April 2025 has created a wave of significant updates to UK employment legislation, with wide-ranging implications for HR professionals and employers across all sectors. From increases in minimum wage thresholds to the expansion of employee rights and protections, these changes mark a pivotal shift in employee compliance and policy.
In our latest blog, we break down the most important developments and what they mean for your organisation — helping you stay informed, compliant, and prepared for the year ahead.
1. National Minimum and Living Wage Increases
Effective 1 April 2025, the UK government has implemented the following wage increases:
• Workers aged 21 and over: £12.21 per hour (up from £11.44)
• 18–20-year-olds: £10.00 per hour (up from £8.60)
• 16–17-year-olds: £7.55 per hour (up from £6.40)
• Apprentices: £6.40 per hour (up from £5.28)
These adjustments aim to address the rising cost of living and ensure fair compensation across age groups.
2. Statutory Sick Pay (SSP) enhancements
From 6 April 2025, SSP has increased from £116.75 to £118.75 per week. Additionally, the lower earnings threshold to qualify for SSP has risen to £125.00 per week. These changes align with broader efforts to support employees during periods of illness.
3. Family leave pay enhancements
Effective of 1 April 2025, Statutory Maternity Leave Pay, Paternity Leave Pay, Adoption Leave Pay, Parental Bereavement Pay and Shared Parental Leave Pay will be paid at a weekly rate of £187.18. The lower earnings threshold to qualify for these pay enhancements is £125.00 a week.
4. Introduction of Paid Neonatal Care Leave
Employees now have the right to paid neonatal care leave for babies born on or after 6 April 2025. This provision allows parents to take up to 12 weeks of paid leave when their newborn requires hospital care, offering crucial support during challenging times. This right will be in addition to existing family leave entitlements that parents may have.
5. Employment Rights Bill Reforms
The Employment Rights Bill, introduced in October 2024 and currently under parliamentary review, proposes several significant reforms. Once these reforms are in place they will be as follows:
• Zero-hours contracts: Ban ‘one sided’ flexibility; anyone working regular hours over a defined period will gain right to a regular contract to reflect hours worked; all workers to get reasonable notice of any change in shifts or working time and right torecompense for cancelled shifts.
• Establishment of the fair work agency: A new body with authority to enforce employment rights, including issuing underpayment notices and imposing penalties for unpaid wages, holiday pay, and SSP.
• Enhanced protections against harassment: Employers are required to take “all reasonable steps” to prevent harassment related to characteristics such as race, age, or belief, reinforcing commitments to diversity and inclusion.
• Day-one rights: Employees will have more day-one rights, including:
o Statutory sick pay – this will apply from the first day of an on-going illness and the lower earnings limit will be removed
o Unpaid parental leave
o Paid paternity leave
o Paid bereavement leave
o Unfair dismissal
(Employees are currently entitled from day-one to the national minimum wage, statutory paid holiday, protection for whistleblowers who report wrongdoing in the workplace, protection against unlawful discrimination and not to be treated less favourably if they work part time.)
• Fire and rehire: Employers will have no legal basis to dismiss employees who don’t agree to new contractual terms. However there will be an exception if the employer can demonstrate evidence of financial difficulties and that the change is unavoidable.
• Unfair dismissal: Employees will qualify for unfair dismissal protections from day-one, subject to a statutory probation period, which is likely to be six or nine months.
• Tribunal claims: The time limit for bringing a tribunal claim will be extended from three months to six months, providing employees with significantly more time and flexibility to bring an employment claim.
Keep up to date with new HR Legislation
Staying up to date with these legislative changes is essential for HR professionals, not only to maintain compliance but also to cultivate a positive, fair, and supportive workplace culture. The recent reforms are designed to enhance employee protections and encourage greater equity and transparency across all working environments.
Navigating these updates can be complex, but you don’t have to do it alone. For tailored guidance or support in implementing the new requirements within your organisation, contact the Bedrock HR team. You can contact us at [email protected] or call us on 0203 330 0827 — we’re here to help.
