However, the Government has said that it intends to create a non-statutory code of practice after a period of consultation.
What isn’t happening
The banning of zero hours contracts
Though much trailed in the media, this policy is not part of the Employment Rights Bill. However, the Government has set out proposals to increase the regulation of the gig economy.
The four-day, 32-hour working week
“Four-day week” is an ambiguous term that is currently being used to mean two quite different things. We understand that the Government is not planning to implement the proposals by the campaign to give workers 100% of their current pay in return for working a four-day, 32-hour week, although recent developments in relation to South Cambridgeshire District Council suggest it is not actively opposed to the policy either.
However, employees remain entitled to request to work compressed hours — that is, working their contracted number of hours but across a reduced number of days — under the current right to request flexible working and its extended form in the Employment Rights Bill.
For more information, listen to our four-day week podcast.
And finally, a media myth
Will the proposed introduction of third-party harassment liability for employers in the Employment Rights Bill lead to particular topics of conversation being banned in pubs, and even the end of free speech? Some commentators have suggested as much:
“Pubs could ban customers from speaking about contentious beliefs such as religious views or transgender rights over fears of falling foul of Labour’s workers’ rights reforms. The Government has been warned by the equalities watchdog that rules could ‘disproportionately curtail’ freedom of expression and be applied to ‘overheard conversations’.”
– Geraldine Scott, senior political correspondent at The Times
“The new employment rights legislation, which is designed to protect employees, says that debates should not happen in pubs if they’re offensive to staff. And this could well include debates such as transgender rights and veganism. And if they’re being expressed in a contentious way, people in the pub could be asked to leave. You might as well close the pubs down!”
– Nigel Farage, Reform UK MP for Clacton
“If we’re getting to the point where people are not able to talk about anything they want to talk about in a pub, which is where you talk about anything you want to talk about, pubs are over. Free speech is over. This whole Bill is a disaster for employers and needs to be scrapped because the Equality and Human Rights Commission is saying that the way this Bill could be interpreted, if you start giving your view on the transgender issue, for instance, someone can say that’s out of order. They could be thrown out of the pub. I mean, it really is 1984 we are living in now, isn’t it?”
– Dr Renée Hoenderkamp, regular contributor to Talk TV and GB News
The reality of the proposal and its likely consequences is slightly more nuanced:
- The Employment Rights Bill includes provisions to make all employers – not just those in the hospitality sector – liable for third-party harassment of an employee if it occurs during employment and the employer fails to take all reasonable steps to prevent it. This will not be limited to sexual harassment, but will extend to harassment on the grounds of age, disability, gender reassignment, race, religion or belief, and sexual orientation.
- The Employment Rights Bill will give the Government the power to introduce new regulations outlining what amounts to “reasonable steps” to prevent harassment, including third-party harassment. These steps may include conducting risk assessments, publishing anti-harassment policies, and taking steps related to the reporting of harassment and handling of complaints. While it is possible that these steps could include employers barring from the premises customers who harass staff, they are highly unlikely to include steps such as banning customers from bringing up certain sensitive subjects and frog-marching customers who do raise these subjects off the premises.
- However, in its written evidence to Parliament on the proposals, the Equality and Human Rights Commission acknowledges that there is room for a nuanced analysis to ensure that there is a balance between:
- The duty on employers to protect their staff from third-party harassment; and
- Third parties’ right to freedom of expression under art.10 of the European Convention on Human Rights, particularly when the belief being expressed could constitute a “philosophical belief” protected by the Equality Act 2010.
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