Employment Law Update: Key Changes from the Employment Rights Bill and Autumn Budget - For Employees
5 February 2025 | Business & Workplace |
At Fishers Solicitors, we’ve compiled answers to some of the most pressing questions about recent updates to employment law. These changes, introduced through the Employment Rights Bill and Autumn Budget, are set to impact employees and employers alike. Here’s what you need to know.
Q: What changes are coming to the National Minimum and Living Wage in 2025?
A: From 1 April 2025, the following increases will apply:
- 21 and Over (National Living Wage): Increases by £0.77/hour (6.7%), from £11.44 to £12.21.
- 18–20-Year-Olds: Rises by £1.40/hour (16.3%), from £8.60 to £10.00.
- 16–17-Year-Olds & Apprentices: See an 18% increase, moving from £6.40 to £7.55/hour.
- Accommodation Offset: Daily rate increases by £0.67, reaching £10.66.
Impact: Employees will see higher wages, while employers need to prepare for increased payroll costs.
Q: What new employment rights will be available from day one of employment?
A: The Bill introduces several day-one rights, including:
- The ability to bring unfair dismissal claims.
- Access to Statutory Sick Pay (SSP) and unpaid leave (parental, paternity, and bereavement).
Impact: Employees gain greater protections immediately upon starting their jobs.
Q: What’s changing with unfair dismissal protections?
A: The two-year service requirement to bring an unfair dismissal claim is being removed. However, employers can still use probationary periods (up to nine months) with:
- A light-touch dismissal process during probation.
- Potentially lower compensation for dismissals during this period.
Additionally, there are enhanced protections for pregnant employees and those recently on maternity leave.
Impact: Employees have stronger job security, particularly early in their roles, while employers must ensure fair practices during probation periods.
Q: Are there new rules for zero-hours contracts?
A: Yes, the Bill introduces measures to limit the exploitation of zero-hours contracts:
- Guaranteed-hours contracts based on a 12-week reference period.
- Compensation for early shift cancellations or changes.
- Employees may still choose zero-hours contracts if preferred.
Impact: Employees gain more predictable working arrangements, while employers must revise contract structures.
Q: How are flexible working rights changing?
A: Employees continue to have the day-one right to request flexible working. Employers now face a reasonableness test when refusing such requests.
Impact: Employees have better access to flexible arrangements, and employers must justify refusals.
Q: What updates are being made to parental and bereavement pay?
A: From 6 April 2025, statutory pay rates increase as follows:
- Maternity, Paternity, Shared Parental, and Adoption Pay: Maximum rate rises to £187.18/week.
- Parental Bereavement Pay: Matches this rate.
Impact: Employees receive improved financial support during family-related leave periods.
Q: What are the new Statutory Sick Pay (SSP) rules?
A: Changes include:
- Eligibility: SSP becomes a day-one right with a reduced earnings threshold of £125/week.
- Rate Increase: SSP rises from £116.75 to £118.75/week.
Impact: Sick pay becomes more accessible, especially for low earners.
Q: What are the new requirements for gender pay gap reporting and menopause support?
A: Organisations with 250+ employees must now:
- Publish gender pay gap action plans.
- Outline support initiatives for menopause-related challenges.
Deadlines:
- Public Sector: Reporting deadline – 30 March 2025 (snapshot date: 31 March 2024).
- Private Sector: Reporting deadline – 4 April 2025 (snapshot date: 5 April 2024).
Impact: Greater workplace transparency and support for employee well-being.
Q: How are protections against workplace harassment being strengthened?
A: Employers must now take stronger measures to prevent harassment, including:
- Recognising sexual harassment as a protected disclosure under whistleblowing laws.
- Strengthening protections against third-party harassment.
Impact: Employees benefit from a safer and more respectful working environment.
Q: What additional reforms are being considered for the future?
A: The Government is reviewing several proposals, including:
- A Right to Disconnect to protect work-life balance.
- Single Worker Status to simplify employee classifications.
- Extending pay gap reporting to include disability and ethnicity.
Timeline: Consultations are set to begin in 2025, with implementation likely by 2026.
Q: How can I stay prepared for these changes?
A: Employees should familiarise themselves with their new rights, while employers need to review and update workplace policies to ensure compliance.
At Fishers Solicitors, we’re here to guide you through these changes. For tailored advice, get in touch with our team of employment law experts: enquiries@fisherslaw.co.uk
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