April 2025 brought significant changes to employment law. For business owners, employers, and employees alike, staying updated on these changes is essential for ensuring compliance and fostering a fair workplace culture.
Overview of Upcoming Changes in Employment Law
Starting in April 2025, multiple significant changes are set to impact employment laws.
The Government has recently announced a series of significant amendments to the Employment Rights Bill. This aims to strengthen worker protections and ensure fairer employment practices. These changes, which are set to be considered at the House of Commons report stage, reflect feedback from consultations on zero-hours contracts, agency worker rights, trade union legislation, statutory sick pay, and the regulation of umbrella companies.
Key Changes and What They Mean For You
Greater Job Security for Agency Workers
A major development is the introduction of a right for agency workers to be offered guaranteed hours by the end user of their services. This move is designed to tackle uncertainty and one-sided flexibility in agency work. The responsibility for offering guaranteed hours will primarily fall on the end user. However, in some cases, it may also be assigned to agencies or other relevant bodies through secondary legislation.
Agency workers will also receive stronger protections surrounding shift scheduling. Both the end user and the agency must provide reasonable notice for shifts, cancellations, and any changes. Agencies will be required to compensate workers for short-notice cancellations. They may, however, recover these costs from the hiring company.
These provisions will apply to both new and existing contracts. Transitional arrangements will also be in place for pre-existing agreements.
Stronger Protections for Employees in Redundancy Situations
To improve redundancy protections, the Government has proposed to increase the maximum protective award. This award for failures in conducting collective redundancy consultations will rise from 90 to 180 days. This change strengthens employee rights and holds employers to higher standards in redundancy processes.
Furthermore, the Government is committed to reviewing the collective redundancy framework. This includes updating the Code of Practice on Dismissal and Re-engagement. New protections, such as the right to claim automatic unfair dismissal in ‘fire and rehire’ scenarios, will be effectively integrated into employment law.
Reforms to Trade Union and Industrial Relations Law
To modernise trade union and industrial relations law, several amendments have been proposed. These include:
Strengthening protections against unfair practices during trade union recognition processes.
Removing the requirement for trade unions to ballot members on maintaining a political fund every ten years.
Simplifying the information required in industrial action ballots and notices. There will be further consultation on e-balloting.
Extending the validity of a trade union’s mandate for industrial action from six to twelve months. This reduces the need for repeated ballots.
Granting trade unions digital access to workplaces for collective bargaining, in addition to existing physical access rights.
Expanding Access to Statutory Sick Pay (SSP)
Under the proposed changes, all employees will become eligible for statutory sick pay (SSP). The lower earnings limit will be removed. However, to balance affordability for businesses, lower earners will receive either 80% of their average weekly earnings or the statutory SSP rate, whichever is lower. This ensures that more workers have access to financial support when unwell while maintaining sustainability for employers.
Regulation of Umbrella Companies
The Government has also taken steps to regulate the umbrella company market. This is in response to long-standing concerns about worker exploitation and non-compliance. A new legal framework will be introduced to ensure that workers employed through umbrella companies have the same rights and protections as those directly employed by an agency or business. Further consultations will refine the regulatory approach, focusing on improving transparency and accountability in pay arrangements.
Implications for Employers and Employees
These amendments signify a vital shift towards a fairer and more balanced employment landscape. For businesses, these changes bring new obligations. Employers will need to review their contracts, redundancy policies, and engagement with agency workers and umbrella companies carefully. For employees, stronger protections and increased job security are welcome developments.
Navigating the New Landscape
To navigate these changes effectively, businesses should proactively seek legal advice. Understanding the implications of these new regulations is crucial for compliance and maintaining a positive workplace.
Call a Specialist Employment Lawyer
Magara Law is an employment law firm with offices in Bicester, Banbury, Reading, and Paddington, London, serving clients nationwide.
For more information or to contact our employment law team at Magara Law, call 01869 325 883 or email roy@magaralaw.co.uk.
