Key dates and updates for employment law in 2025
These changes range from adjustments in the National Minimum Wage (NMW) and other statutory increases to the introduction of neonatal care leave. It is crucial for HR professionals and employers to stay informed and ensure compliance with these new regulations to avoid potential penalties and support their workforce effectively.
Below, we outline the key updates and their implications.
Gender pay gap reporting
The Gender Pay Gap illustrates the difference between the average earnings of men and women within an organisation. It is a legal requirement for organisations that meet the reporting criteria to publish their gender pay gap information. Organisations that fail to report can face enforcement action and damage their reputation.
The Gender Pay Gap Reporting Regulations were introduced in 2017. The purpose of the reporting is to examine the difference between the average earnings of men and women across an organisation. Under the regulations, using six differing measures, organisations with 250 employees or more must provide a snapshot on a given date.
In addition to detailing what their gender pay gap is, some organisations must also include a narrative on the reasons for their gender pay gap. Other employers can choose to provide additional reasoning for their gender pay gap and set out measures on how they plan to reduce the gap moving forward.
Organisations have 12 months to release their gender pay gap figures from the specified snapshot date. Voluntary and private sectors have a snapshot date of 5 April, while the public sector’s date is the 31 March. This means public sector organisations need to publish their gender pay gap by 30 March and voluntary and private sector organisations must publish by the 4 April. The gender pay gap report must be published on the organisation’s website and on the gender pay gap reporting portal on the GOV.UK website.
National Minimum Wage (NMW)
From the 1 April 2025, the NMW will increase to:
- £12.21 for workers aged 21 and over
- £10.00 for workers aged between 18 and 20
- £7.55 for workers under the age of 18
- £7.55 for apprentices under 19, or over 19 and in the first year of the apprenticeship
The lower earnings limit (the weekly earnings threshold for qualifying for all these payments other than maternity allowance) will be £125. While not a legal change, employers signed up to pay the Real Living Wage must increase pay to £12.60 in the UK and £13.85 in London by 1 May if they wish to retain their accreditation from the Living Wage Foundation.
Statutory increases
Traditionally, the statutory increases take effect from the 1 Sunday in April, which is the 6 April in 2025. The onus is on HR professionals to ensure the policies and procedures are updated to reflect these changes. HR professionals also need to ensure that any employees who are currently on statutory adoption, paternity, maternity, shared parental leave, parental bereavement, and sick leave receive the specified increase.
From the 6th of April, the following increases apply:
- Statutory adoption, paternity, maternity, shared parental leave, and parental bereavement pay increases to £187.18.
- The lower earnings limit for maternity allowance will remain at £30 a week.
- Statutory sick pay increases to £118.75.
- Statutory redundancy pay will also increase, although the new rate has not been published yet. Any redundancies calculated after 6 April 2025 will need to be calculated using the new rate.
Neonatal care leave
The Neonatal Care (Leave and Pay) Act 2023 and its supporting legislation apply in England, Wales, and Scotland. Neonatal care leave is available to the parents of a child born on or after 6 April 2025. This leave is designed to assist new parents whose baby requires medical care in hospital. The leave is also available when medical care is being administered in any other location, provided:
- The child was an inpatient in hospital and the care continues to be administered once the child leaves hospital;
- The care is under the direction of a consultant; and
- The care includes ongoing monitoring by, and visits to the child from, healthcare professionals arranged by the hospital where the child was an inpatient.
Employees can take one week’s neonatal care leave for every uninterrupted week their baby receives neonatal care, taken in week-long increments. The minimum period of neonatal care leave is one week, while the maximum period is 12 weeks. From its introduction on 6 April 2025, the weekly rate of statutory neonatal care pay is £187.18, or 90% of average weekly earnings where this figure is less than £187.18. This rate will increase annually every April in line with statutory payments for other types of family-related leave.
The right to neonatal leave and pay applies in three areas:
- In a birth situation;
- To adoptive parents;
- Through a surrogacy arrangement.
Employees taking, or seeking to take, neonatal care leave have similar rights and protections to those requesting other family-related leave. These include:
- Protection against dismissal and detriment for requesting or taking a period of neonatal care leave, or if the employer believes that the employee is likely to take neonatal care leave;
- Special redundancy protection.
Employment Rights Bill
Royal Assent to the Employment Rights Bill is anticipated to take place in the summer of 2025 at the earliest. Consultations and supporting regulations regarding the proposed amendments to the Employment Rights Bill will take place throughout the year, although the majority of the provisions will not take effect until 2026. It is important to keep ahead of the curve and start looking at internal policies and procedures now, so that you are ready when the provisions take effect.
The proposed amendments to the Employment Rights Bill are wide and far-reaching and cover multiple areas, such as zero-hour contracts, ending fire and rehire practices, day-one rights, statutory sick pay (SSP), flexible working, collective redundancies, sexual harassment, bereavement leave, trade union rights, and TUPE/outsourcing.
Equality (Race and Disability) Bill
The introduction of mandatory ethnicity and disability pay reporting is designed to offer the full right to equal pay for ethnic minorities and disabled people. The Government has stated that it intends to publish the first draft of this Bill in 2025 during this parliamentary session, which ends in July 2025.
The upcoming changes in employment law bring significant advancements in supporting employees and promoting equality in the workplace. The introduction of neonatal care leave ensures that new parents have the necessary support during critical times when their baby requires medical care. The proposed amendments to the Employment Rights Bill and the Equality (Race and Disability) Bill aim to enhance workers’ rights, provide greater job security, and promote fair treatment for all employees.
How our HR experts can help
As these legislative changes take effect, it is crucial for organisations to stay informed and proactively update their employees as well as the policies contained in their Employee Handbooks and their procedures. By doing so employers can ensure compliance, foster a supportive work environment, and contribute to a more equitable and inclusive workforce.
If you would like to speak with one of our HR specialists regarding updating your Employee Handbook or you require general HR support, please do not hesitate to get in touch.