2024 year in review
Before we take a look at the upcoming and anticipated changes, let’s first ensure we have fully taken stock of the changes rolled out in the last 12 months.
In April 2024 employment law made the headlines when Labour made flexible working a ‘day one right’. In practice the changes made enables employees the right to make a flexible working request from their first day of employment, removing the need for 26 weeks service. Employers are still able to refuse a flexible working request based on the prescribed business reasons.
There were also further changes in relation to holiday and holiday pay, with employers once again being able use the 12.07% holiday accrual calculation for irregular hours workers and part-year workers. The return of ‘rolled up’ holiday pay for irregular hour workers was also announced. Both of these changes were effective for holiday years starting on after April 2024, therefore businesses with holiday years starting in January are now also able to utilise these approaches.
Carers Leave was introduced, providing employees the statutory right to request 5 working days unpaid leave in any 12-month rolling period. This is a day one right and applies to anyone who is the carer for a person with a long-term care need.
Autumn 2024 also brought amendments to the Equality Act, granting workers enhanced protection against sexual harassment. Employers must take all reasonable steps to prevent harassment from occurring, including from third parties. Sexual Harassment is now also included as one of the protected disclosures covered by whistleblowing.
Upcoming changes in 2025
Last year we saw the Labour Government pledge to draft a new employment bill in their first 100 days. The focus of this new bill is on two key areas, financial measures to ‘make work pay’ and enhancement of employment rights.
We now take a look at the changes to employment law which will come into effect in 2025 and beyond.
Increases to NMW/NLW and NI
From 01 April 2025 the national living wage rate (21 years +) will increase to £12.21 per hour, while the national minimum wage (18 to 20 year-olds) is increasing by a record 16.3% to £10.00 per hour.
The Treasury has outlined that these changes are the first step in aligning the national minimum wage and national living wage to create one single adult wage rate, which is expected to happen in the next few years.
Employers will also be facing higher National Insurance contributions come April, with employer contributions rising from 13.8% to 15%. The threshold will also be decreasing from £9,100 to £5,000 per annum.
Neonatal Care (leave and pay)
Parents of new-born babies, born on or after 6 April 2025, who require neonatal care for at least seven days will be eligible to take up to 12 weeks of Neonatal Care Leave as a day one right.
Statutory Neonatal Care Pay will be available to employees who have at least 26 weeks of continuous service with their employer and meet the minimum earnings threshold (currently £123 per week).
Neonatal Care Leave and Pay is available to both parents and in addition to any maternity, paternity or shared parental leave.
Other changes on the horizon
There are currently a number of consultations taking place in relation to planned new workplace rights and protections set out in the Employment Rights Bill.
The Government is aiming to tackle concerns around zero-hours contracts, unfair dismissal and controversial 'fire and rehire' practices. Additionally, it also aims to enhance trade union rights, improve redundancy protection and clarify employment status classifications.
It is important that business start to prepare for these upcoming changes by reviewing their current policies and processes.
Next steps
Ensure your employment practices are compliant by speaking to a member of our HR Consultancy team. Our highly experienced consultants offer tailored guidance and can help ensure your policies and contracts of employment are not only up to date with legislation, but suit the needs of your business.
