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What to Expect in Employment Law in 2025
January 14, 2025
1.Duty to Prevent Sexual Harassment in the Workplace
This duty came into force on 26 October 2024 but employers still need to take preventative action. The Equality Human Rights Commission has published updated guidance which includes a checklist, action plan and monitoring log, which are designed to complement existing HR policies aimed at preventing sexual harassment in the workplace. You can read more about the duty here.
Although this duty is already in place, the UK Government has indicated an intention to strengthen it even further, and these changes may well come into force in 2025. We’ll keep you updated when more news is released on this.
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2.Wages Increases
The National Minimum Wage increase will come into force on 1 April 2025. The national living wage will increase by £0.77 to £12.21 for those aged 21 or over. For 18-to-20-year-olds, minimum wage will increase by £1.40 to £10.00 an hour, and for 16- to 17-year-olds it will increase by £1.15 to £7.55 an hour.
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3. Statutory Payment Increases
From April 2025 several statutory payments rates in the UK will increase. Statutory sick pay (SSP) will rise from £116.75 to £118.75 per week, with a qualifying threshold of £125 per week.
Statutory maternity pay, maternity allowance, statutory adoption pay, statutory paternity pay, statutory shared parental pay and statutory parental bereavement pay will rise from £184.03 to £187.18 per week.
In addition, the lower earnings limit (the weekly earnings threshold for qualifying for all the above payments, except maternity allowance) will increase from £123 to £125. The threshold for maternity allowance will remain at £30 per week.
We’re also expecting some other changes to the SSP rules following the release of the Employment Rights Bill in October 2024. In particular, this includes a removal of the 3-day waiting period for SSP. This will be a major change and could be costly for employers, but we’re still waiting to hear how and when it will be brought into force – more information is expected in the next few months.
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4. National Insurance Increase for Employers
The Government announced last year that from 6 April 2025, significant changes to employer National Insurance will be implemented.
At present, the Class 1 lower earnings limit for 2024-25 is the threshold at which employees start paying National Insurance.
The secondary Class 1 national insurance (employer) threshold will be lowered from £9,100 to £5,000 per year, while the main rate of secondary Class 1 National Insurance (employer) contributions will rise from 13.8% to 15%. Additionally, the rates for Class 1A and Class 1B employer contributions, which apply to taxable benefits-in-kind, will increase accordingly.
The Government plans to increase the employment allowance to partially offset the increases. The Government will also remove current restrictions limiting the employment allowance to employers with an annual employer NICs liability of less than £100,000. Furthermore, the maximum amount employers can save through the allowance will increase from £5,000 to £10,500.
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5. Prohibition of passing immigration fees to sponsored workers
The Home Office guidance in relation to sponsoring a skilled worker has been updated. From 31 December 2024, sponsors are expressly prohibited from passing on of the following immigration fee to sponsored workers:
If a sponsor is found to have recouped or attempted to recoup these costs, their sponsor licence will “normally” be revoked.
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6. Statutory Neonatal care Leave and Neonatal care pay
It is expected that new statutory neonatal care leave (SNCL) and neonatal care pay (SNCP) entitlements will be delivered by April 2025 when the Neonatal Care (Leave and Pay) Act 2023 could be brought into force.
The Government is yet to complete the regulations and much of the detail is still unknown but the right to SNCL will be available with no qualifying period of employment to employees who have a parental or other personal relationship to a child who is receiving, or has received, neonatal care. The meaning of a personal relationship is yet to be clarified but will be defined in regulations.
“Neonatal care” will also be defined in the regulations, but at present we are aware it must commence within the first 28 days after birth and last at least seven days. The amount of SNCL entitlement has yet to be defined. While it is likely to depend on the duration of neonatal care, it will be at least one week and is not expected to exceed 12 weeks.
SNCP will be payable throughout SNCL to employees who meet minimum earnings and length of service criteria, similar to the criteria for statutory maternity pay (SMP) and statutory paternity pay (SPP). The amount of SNCP is likely to be the same as the prescribed rate of SMP and SPP.
You can read more about this and other staff handbook changes you must make here.
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7. Draft Equality (Race and Disability) Bill
The Government has proposed to introduce an Equality (Race and Disability) Bill which will introduce a new right for employees to bring an Equal Pay claim based on a disability. The Bill could also require employers with over 250 employees to report their disability pay gaps, similar to the existing regulations on the gender pay gap.
Further details have not yet been published but you can find out more about this here.
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8. Right to Disconnect
This is part of the government’s ‘Plan to make Work Pay’. The proposal is to introduce a policy through a statutory code of practice which will prevent employees from being contacted outside of working hours, except in exceptional circumstances. It is expected that a consultation relating to the draft statutory code of practice will take place.
You can read more about the right to disconnect here.
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9. Domestic Abuse (Safe Leave) Bill
The Government is considering the introduction of a Domestic Abuse (Safe Leave) Bill which proposes the right to 10 days’ paid “safe leave” allowing employees time to secure safety and relocate, manage medical concerns, and attend police interviews without fear of job loss.
The Government will need to consult on the Bill and information about when it could be brought into force is yet to be announced.
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10. Employment Rights Bill
The Government’s consultation on the other Employment Law changes is expected to begin in 2025 although the biggest reforms are unlikely to take effect until Autumn 2026. You can read about the proposed changes here.
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For more information on these forecasted changes, get in touch with our employment solicitor, Heledd Ainsworth on hainsworth@darwingray.com or 029 2082 9131 or by using our contact form, for advice on your next steps.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
