
Navigating Employment Law in 2025: Key Changes and Implications for Employers 12.05.2025
The landscape of employment law in 2025 remains uncertain, yet one significant development that practices should proactively prepare for is the Employment Rights Bill. This legislation heralds substantial changes that are anticipated to take effect within the next 24 months. Additionally, some practices remain unaware of key updates introduced in 2024, which also warrant attention.
Neonatal Care Leave and Pay
From 6 April 2025, employees have an immediate entitlement (‘day one’ right) to neonatal care leave. This provision allows parents to take an additional 12 weeks of leave if their newborn requires a week or more of neonatal care in a hospital or healthcare setting. To qualify, the newborn must be admitted to neonatal care within the first 28 days post-birth.
This entitlement is supplementary to existing parental leave rights. For example, a father entitled to two weeks’ paternity leave may claim an additional 12 weeks if his baby requires neonatal care. The same applies to mothers, who may add the 12 weeks to their statutory maternity leave entitlement.
Eligible employees will also qualify for 12 weeks of neonatal care pay, comparable to maternity pay eligibility criteria. Employers should approach these situations with sensitivity, actively informing affected employees of their rights. The guidance will be available on Gov.uk from April.
The Employment Rights Bill: A Paradigm Shift
Following the change of Government in 2024, the introduction of the Employment Rights Bill marks a pivotal shift in employment law, fundamentally altering the balance of rights between employers and employees. Set to come into force in 2026 and beyond, the Bill introduces several new employee protections, including:
- Unfair Dismissal from Day One: Employees will gain unfair dismissal rights from the first day of employment (currently after two years), although it is unclear whether redundancy will be included.
- Day One Rights for Parental and Bereavement Leave: Unpaid leave for parental, bereavement, and paternity circumstances will also become a day one entitlement.
- Sick Pay Entitlement: Statutory sick pay will be accessible from the first day of absence (currently after three qualifying days).
- Zero-Hours Contracts: Workers will be entitled to guaranteed hours if working on zero-hours contracts.
- Enhanced Maternity Protection: Dismissal protection for employees on maternity leave will be reinforced.
- Prohibition of ‘Fire and Rehire’ Tactics: Employers will be restricted from dismissing employees to rehire them on altered terms. Consultation will become integral to any contractual changes.
- Flexible Working Rights: Employers will face heightened expectations to accommodate flexible working requests, with the potential introduction of an automatic right to request compressed hours.
- Trade Union Access and Collective Bargaining: Employers will be required to inform employees of their union rights, and unions will gain greater access to workplaces.
- Establishment of the Fair Work Agency: This body will oversee and enforce employment rights.
As the Bill progresses through Parliament, further details will emerge. However, employers are advised to prepare for the inevitable policy revisions, particularly concerning employment contracts and probationary management. Engaging with HR support services will be essential to mitigate risks and ensure compliance.
Key Updates from 2024: Revisiting Recent Employment Law Changes
Many practices remain unaware of critical updates implemented in 2024, including the following:
Holiday Pay for Irregular Hours:
Employers may now use ‘rolled-up’ holiday pay calculated at 12.07% of pay per hour worked. This simplifies the process, replacing the previous requirement of calculating holiday pay based on average pay. It is essential to display this as a separate item on the employee’s payslip.
Carer’s Leave:
Employees now have the right to one week of unpaid leave per year to care for dependents with long-term mental or physical health conditions.
Flexible Working Rights:
Employees can now submit flexible working requests from day one of employment, with up to two requests permitted annually. Employers must respond within two months and are no longer required to justify the impact on the organisation.
Redundancy Protection for Maternity and Parental Leave:
Employees on maternity leave have the right to be offered any suitable alternative role in redundancy situations. From April 2024, this protection extends to employees for up to six months after returning from maternity, shared parental, or adoption leave.
Fire and Rehire Limitations:
Employers must engage in meaningful consultation before implementing changes through dismissal and re-engagement, with the Employment Rights Bill expected to further restrict this practice.
Sexual Harassment:
There is now a positive duty on employers to take all reasonable steps to prevent sexual harassment in the workplace. To ensure compliance, practices should:
- Update bullying and harassment policies to incorporate the new requirements.
- Implement mandatory training on sexual harassment prevention for all staff, including managers and supervisors.
- Conduct annual harassment risk assessments and staff surveys.
- Monitor compliance with training completion and policy adherence.
Tribunals may impose a 25% uplift on compensation awards if employers fail to demonstrate that reasonable preventive measures were taken.
Preparing for the Future
The forthcoming changes represent a significant realignment of the employer-employee relationship, shifting the balance towards employees. Practices should actively prepare for these legislative adjustments by updating contracts, policies, and management practices. Engaging with HR experts will be crucial to ensure compliance and safeguard organisational resilience.
For tailored guidance on implementing these changes, please consult your HR support provider.
How General Practice Solutions Can Support Your Practice with Employment Law Changes
As the landscape of employment law continues to evolve, practices face significant challenges in ensuring compliance and adapting to new legislative requirements. General Practice Solutions (GPS) offers comprehensive HR support designed to help practices manage these changes effectively, reduce risk, and maintain operational efficiency.
- Proactive Policy Updates and Compliance Management
The Employment Rights Bill and other legislative changes introduce substantial updates to employee rights, including:
- Neonatal Care Leave and Pay
- Day One Rights for Unfair Dismissal, Sick Pay, and Parental Leave
- Flexible Working and Zero-Hours Contracts
- Redundancy Protection for Maternity and Family-Related Leave
- Strengthened Trade Union Rights and Collective Bargaining
- Sexual Harassment Prevention and Employer Responsibilities
How GPS Supports Compliance:
- Policy Review and Revision: Our HR experts regularly review your existing policies to ensure they reflect the latest legal requirements. We proactively update employee handbooks and contracts, saving your practice time and reducing the risk of non-compliance.
- Customised Guidance: We interpret new legislation and provide practical advice on how to implement necessary changes in your practice. This includes tailored support for contracts, flexible working requests, and parental leave entitlements.
- Documentation and Record Keeping: GPS ensures that your practice has the appropriate documentation and record-keeping processes to evidence compliance, including leave requests, policy amendments, and training records.
- Training and Awareness Initiatives
With new rights and obligations being introduced, it is crucial for employers and staff alike to understand their responsibilities.
How GPS Supports Training:
- Staff and Management Training: We deliver bespoke training sessions to ensure that both line managers and staff are fully aware of their new rights and responsibilities. This includes training on neonatal care leave, flexible working rights, and preventing sexual harassment.
- Supervisor Preparedness: We specifically train managers to handle new leave entitlements compassionately and consistently, ensuring that staff are supported during challenging times.
- Ongoing Updates and Briefings: GPS provides concise, regular updates on legal developments, helping your team stay informed without being overwhelmed by legislative jargon.
- Expert Guidance on Handling Sensitive Situations
Employment law changes often introduce new challenges related to employee relations and dispute management. GPS assists in navigating these complexities with tact and professionalism.
How GPS Supports Sensitive HR Matters:
- Compassionate Employee Support: We help practices manage difficult conversations with employees regarding leave entitlements, flexible working requests, and policy changes, ensuring that staff feel supported and valued.
- Conflict Resolution: In cases where disputes arise, GPS offers mediation and resolution strategies, maintaining professional relationships and minimising disruption.
- Mitigating Risk: Our expert advice on handling redundancy situations, particularly in light of enhanced protection for maternity and family-related leave, helps practices take a fair and compliant approach.
- Strategic Workforce Planning and Risk Mitigation
The introduction of guaranteed hours for zero-hours contracts and restrictions on ‘fire and rehire’ practices will significantly impact workforce planning. GPS helps practices adapt to these changes while maintaining flexibility and operational efficiency.
How GPS Supports Strategic Planning:
- Contractual Adjustments: We assist in drafting contracts that reflect new statutory rights while allowing flexibility for practice needs.
- Risk Assessments: GPS conducts thorough risk assessments to identify areas where employment law changes could expose your practice to potential liabilities.
- Support with Flexible Working Policies: We work with you to establish robust processes for managing flexible working requests and compressed hours, balancing employee rights with practice continuity.
- Safeguarding Your Practice Against Legal Claims
With the strengthened protection against dismissal and the prohibition of ‘fire and rehire’ tactics, practices face heightened scrutiny. GPS ensures that your HR processes stand up to legal and regulatory expectations.
How GPS Supports Legal Compliance:
- Expert Review of Dismissal and Disciplinary Procedures: We help practices implement fair and transparent processes that minimise the risk of legal challenges.
- Enhanced Sexual Harassment Safeguards: Our service includes developing comprehensive anti-harassment policies, delivering targeted training, and conducting workplace audits to identify potential issues proactively.
- Documentation for Tribunal Defence: Should disputes arise, we support your practice with comprehensive documentation and representation, ensuring that all actions are justified and well-recorded.
- Efficient and Compliant Payroll Management
Changes to statutory sick pay, holiday pay, and carers’ leave require accurate and compliant payroll processing.
How GPS Supports Payroll Accuracy:
- Payroll Adjustments: We ensure that your payroll system is configured to reflect new statutory entitlements, including rolled-up holiday pay and day one sick pay.
- Regular Payroll Audits: Our team conducts periodic audits to verify that payments are compliant, accurately calculated, and clearly documented.
- Employee Payslip Accuracy: We ensure that rolled-up holiday pay is clearly itemised on payslips, adhering to statutory requirements.
Why Choose GPS for Your HR Needs?
Navigating the evolving employment law landscape requires expertise, diligence, and forward planning. GPS provides:
- Dedicated HR Support: Our experienced team offers ongoing guidance to ensure your practice is fully compliant.
- Tailored Solutions: We recognise that every practice is unique, and we develop HR strategies that align with your specific needs.
- Peace of Mind: By entrusting your HR requirements to GPS, you reduce legal risks, enhance staff satisfaction, and maintain operational stability.
For more information on how General Practice Solutions can support your practice in adapting to employment law changes, please get in touch with our HR support team, visit Our HR Services Page or Book a Free Consultation.