Coppice HR
HR NewsMajor Employment Law Changes Coming in 2025: What Employers Need to Know

The workplace is set for some significant changes in 2025 and as an employer, it’s crucial to stay ahead of the curve.
National Insurance and Minimum Wage Increases
Starting in April 2025, there will be several important changes to be aware of, including a 6.7% increase in the national minimum wage for those over 21, rising to £12.21 per hour. In addition, changes to the NI thresholds. As an employer, it’s essential to budget for these changes and ensure your payroll processes are updated.
New Rules To Prevent Sexual Harassment
All employers in England, Scotland and Wales must take steps to prevent sexual harassment at work, this came into effect on 26th October 2024.
What does this mean for you?
- Make sure policies are in place and look at risk assessments.
- Provide training for managers and employees.
- Promote a safe work environment and establish procedures for handling situations involving third parties.
HR Action: Be prepared, the new Employment Rights Bill promises even more changes on the way in 2026.
Enhanced Neonatal Leave for Parents of Babies in Neonatal Care
From April 2025, parents of babies who need neonatal care will have enhanced support.
What’s new?
- Neonatal leave will be paid for up to 12 weeks at the statutory neonatal pay rate, similar to statutory maternity and paternity pay.
- Parents get the right to neonatal leave and pay from day one.
HR Action: Start preparing for this change by reviewing your policies and supporting working parents better!
Flexible Working Changes Under the Employment Rights Bill
Flexible working has been a hot topic, and now it’s set to become even more prominent. Under the Employment Rights Bill, employers will need to:
- Handle requests more reasonably.
- Explain refusals clearly.
- Consult employees before rejecting requests.
HR Action: Anticipate more requests and train managers to handle them fairly.
Fire and Rehire Laws
Dismissing employees to rehire them on new terms could soon be considered automatically unfair.
What can you take away from this?
- Avoid “fire and rehire” strategies, unless absolutely necessary.
- Check contracts before issuing and avoid ‘fire and rehire’ strategies
HR Action: Plan ahead and consult legal advice before making major contract changes.
Related Article: ‘The Future of HR: What 2024 Taught Us and What’s Next for 2025’
Bereavement Leave Changes
The Employment Rights Bill is also considering changes to bereavement leave. These will include:
Losing a loved one is tough, and the Employment Rights Bill aims to help. This will include:
- Bereavement leave extended beyond child loss to include loved ones (specific relationships TBD).
HR Action: Align your compassionate leave policies with this upcoming change. Supporting your team in hard times matters.
Zero-Hours Worker Protections
Zero and low-hours workers are getting fresh protections, and this could have a big impact on your business.
- Right to guaranteed hours if you work regular shifts.
- Reasonable notice of shifts and cancellations.
HR Action: This could mean higher costs and less flexibility, so start assessing your workforce plans now.
Sick Pay Changes
Sick pay laws are getting a major update, and it’s important for HR teams to prepare for the changes ahead:
- No more waiting period: The three-day waiting period for sick pay is being abolished, so employees can access SSP right away.
- More eligibility: The earnings limits for qualifying employees are being scrapped, which means more people will be eligible for sick pay.
HR Action: Prepare for increased costs and review absence policies. Maybe it’s time to introduce enhanced sick pay?
Redundancy Consultation Reforms
Making redundancies? Changes to redundancy consultation rules will require employers to make sure they’re following proper procedures when dismissing employees:
- The “one establishment” rule is being removed.
- Redundancies across multiple sites = collective consultation.
HR Action: Plan ahead and update redundancy processes. Communication is key!
Employment Rights Bill: What’s Still to Come?
While the Employment Rights Bill is still under consultation and will likely be implemented in 2026, some exciting potential changes are on the horizon:
- Ethnicity and disability pay gap reporting.
- A full review of the parental leave system.
- A potential “right to disconnect” to combat workplace stress and burnout.
These are set to be game-changers for employers and employees alike, and staying informed will ensure you’re prepared for the future.
How Can Your Business Stay Ahead of Employment Law Changes?
With all these proposed changes to employment law, it’s clear that the next few years will require employers to be proactive. Whether it’s revising policies, ensuring compliance, or creating a more inclusive work environment, there’s a lot to manage.
At Coppice HR, we’re here to help you navigate these changes smoothly. From updating your policies to providing advice on managing employee rights, we can make sure your business remains compliant and supports its workforce effectively.
Reach out to Coppice HR by emailing paul@coppicehr.com or calling 07814 008478 to turn these changes into a positive, long-lasting impact for your business and employees.
Stay informed and get ready for a smoother transition into the new era of employment law!