Further to our 2024 update we now look ahead to the changes on the horizon in employment law for 2025.
January
Fire and Rehire
Sometimes employers need to vary employee’s terms and conditions of their employment contracts. One method of doing this was to dismiss and offer to re-engage employees under the new terms. From 20 January 2025 the Employment Tribunal will have the power to uplift (or reduce) any protective award by 25% for a failure by the employer to comply with the Dismissal and re-engagement: code of practice
April
As usual there are several increases to various payments.
National Minimum Wage
- National Living Wage (over 21s) rises from £11.44 to £12.21
- National Minimum Wage (18-20 years) increases from £8.60 to £10.00
- National Minimum Wage (16-17 years and apprentices) rises from £6.40 to £7.55
Statutory Sick Pay
- Statutory Sick Pay increases to £118.75 per week
Child related payments (maternity, paternity, adoption & parental bereavement)
- Will increase from £116.75 to £118.75
National Insurance
Employer National Insurance contributions will rise from 13.8% to 15%.
The threshold for liability to pay the Secondary Class 1 NICs will be reduced from £9,100 to £5,000 per annum.
Other changes expected in 2025
Neonatal Care
It is expected that the Neonatal Care (Leave and Pay) Act 2023 will come in force in April. The intention of this Act is to firstly give employees time off when a baby requires hospital neonatal care, and secondly a right to payment. The sum is likely to be the same as the child related payments as above.
Paternity Leave
The Paternity Leave (Bereavement) Act 2024 is also expected to come into force in April 2025. This will grant fathers and partners of the mother access to paternity leave if the mother (or adoptive mother) dies shortly after the child’s birth or adoption placement. This is likely to be a day one right and operate in a similar manner to maternity leave.
The Employment Rights Bill 2024
This Bill is currently working its way through Parliament and whilst it may receive the Royal Assent during 2025, it is likely that most provisions will not apply until 2026 so please revisit our site for further updates. However, going forwards it would be sensible for employers to begin to review their employment contracts, handbooks and policies and consider the changes that are likely to occur in the near future. Check out our brief update of the employment rights bill 2024 for the key points.
This article is intended as a brief guidance and no reliance should be placed on its content or taken as legal advice. If you or your business require legal advice, please contact us on 01483 303636 or info@justemployment.com to discuss how we can help you.
