Key UK Employment Law Changes 2025

UK Employment Law Changes 2025

Key UK Employment Law Changes 2025

Navigating the New Landscape: Key UK Employment Law Changes Employers Must Know

The world of work continues to evolve—and UK employment law is evolving with it. Several significant legislative changes have expanded employee rights and increased employer obligations. Staying informed isn’t just about legal compliance—it’s about fostering a fair, efficient, and future-ready workplace.

Here’s a breakdown of the most important legal updates every employer should know:

Flexible Working: A Day-One Right

The right to request flexible working is now available from the first day of employment. Employees can make two requests per year, and employers must consult with the employee before refusing. The decision period is reduced to two months. Employers should update their policies and train managers to handle requests fairly and lawfully.

Carer’s Leave: A New Statutory Entitlement

Employees now have the right to one week of unpaid leave each year to care for a dependant with a long-term care need. This is a day-one right and does not require medical evidence—employees can self-certify. Employers must update policies and ensure protection from detriment for staff exercising this right.

Redundancy Protections for Pregnant and Family Leave Employees

Employees who notify their employer of pregnancy or take maternity, adoption, or shared parental leave are entitled to priority status for suitable alternative roles in redundancy situations. This protection can extend up to 18 months after birth or adoption. Employers must track affected employees and carefully handle redundancy processes to avoid unfair dismissal claims.

Right to Request Predictable Working Patterns

Workers with at least 26 weeks of service and unpredictable working hours (including agency staff and zero-hours workers) will be able to request a more predictable working schedule. Employers must follow a statutory process for handling such requests and provide legally sound justifications if refusing.

Duty to Prevent Sexual Harassment

Employers now have a positive legal duty to take reasonable steps to prevent sexual harassment in the workplace. Failing to comply could result in compensation uplifts of up to 25% in Employment Tribunal claims. Risk assessments, updated policies, and regular anti-harassment training—especially for managers—are essential to meet this duty.

Allocation of Tips and Gratuities

Employers must now distribute 100% of tips, gratuities, and service charges to staff, without deductions except for tax. A written policy must be provided to employees, and tip distribution records must be kept for three years. While a tronc system isn’t mandatory, it can support fair and compliant tip allocation.

Holiday Pay for Irregular and Part-Year Workers

New rules now permit the use of rolled-up holiday pay—calculated at 12.07% of hours worked—for part-year and irregular-hours workers. This must be shown as a separate item on payslips. Contracts and payroll systems should be updated accordingly to avoid underpayments and ensure transparency.

How Employers Can Stay Compliant

These changes reflect a shift toward greater fairness and clarity in the workplace. To remain compliant and build a strong employment brand, employers should:

  • Review employment contracts and update policies
  • Train managers on handling flexible work and leave requests
  • Refresh grievance, harassment, and redundancy processes
  • Maintain clear, up-to-date payroll and record-keeping practices

By embracing these changes, businesses not only reduce legal risk but also improve workplace morale, boost retention, and attract new talent.

Would you like help updating your employment policies or delivering training to your managers? Contact NA Law Solicitors for expert guidance tailored to your business.

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