Business surgery: Key employment law changes for 2025 by Atkins Dellow

In recent years, reform in employment law has progressed slowly while parliamentary focus was directed elsewhere. However, 2025 now appears to be the turning point for a fairer and more flexible working environment.

Enhanced Flexible Working Rights

Back in April 2024, the government began significant reforms by enhancing the right to request flexible working. The key changes introduced were:

Immediate Eligibility: The removal of the 26-week service requirement means that all employees now have the right to request flexible working from day one.

More Frequent Requests: Employees can now submit two flexible working requests within any 12-month period, eliminating the previous one-year wait between requests.

Reduced Justification: There is no longer a need for employees to explain how the change might impact the business.

Mandatory Consultation: Employers are now required to engage with employees before refusing a request.

Alongside these measures, the government also extended protections for employees on maternity, shared parental, paternity, or adoption leave. For the duration of their leave—and for 18 months following the birth or adoption—if an employee is made redundant, the employer must offer any suitable alternative vacancies rather than simply advising of their existence.

Labour’s Employment Rights Bill

Following a change of government, Labour wasted no time in advancing its “Plan to Make Work Pay.” On 10 October 2024, the government unveiled the Employment Rights Bill—a landmark proposal designed to modernise the UK’s employment rights framework to reflect the changing world of work. Key proposals within the Bill include:

Default Flexible Working: Establishing flexible working as the default arrangement.

Zero-Hours Contract Protections: Strengthening rights for workers on zero-hours contracts.

Bereavement Leave: Introducing a new statutory right to bereavement leave.

Immediate Sick Pay: Ensuring that sick pay is available from the first day of sickness.

Faster Unfair Dismissal Claims: Removing the two-year qualifying period for unfair dismissal claims.

Instant Paternity and Parental Leave: Making paternity and parental leave available from day one of employment.

The Bill is currently making its way through Parliament, with many of its provisions expected to become law by the end of 2025 or early 2026.

Raising the National Minimum Wage

In parallel with these legislative efforts, the government has confirmed an increase in the National Minimum Wage. Effective 1 April 2025, the new rates will be as follows:

Workers Aged 21 and Over: A minimum of £12.21 per hour.

Workers Aged 18-20: A minimum of £10.00 per hour.

Workers Aged 16-17: A minimum of £7.55 per hour.

These increases are designed to outpace inflation, with the hourly rates for the younger age groups rising by more than 15%. With these developments—from enhanced flexible working rights to the ambitious proposals of the Employment Rights Bill and the significant wage increases—the reforms set out for 2025 signal a robust commitment to modernising UK employment law and securing fairer conditions for all workers. For more information about the Employment Law and how they might affect your business call to speak with our Employment Law team on 0330 912 8338 or visit https://atkinsdellow.com/employment-law/

Adrian Green, Partner at Atkins Dellow