Key employment law updates | March 2025

Welcome to our monthly update, where we share upcoming changes to employment law.

Amendments to the Employment Rights Bill ("ERB")

Following responses to consultations launched back in October 2024, the Government has proposed a number of amends to the ERB which we discuss in detail here. In summary, the proposed amends are:

• A new right for zero-hours or qualifying "low hours" workers:
  • to be offered guaranteed hours where they work regular hours over a reference period (likely to be 12 weeks);
  • to receive reasonable notice of shifts, and changes to shifts; and
  • to receive a payment each time a shift is cancelled, moved or shortened at short notice.

Much of the detail as to how exactly these measures will work will be subject to secondary legislation which hasn't been published (for example, we still don't know what hours will qualify as low hours or what "short notice" means).

• Statutory sick pay will become payable from the first day of sickness absence (instead of the fourth working day) and shall be payable at a rate of 80% of normal weekly earnings to workers who earn less than £123 per week. Presently, employees earning less than £123 per week (this will rise to £125 per week from April 2025) are not entitled to receive statutory sick pay.

• Collective consultation measures will change as follows:
  • the Government is proposing to drop its plan to introduce interim relief as a remedy for claims for failure to inform and consult in relation to collective redundancies in the context of "fire and rehire" exercises; and
  • it is proposed the protective award for failure to inform and consult in relation to collective redundancies will double, from 90 to 180 days gross pay per employee.

• Regarding trade unions, the Government is proposing:
  • an amendment to streamline the trade union recognition process, keeping the lower threshold for recognition by requiring a union to simply show that 10% of a proposed bargaining unit are union members (with no need for majority support). The Government had been consulting on lowering the support threshold to 2% but the proposed amendment will not state a figure and will simply give the Secretary of State the power to lower the 10% threshold;
  • to make the trade union right of access to the workplace a digital, as well as a physical one;
  • to require trade unions to provide a 10-day notice period for strikes/industrial action (currently 14 days' notice is required);
  • to allow trade unions to utilise e-balloting; and
  • to extend strike mandate expiry from 6 to 12 months.

The Government had promised in its election manifesto to bring in a "right to switch off", which would have given employees a right to disconnect from work-related communications outside working hours. That pledge did not make it into the ERB when published, and recent media reports suggest the right to switch off has been dropped.

We will continue to keep you updated with any further changes. Whilst many changes proposed by the ERB are not due to come into effect until 2026, it is prudent for employers to stay updated on the key developments, as well as consider reviewing their workplace policies and providing additional training to staff and managers on the proposed new rights and their responsibilities.

Bereavement leave after miscarriage

Parents currently have a statutory right to two weeks' paid bereavement leave if they lose a child or experience a stillbirth after 24 weeks of pregnancy. The Government is now expected to back a proposal to update this right, to give parents the right to two weeks of bereavement leave if they have suffered a pregnancy loss before 24 weeks. We expect the new right will be introduced as an amendment to the ERB.

The Government has consistently expressed a wish to make work more "family friendly". Employers should consult their own family policies for a reminder of their existing offering and keep them under review as the ERB continues to develop.

Neonatal care leave

From 06 April 2025, parents will have a right to paid leave if their baby requires neonatal care. The care must take place within the first 28 days of birth and continue for at least seven complete days. Parents will be able to take one week of leave for each week the baby receives neonatal care without interruption, up to a maximum of 12 weeks’ paid leave.

Increases to statutory rates and limits

This is always a busy period for statutory rates and cap changes. Key adjustments include:

• National Minimum Wage rates from 01 April 2025:
  • (21+) - £12.21 per hour
  • (18-20) - £10.00 per hour
  • (16-17) - £7.55 per hour
  • Apprentices - £7.55 per hour

• Employers' national insurance contributions will rise from 6 April 2025, from 13.8% to 15% on 6 April 2025. The threshold at which employers become liable to pay NICs will drop from £9,100 to £5,000, until 5 April 2028.

• Statutory sick pay will rise from 6 April 2025, to £118.75 per week, with the lower earnings limit to qualify for statutory sick pay rising to £125 per week.

• The cap on a week’s pay for statutory redundancy pay calculations will increase, from 06 April 2025, from £700 to £719. The maximum limit for compensatory awards in unfair dismissal claims will rise from £115,115 to £118,223.

• Statutory guarantee pay will increase from £38 to £39 per day.

It goes without saying, but employers should familiarise themselves with these changes to ensure compliance on an ongoing basis.

ACAS report on neurodiversity

ACAS has published a report on neurodiversity at work, which documents and highlights areas of good practice, emphasising the importance of taking steps (and how to do so productively) to support neurodivergent employees.

The report highlighted that between 15% and 20% of UK adults are neurodivergent. It found that training and proactive action is the most beneficial way to promote an inclusive working environment, and that line managers are key to providing that support. Regarding the proactive management of neurodiversity, the report concluded that discussions surrounding reasonable adjustments should not require a formal diagnosis or disclosure but should instead be an open and collaborative exercise at all stages of the working relationship.

Equality (Race and Disability) Bill Consultation

A new consultation has been launched, requesting feedback on how to introduce mandatory ethnicity and disability pay reporting for large employers (250+ employees). The consultation is open until 10 June 2025 inviting feedback from employers, public sector bodies, trade unions, and affected individuals. For more information see here.

Available training for managers

Given the significant forthcoming changes brought about by the Employment Rights Bill, there is no better time to upskill your managers via our transformational management development programmes to reduce risk, increase engagement, and enhance motivation. Our programmes involve utilising unique accelerated learning techniques that will boost people management skills for years to come, suitable for supervisors up to board level.  Furthermore, our seamless programmes link in with your policies and templates to bring about impactful change (with practical templates to bring your policies to life, if required). We link below further information on our flagship programmes:

Details of our current programmes are as follows:

• 21^st Century: An innovative four-day management development programme designed to equip managers with essential skills, knowledge, and behaviours to effectively manage performance and improve workplace culture. 

• Gender Diversity: We know that managers and employees lack confidence talking about gender diversity and managing a diverse workforce. That is why we've created this bespoke training programme to help you get ahead and shape your culture.

• Inclusive Leadership: We may not notice our unconscious biases, but they still influence our actions and beliefs. For leaders, it is crucial to recognise those biases and lead inclusively which is the focus of our one-day Inclusive Leadership programme.

• Prevention of Sexual Harassment: With a new duty to take proactive steps to prevent sexual harassment (such as training), it is more important than ever to act. This programme equips your workforce with the tools needed to identify and prevent workplace sexual harassment.

• Upskill Managers to Manage: We can support you to navigate the challenges of integrating teams effectively to maximise post-integration success, emphasising the need for strong management, strategic alignment, and collaboration to overcome cultural differences and mitigate risks in an increasingly competitive market.

• Improve Employee Heath & Resilience: Improving the health and wellbeing of your people is a key requirement to driving a successful business. By educating employees on health and wellbeing strategies, we can help you gain the competitive edge as your people improve their energy, productivity and overall wellbeing. Our wellbeing programmes deliver educational, fun and interactive sessions that are empowering and revealing.

Please contact Joanne Boyle if you would like to discuss further how we can support your organisation.