The Changes in Employment Law and What Your HR Team Need to Know

Sam Pawson, Head of the Employment Law team at Chadwick Lawrence gives his views on how HR is continuing to develop in the modern workplace and his thoughts on the changes following the October 2024 Employment Rights Bill.

We have seen how these changes are influencing workplaces, and we wanted to explore the challenges and opportunities that professionals will encounter.

What are the common challenges for HR in 2025?

We have seen a real shift in recent years. Conversations around disability, self-identity and mental health are much more open. This brings an increase in cases relating to neurodiversity and menopause, among other topical issues.

We’re also dealing with the challenges relating to legislative changes brought in by a new government designed to address the cost of living.

Businesses may be required to respond to an increasing focus on workers’ rights, including flexible working from day one of employment, the right to disconnect, improvements in statutory sick pay, and evolving parental leave policies.

How employment law impacts HR the most in 2025?

Most significant changes to employment law are unlikely to take full effect until Autumn 2026, but 2025 is still going to be a critical year for HR. The National Minimum Wage will raise, taking effect in April 2025, becoming aligned with a ‘true living wage’. The elimination of age bands for the NMW will mean a single rate for all workers.

Plans to strengthen the ban on unpaid internships could impact recruitment practices and secure electronic balloting for union elections may necessitate HR departments to adapt their procedures.

In 2025, we’ll see the impact of the Worker Protection Act 2023, obliging employers to prevent sexual harassment in the workplace.

Employer guidelines to address workplace health issues need to be created across workplaces and will necessitate training and policy updates to support employees. The implementation of a statutory code of practice regarding the right to disconnect from work communications could impact work hours and out-of-hours contact.

What advice would you give to help them navigate these changes?

Whilst much of the reporting of the amendments to the Employment Rights Bill has resulted in concern for employers, employers should not panic. One of the more significant proposals, the ‘Right to Disconnect’, has been omitted, and the key amendments are to SSP, trade unions, and agency workers.

The Bill has not yet received assent, and the majority of its content will not come into force until at least Autumn 2026. This gives employers ample time to review their Handbooks and policies, to out new policies and procedures in place and to make strategic decisions about their workforce planning.

Have you got an issue that our employment team can help you with? Get in contact with us to see how we can help.