
Recent and upcoming changes to employment law you need to know
Tools & Resources
In a nutshell…
- The UK's employment law transformation continues at pace, with a roadmap now published for the Employment Rights Bill to outline timescales for further measures.
- More consultations are expected in late 2025 into 2026 on TUPE reform, umbrella regulation, and pro-rate part-time pay.
- Some changes are already in force including updates to tribunal rules, sick pay and minimum wage increases, and extended protections for parents and carers.
- Further reforms under the Employment Rights Bill will include new rules around unfair dismissal, flexible working, zero-hours contracts, and sexual harassment.
- Northern Ireland-based businesses will see similar reforms, though details and timescales will vary from the UK Bill.
Employment law in the UK continues to evolve at pace, with major updates already introduced in 2025. A clear roadmap has now been laid out for further reforms between 2026 and 2027 for businesses in England, Wales and Scotland.
Some key changes so far in 2025 include updates to tribunal rules, sick pay and minimum wage increases, and extended protections for parents and carers. Even more substantial reforms are coming under the Employment Rights Bill, including new rules around unfair dismissal, flexible working, zero-hours contracts, and sexual harassment.
Here, we highlight the most significant employment law developments that could affect your business to help you stay one step ahead.
Click each heading to read the changes in employment law:
1
January 2025
- Employment tribunal procedures were updated on 6 January 2025 – Employers responding to claims must now follow a revised process. Form ET3 submissions must be made online using the MyHMCTS portal (strongly encouraged), by post or in person. They can no longer be made by email.
2
April 2025
- Statutory Sick Pay (SSP) increased to £118.75 per week.
- Statutory family-related pay (e.g. maternity, paternity, adoption, shared-parental and parental bereavement) increased to £187.18 per week.
- National Minimum and Living Wage rates rose:
- 21+: £12.21/hour
- 18–20: £10.00/hour
- 16–17 and apprentices: £7.55/hour
- Accommodation offset rate rose to £10.66/day.
- Changes to statutory guarantee pay and other compensation limits came into effect.
- The Neonatal Care (Leave and Pay) Act 2023 came into force, giving eligible parents up to an additional 12 weeks' leave and pay. This day one right applies when their newborn needs neonatal care for seven or more consecutive days within 28 days of birth, and is in addition to existing statutory parental leave.
3
July 2025
The UK government published its official Employment Rights Bill roadmap, confirming a phased rollout of new laws from late 2025 through 2027. These changes will affect businesses in England, Wales and Scotland.
The most significant changes are summarised in the sections below, but if you prefer, you can read the full roadmap on the Government website.
If your business is in Northern Ireland, you can read the government's paper, 'Good Jobs' Employment Rights Bill - The Way forward. The Bill is expected to be presented to the Assembly in early 2026. Although some similarities exist, some details will be different, and the dates shown below will not apply for Northern Ireland businesses. The CIPD has produced an excellent briefing paper on the key similarities and differences expected.
4
Autumn 2025
- Repeal of Strikes (Minimum Service Levels) Act 2023 and parts of the Trade Union Act 2016, including burdensome balloting and notice provisions.
- Stronger protections against dismissal for participating in legal industrial action.
5
April 2026
- Day one rights for paternity leave and unpaid parental leave will be introduced.
- Collective redundancy protective award will be doubled from 90 to 180 days’ pay.
- Statutory Sick Pay reform – the Lower Earnings Limit and the three-day waiting period will be removed.
- Fair Work Agency (FWA) will be established – the agency will have powers to enforce employment rights, inspect workplaces, and bring tribunal proceedings.
- Whistleblowing protections will be strengthened, including coverage for more workers.
- Simplified trade union recognition and support for electronic/workplace balloting will be introduced.
6
October 2026
- Fire and rehire will become automatically unfair in most cases, unless the employer can demonstrate exceptional financial hardship.
- Employers will need to take 'all reasonable steps' to prevent sexual harassment – including from third parties such as customers or clients.
- New tipping regulations and procurement duties will be introduced to support fairer treatment.
- Stronger rights and access for trade union representatives will be introduced, and employers will be required to inform workers of their right to join a trade union.
- Employment tribunal time limits will be extended from three months to six months.
7
2027 - exact dates to be confirmed
- Day one unfair dismissal rights will be introduced for all employees.
- New rules to address exploitative zero-hours contracts will come into force, including the right to a more stable contract after 26 weeks and compensation for cancelled shifts.
- Regulation of umbrella companies to prevent misuse and enhance worker protections.
- A national system of Fair Pay Agreements will begin, starting with the adult social care sector.
- Mandatory menopause action plans and gender pay gap plans will be introduced - these will be voluntary from April 2026.
- Strengthened pregnancy and maternity protections will be introduced.
- Bereavement leave rights will be introduced.
- Expanded flexible working rights, including reasonable notice for changes and clearer reasons for refusal, will take effect.
- Confidentiality clauses (NDAs) that prevent workers reporting harassment, discrimination or abuse will be unenforceable.
What this means for employers
These changes mark the biggest transformation to UK employment law in a generation. If you run a business, it’s essential to stay proactive:
- Update your policies now to meet the latest legal duties – especially around harassment, leave, and pay.
- Review employment contracts and shift patterns – be prepared for zero-hours and fire-and-rehire restrictions.
- Train your managers to understand Day 1 rights, flexible working expectations and tribunal risk.
- Stay ahead of the curve – more consultations are expected in 2025–26 on TUPE reform, umbrella regulation, and pro-rata part-time pay.
Next steps...
- Contact Croner’s expert advisers with any queries you may have on how these changes affect your business. UMi Sat Nav users get 15% off human resources, health and safety and employment law support – just call 0844 561 8133 and quote UMi discount code CGL28333.
- Learn more about your responsibilities as an employer in our essential guide to recruitment and people management.