HR in 2025: Key Employment Law Changes and Workplace Trends

HR in 2025: Key Employment Law Changes and Workplace Trends

Hello 2025!

Happy New Year to you all. I have a feeling that this year is going to be a big one for all things HR.

What we know for definite so far…..

Coming 20th January:

Employers that fail to comply with the statutory code of practice on ‘fire and rehire’ could be forced to pay higher levels of compensation.

The new code gives tribunals the ability to uplift compensation by 25% if an employer unreasonably fails to follow it.

This order comes into force from 20 January 2025. After this, any employers planning large-scale redundancies will need to consider the financial risks of a potential 25% uplift to any tribunal compensation for a breach of the code, as well as their collective consultation obligation.

National Minimum Wage increases from April 2025:

The new rates that will apply from the 1st April 2025 will be as follows:

  • For workers aged 21 and over (i.e. the National Living Wage), the rate will increase to £12.21 per hour
  • For workers aged 18-20 inclusive, the rate will increase to £10.00 per hour
  • For workers aged 16-17 inclusive, the rate will increase to £7.55 per hour
  • The apprentice rate will increase to £7.55 per hour
  • The daily rate for the accommodation offset will increase to £10.66

Statutory Rate increases from 6th April 2025:

  • The weekly rate of SSP will increase to £118.75
  • The weekly rate of SMP, maternity allowance, SPP, ShPL pay and parental bereavement pay will be £187.18

and don’t forget that employers NI increases to 15% from 6th April.

As for the rest of the governments plans this year, we have no confirmed dates for other legislation changes at the moment, so watch this space….

Blue Monday falls on 20th January this year. This is the day which is said to be the most depressing day of the year. At a time when everyone in the workplace is feeling low. What better way to cheer them up than with a team event they can look

forward to, like a dress down day or charity function. Encouraging breaks, rewarding good work and praising your employees are also simple ways of easing the load on this day.

The 12 Days of Christmas

The 12 Days of Christmas

On the first day of Christmas my true love gave to me – A bonus with a bottle of brandy

Christmas Bonus

With the cost of living, it may not be possible to

give your employees a Christmas bonus this year.

If the Christmas bonus is contractual then you will need to pay it.

If the Christmas bonus is discretionary then you have a choice to pay it, however there is something called custom and practice, which means that if you have always paid a bonus, it may become an implied term of the employee’s contract of employment.

On the second day of Christmas my true love gave to me

2 Loving employees

Christmas affairs

You have had a Christmas party and there has either been a one off incident or a relationship has formed between two employees.

Having a policy on work place relationships is a way of managing any issues.

If we are talking about harassment which may have occurred at a party, then ensure you have an anti-harassment and bullying policy in place.

On the third day of Christmas my true love gave to me

3 Christmas trends

Dress Code
Lots of businesses choose to relax their dress policy at this time of year, inviting casual dress and Christmas jumpers (7thDec), which can help bring some fun into the office. However, be careful about the wording you use when notifying staff of this to ensure it is clear that casual and Christmas dress is optional. Be sensitive to employees who do not celebrate Christmas.

If casual dress worn by staff on the days between Christmas and New Year has become a problem, make sure you flag up what dress code is required ahead of time so that staff know what you are expecting.

On the fourth day of Christmas my true love gave to me

4 annual leave days

Christmas Shut Downs

Are you planning on shutting down for a short period over the festive season? hopefully you announced this earlier in the year (ideally Jan) and explained clearly to staff the number of holidays they needed to save for the Christmas closure.

If you forgot to do this, or have decided last minute that you want to close, then you can legally enforce holiday. You will need to give employees notice that is double the length of the holiday they will be taking e.g. if they are taking 3 days, you need to give them at least 6 days notice.

If, however employees have run out of holiday for the year you can’t force them to take unpaid leave or force them to bring forward holiday entitlement from the next holiday year.

Have a think in Jan 2025, what you would like to put in place for Christmas 2025 and plan ahead. Have a clear annual leave policy and communicate this to all staff.

On the subject of holidays:-

Can an employee refuse to work boxing day or New Years Day?
No, there is no legal right to time off on statutory holidays

Do you have to pay staff more for working Christmas day/ boxing day/ new years eve / new years day? No, however you need to ensure that they have the legal statutory holiday entitlement throughout the holiday year.

Can I say no to holiday requests around the Christmas period?
Yes, ensure you have a fair system for booking holiday though

As always the word is POLICY. A clear annual leave policy will ensure staff know where they stand in relation to how you want to run your business.

On the fifth day of Christmas my true love gave to me 5 longer days

Overtime

It’s your busiest season and you need employees to work overtime. Can you force them?

That depends on your contract of employment.

Don’t forget that The Working Time Regulations stipulate that employees cannot work in excess of 48 hours per week, on average, over a 17-week reference period.

Have you asked your employees to opt out of this? even with this provision, the employee has the right to change their mind and give notice to that effect.

On the sixth day of Christmas my true love gave to me 6 secret Santa’s

Secret Santa

Whilst this can be lots of fun, an inappropriate gift may leave an employee embarrassed or offended, so it is important to set some parameters around this.

Make sure you are inclusive, but be clear that participation is voluntary. Set a budget for gifts (£5 is a good idea) so there is no pressure on employees to buy expensive gifts.

On the seventh day of Christmas my true love gave to me 7 suppliers plying

Christmas Gifts 
At Christmas many suppliers or clients may send your employees gifts

Whilst we all enjoy the odd box of chocolates, it’s worth reminding staff of what is an acceptable gift.

Do you have a clear policy which has been communicated to staff?
Are small gifts (under £10) ok to keep?
Do you want all gifts to be handed in and shared between all staff members?
Do you want/need a gift register?
You could even have a raffle on Christmas eve so everyone has the opportunity to take home a gift

If you don’t have a Bribery Policy or a Gift Policy, this could be a good time to implement some.

On the eighth day of Christmas my true love gave to me 8 online shoppers

What do you do if staff are shopping online for their Christmas presents during work time?
Firstly what’s your internet policy? are they allowed personal access during working hours/ break times only/ or is personal use not permitted? ensure you make it clear to staff what your rules are.

Nobody wants to be disciplined, so a friendly but firm reminder of the rules over the festive season, where temptation to browse for bargains is high, might help to discourage these sorts of distractions before they become a serious strain on productivity.

Have a think about smart devices and mobile phones too. Ensure your policy covers all technology and when employees are permitted (if at all) to use them.

On the ninth day of Christmas my true love gave to me 9 amazon orders

Employees having parcels delivered to your premises for last minute Christmas presents?
Can we say NO?

YES, YES, YES!!

Time spent managing and opening parcels is time the employee is not working. This is fine for the odd parcel here and there, but too much will cause a big distraction. Also, since it’s illegal to open post that’s not address to you, it’s tough to stop any dangerous or illegal items from entering your company.

Again, policy is the way forward, communicate your policy to staff.

No policy = you can’t moan at employees when they do it!

On the tenth day of Christmas my true love gave to me 10 temps a temping

Seasonal staff

Ensure that seasonable staff are on the correct contract, a fixed term contract is the best with an end date to their employment. Remember temporary staff are entitled to the same pay and benefits as perm staff in a comparable role.

If you have no idea how much work you will have, hire the seasonal workers on a zero hour contract.

On the eleventh day of Christmas my true love gave to me 11 employees partying

Christmas parties

Did you know that 10% of employees have been disciplined or dismissed for an incident which occurred at the works Christmas party?

I know it’s “no fun” but it’s really important to be clear with employees about what behaviour is expected from them at a work party. Be clear that whilst you want everyone to have fun, the normal standards of professional behaviour apply and anyone who does not maintain professional behaviour may be dealt with formally.

Why important?Because as an employer, you have vicarious liability for your employees’ behaviour, even if the behaviour takes place during a Christmas Party. If one of your employees makes discriminatory or offensive comments, or even just gossips about another employee, there is the risk that you could receive a claim and be liable for their behaviour.

Have you thought about social media, can photos of the event be posted online? Some employees will not want these photos on social media.

Again, no fun I know, but is it a good idea to limit alcohol intake. I know some companies give out free drink vouchers – maybe limit this to two.

Have you been inclusive when arranging a Christmas party? to minimise the risk of any religious discrimination claim, think about an activity or event which everyone can enjoy.

Lots of staff call in sick or are late to work after a Christmas party, so maybe plan it for a Friday/weekend or think about adjusting working hours the following day to allow staff to come in later.

On the twelfth day of Christmas my true love sent to me 12 drunks a driving

Are your employee’s enjoying the run up to Christmas too much?
What if you believe your employee is turning up to work drunk?

Firstly remind employees to take it easy over the Christmas period and make it clear that drunk or hungover employees will be dealt with in line with your alcohol and drug policy.

If you do believe an employee has come into work drunk, then you must suspend and conduct an investigation. Your policy should state that if an employees attends work under the influence, it may be regarded as gross misconduct.

Key Employment Law Changes: What Employers Need to Know from October 2024

Key Employment Law Changes: What Employers Need to Know from October 2024

The 26th October saw legislation changes for Sexual Harassment.

Employers must take proactive preventative action in respect of their workers and third parties.

There is no cap on sexual harassment compensation awarded by an employment tribunal, like there is with unfair dismissal. Employees can complain to the equality authorities that you are not taking reasonable steps to prevent sexual harassment even when no allegations have been made. Enforcement action against employers includes:

  • Issuing an unlawful act notice and requiring you to put an action plan in place to prevent future breaches
  • Entering into a formal, legally binding agreement with an employer to prevent future unlawful acts
  • Asking the court for an injunction to restrain an employer from committing an unlawful act

Remember, the banter or joke defence rarely offers any mitigation in court and sexual harassment doesn’t need to be directed at a particular person, if an employee feels intimidated, degraded, humiliated or offended they can claim.

If you need a policy, risk assessment, training or any advice please let me know.

Apprenticeship News!

The government’s press release suggests that the focus for funding will be for those at the beginning of their careers and that apprenticeships for the equivalent of a master’s degree will no longer be funded by the levy.

Skills England, a body established by

the government to tackle skills shortages and support sustained economic growth, has assessed working skills across the country in its first report which was published in October. It analysed the spread of skills across regions and looked at jobs and skills in high demand. It will engage with stakeholders this autumn via round tables and webinars to test and refine its initial assessment of skills needed and also intends to consult about the types of training the growth and skills levy should fund. Watch this space…..

Equal Pay claim against Next (retailer)

An employment tribunal held that it was a breach of equal pay law for Next to pay warehouse staff a higher rate of pay than shop-floor sales staff. The tribunal was clear that cost-cutting alone could not be a legitimate aim and, even if it had been, the payment of different sums to warehouse and retail staff was not a proportionate means of achieving it.

Day one rights to unfair dismissal

The current two year qualifying period will be swept away under the Bill and the right not to be unfairly dismissed will be in place from day one of employment. The Bill allows employers to operate probationary periods during which employees can be dismissed more easily for performance after following a “lighter-touch” process. The Government has committed to consulting on the length of the statutory probation period – its preference is for a period of 9 months. In order to dismiss an employee during this period fairly the employer will have to show that the reason for the dismissal is conduct, capability, a statutory bar, or some other substantial reason “relating to the employee”

Redundancy dismissals are excluded and so unfair dismissal will be a genuine day one right in those circumstances (though the two year qualifying period for a statutory redundancy payment will remain in place).

My advice doesn’t change here, actively engage with your new employees during the probationary period and review their performance. It is vital that you have probationary paperwork in place and ensure managers are conducting reviews.

If you would like any help with probationary documentation or would like me to conduct probationary reviews on your behalf please give me a call.

The Budget

The budget on 30th October saw the following changes which will affect employment:

National Living Wage to rise in April 2025

The National Living Wage (NLW) will increase by 6.7 per cent – a pay rise for over 3 million workers.

The hourly rate for NLW workers moves from £11.44 to £12.21.

The National Minimum Wage (NMW) for 18 to 20 year-olds will also rise from £8.60 to £10.00 an hour, which is the largest increase rate (16.3 per cent) on record.

The 16-17 and apprenticeship rate will increase to £7.55 per hour.

NI

Employers National Insurance rates will increase to 15% in April 2025 and it will kick in at £5,000.

Let’s hope we see a quieter December!

Are You Prepared for the Most Significant Employment Law Changes in Decades?

Are You Prepared for the Most Significant Employment Law Changes in Decades?

The Labour government has announced 28 new changes to employment law, affecting businesses of every size across the UK. With complex updates like these, understanding and implementing them properly can feel overwhelming, and failing to comply could have serious financial and reputational consequences.

Here are some of the significant changes you should know about:

  • Day-One Rights: The traditional “2-year rule” will soon be replaced by day-one rights, which will fundamentally change how you manage new employees from the very start. This means adapting onboarding and management practices to align with these new protections.
  • Zero-Hour Contracts Banned: In a significant shift, zero-hour contracts will no longer be allowed. Employers will need to offer regular hours to employees, which may require you to re-evaluate current staffing strategies and employment contracts to meet new standards.
  • Flexible Working for All: All employees will now have the right to request flexible hours or a four-day workweek from day one. This change could impact working patterns across your organisation, requiring a fresh approach to workforce management, productivity tracking, and scheduling.
  • Enhanced Sick Pay: Employers will need to enhance sick pay benefits, ensuring employees receive higher compensation during illness. Adjusting your policies and payroll processes in light of this will be necessary to maintain compliance.

What Does This Mean for Your Business?

With these changes set to impact how businesses operate, it’s crucial that your contracts, policies, and documentation are not only updated but reviewed for legal accuracy and readiness. Beyond documentation, you’ll need to communicate these changes effectively to your workforce, whether through comprehensive training sessions, team meetings, or written updates. Preparing in advance ensures smooth transitions and minimises potential disruptions.

Get Expert Support and Peace of Mind with Our Retainer Package

We are here to support you every step of the way with our exclusive retainer package, designed to help you stay on top of regulatory changes with minimal disruption to your business. When you partner with us, you’re not only securing reliable, personalised guidance but also ensuring you’re fully prepared for the impacts of these new laws.

With our team by your side, you’ll receive:

  • Tailored advice specific to your industry and unique business needs
  • Proactive guidance on policy updates, from employment contracts to workplace practices
  • Support in rolling out necessary changes across your workforce, including communication plans and training strategies

We are committed to helping you stay compliant and confident in the face of regulatory shifts. Don’t let the complexity of these changes impact your business—reach out today to discover how our retainer package can keep you compliant, protected, and ready for the future.

Pause for Thought October 2024 Newsletter

Pause for Thought October 2024 Newsletter

As we enter into autumn season, it’s a wonderful time to focus on emotional well-being.

Autumn is a fabulous time to start to snuggle down and  create a fulfilling and balanced life, feeling as well as you possibly can be. It’s a perfect time  to reflect on how we can embrace seasonal changes while also nurturing our well-being—especially when navigating the menopause.

1. Embrace the Cosy Season

Autumn naturally invites us to slow down.   With shorter days and cooler temperatures, it’s a wonderful time to engage in restorative self-care practices. Journaling, curling up with a good book, listening to music mediation or simply taking time to unwind can ease the stresses of daily life and menopause symptoms.

2. Stay Warm, Stay Active

While it may be tempting to hibernate, maintaining physical activity is crucial for both mental and physical health during menopause. As oestrogen levels decline, many women experience bone density loss, muscle weakening, or joint pain. If you can’t manage as much exercise as you would in the warmer months make sure you walk as much as you can. This will  improve mood, support weight management, and ease menopausal symptoms.

3. Nourish Your Body with Seasonal Foods

Autumn is abundant with nutrient-rich seasonal produce that supports hormonal balance and overall wellness. Root vegetables like sweet potatoes, beets, and carrots are rich in vitamins and antioxidants, while leafy greens (such as kale and spinach) provide calcium and magnesium—key nutrients for bone health during menopause. Incorporating these foods can help alleviate hot flashes, mood swings, and other menopausal symptoms.

4. Prioritise Sleep for Hormonal Balance

The transition through menopause can affect sleep due to hormonal shifts, night sweats, and mood changes. Prioritising sleep hygiene is essential for managing energy levels, mood stability, and overall well-being during this stage of life. Create a calming bedtime routine, and avoid caffeine or heavy meals before bed.

Lisa has been recently taking Magnesium before bed which has really helped her drift off to sleep.  Adding a good quality powder magnesium to sparkling water and adding ice and  lemon is really refreshing.  It’s really improved Lisa’s sleep.

5. Mind Your Mental and Emotional Health

Autumn’s inward energy encourages reflection, and as menopause can be an emotional time for many women, it’s important to check in with yourself mentally and emotionally. Feelings of sadness, anxiety, or frustration are common, but they don’t have to be overwhelming.  Being a little bit more emotional or teary is absolutely fine.  Lisa is always telling her clients to allow the emotions to come up and out, it will not do any harm shedding a few tears here and there.  If you are really struggling, get in touch with Lisa, she is more than happy to help info@lisatighetherapyandcoaching.co.uk

6. Supplement Wisely

Nutritional support is especially important during menopause to help balance hormones and address specific symptoms. Calcium and Vitamin D are key for maintaining bone health, while B-complex vitamins can help regulate mood and energy levels. Omega-3 fatty acids also support heart health and may reduce inflammation and joint discomfort.

This month, take time to listen to your body’s needs, whether it’s rest, movement, or emotional support. Menopause can be a powerful period of growth and self-discovery, and with the right tools and mindset, you can thrive through the changes.

As employers, it’s important to recognise that the well-being of our employees is integral to the success of our businesses. Just as autumn reminds us to slow down and embrace the changing seasons, we can take this opportunity to foster an environment that supports emotional well-being, especially for employees navigating menopause. By encouraging flexible working arrangements, promoting wellness initiatives, and offering access to resources that aid in managing physical and emotional health, we can help our teams maintain balance and productivity.

Prioritising employee well-being not only builds a supportive workplace culture but also enhances overall business resilience during these seasonal and life transitions.