Key changes to employment law in 2025 for employers

Our HR expert Stacie Cheadle looks at what’s to come in 2025 for employers from changes to annual leave rollup to re-engagement rules and hikes in NMW from April, and the much publicised Employment Rights Bill

In October 2024, the Employment Rights Bill was first put before parliament, ending weeks of speculation as to what it would contain. The Bill promises to bring in significant changes to the law, but we don’t expect to see those start to take effect until 2026. However, that doesn’t mean that 2025 will be free from legal changes, albeit on a smaller scale than in the years before and after.

January 2025

In January 2025, employers with a January–March annual leave year will finally be able to introduce rolled-up holiday pay for their part-year and/or irregular hours workers, should they want to.

Another reform that comes into force in January is the extension of the 25% uplift for failing to comply with the relatively new statutory Code of Practice on Dismissal and Re-engagement to include protective awards for the first time.

Your free features:

  • Breaking news and expert analysis
  • Customisable daily newsletters
  • Six free CPD learning modules each year
  • Personalised CPD tracker
  • Top 75 Firms league tables
  • Regulatory changes
  • Hardman’s Tax Data

Sign up to Business & Accountancy Daily

Related Articles
Subscribe