10/03/2025
⚖️Employment law changes ⚖️
2025
Statutory Rates
National Living Wage increased to £12.21 per hour for workers over 21,
National Minimum Wage increased to £10 per hour for workers aged 18–20
Statutory pay
Statutory Sick Pay increased to £118.75 per week,
Statutory Maternity Pay increased to £187.18 per week
Neonatal Care Leave
Parents can take up to 12 weeks of paid leave if their baby is admitted to neonatal care within the first 28 days after birth
Employment Rights Bill
The Employment Rights Bill (ERB) is expected to receive Royal Assent in mid-2025. The ERB includes reforms to:
• Unfair dismissal
• Flexible working
• Guaranteed hours for zero-hours workers
• Fire-and-rehire practices
• Sick pay rights
Tribunals
Tribunals can increase or reduce compensation by up to 25% for failure to comply with collective consultation requirements
Pension Schemes Bill
The Government will introduce a Pension Schemes Bill in 2025 to merge pension assets into "megafunds".
Other changes include:
• Consultation on a "right to switch off"
• Changes to employer national insurance contributions
• Changes to tribunal compensation limits and statutory redundancy pay
•Requirements for employers to offer reasonable notice for shifts
•Requirements for employers to compensate for short-notice cancellations or changes