As we move into 2025, it’s the perfect time for businesses and HR leaders to plan for the year ahead and adapt to the upcoming changes in employment legislation.
2025 is set to be a significant year, with more clarity expected on the Employment Rights Bill 2025, which aims to enhance employment rights and eliminate exploitative working practices. While many of the reforms require further detail via secondary legislation, public consultation, or updated Codes of Practice, employers must start preparing now. The Bill is expected to bring the most substantial changes to employment protections and working practices in decades.
Key Updates for 2025
Although the bulk of these reforms will not take effect until 2026, businesses should note that:
- The most significant reform—the removal of the two-year service requirement for unfair dismissal claims—is not expected to come into force until Autumn 2026.
- Standard updates like the increase to the National Minimum Wage and annual statutory pay rates for sickness, maternity, and family leave will also come into play this year.
Top 10 Tips for Preparing Your Business in 2025
To help your business stay ahead of the changes, here are ten practical steps:
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- Develop a strategic HR plan which identifies current and future needs and that aligns with the business objectives and ensures legal compliance to the employment reforms
- Stay informed of and understand the reforms set out in the Bill as they progress through parliament, keeping a close eye on updates regarding the implementation timeline and specific details of the reforms.
- Sign Up for Updates
Monitor the progression of the Bill by tracking its progress, identifying any roadblocks and how the business can ensure legal compliance. Subscribe to our newsletter to receive the latest news, interpretations, and practical guidance on the Employment Rights Bill. - Impact assessments will be vital to establish the extent each of the reforms will impact the business and will help in the development of strategies to mitigate any potential negative impacts they may have on the business and your workforce.
- Scenario planning and financial forecasting will be vital to manage the budget implications of the reforms
- Conduct a comprehensive audit of your existing HR policies and procedures to identify areas that require updating or creating to comply with the new legislation.
- Review existing employment documentation which includes your contract of employment, employee handbook and current policies, procedures and working practices
- Review business relations with the Trade Union where they exist to understand how this may change moving forward
- Engage and consult with your workforce which not only includes collaborating with key stakeholders, such as the Leadership team and Trade Unions, but also discuss the potential impact of the reforms with the workforce and seek their input on proposed changes. It is important to provide clear and consistent messaging across all stakeholder relationships
- Carry out essential training to HR and Line Managers shortly before the reforms come into force and ensure that both line managers and your HR team, are equipped with practical guidance on how to implement the new legislation into their work.
Tools to Support Your Planning
By taking these proactive steps, your business will be well-prepared to navigate the changes brought about by the Employment Rights Bill.
To help you plan effectively, download our 2025 People Plan Template, a user-friendly document designed to help outline your key HR priorities for the year.
For more guidance, check out our article on the Employment Law Timetable, which provides a comprehensive overview of legislative changes and details of the reforms proposed by the Employment Rights Bill.
We’re Here To Help
At HR Solutions, we’re here to support you through the upcoming employment law changes in 2025.
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