Employment law has been significantly overhauled in recent years, bringing clearer expectations for employers — and stronger protections for employees. For most businesses, the intention is simple: do right by their people, run a fair workplace, and stay compliant.
But with so many reforms coming in thick and fast, it can be difficult to keep track of what’s already in force, what’s changing next, and what actions employers need to take to avoid risk.
Here, Katie Ash, Head of Employment Law at Banner Jones, shares a practical overview of the key changes introduced in 2025 that employers should now be embedding — and what’s still to come this year.
“Employment law has been overhauled in recent years, and that’s created clearer expectations for employers and greater protection for employees,” says Katie.
“For the most part, businesses want to do the right thing — but when the rules keep changing, it can be hard to know what needs updating and when. The smart move is to get ahead of the game: review your policies, train your managers, and build compliance into day-to-day working practices before issues arise.”
What Employment Law changes happened in 2025?
- Neonatal Care Leave
From 6 April 2025, eligible employees became entitled to one week of leave—paid at statutory rates—for each week their newborn is in neonatal care, up to a maximum of 12 weeks. This is in addition to other leave entitlement, such as maternity leave.
- ACAS Early Conciliation Extension
From 1 December 2025, the early conciliation window before employment tribunal claims can be commenced doubled from 6 to 12 weeks. This extends the pause on the limitation period for bringing a claim, meaning disputes may linger for at least nine months before proceeding.
“These changes are already in place. If you weren’t aware, don’t panic — but don’t ignore them either,” says Katie. “The key is to make sure you and your managers understand the changes so that in the event that you find yourself facing a claim, you know what the process is.”
What’s Coming in 2026
April 2026
- Statutory Sick Pay, Paternity Leave & Parental Leave
- Statutory Sick Pay (SSP) becomes payable from day one, removing both the lower earnings limit and the three-day waiting period; SSP also increases to £123.25 per week.
- New day-one rights introduced for paternity leave and unpaid parental leave.
- Collective Redundancy
- Protective awards for failing to consult properly will double to 180 days’ pay (up from 90 days).
- Fair Work Agency
- A new enforcement body will launch to oversee SSP, minimum wage, holiday pay, zero-hours misuse, and more.
- Trade Union Reforms & Industrial Action
- Electronic balloting introduced.
- Salary & Pay Updates
- National Living Wage increases to £12.71/hour for over 21’s; SSP and statutory rates also rise.
“These changes aren’t just technical updates — they’ll affect day-to-day decisions around absence, leave, pay, restructures and employee relations,” says Katie. “Employers who start preparing now will be in the best position to stay compliant and avoid costly mistakes later in the year.”
Other Developments: October 2026 Onwards
- Unfair Dismissal Reforms
-
- Reducing he qualifying service needed to pursue a claim for unfair dismissal from 2 years to 6 months and removing the cap on compensatory awards
- Fire-and-Rehire Restrictions
- Dismissals for refusing restricted contractual changes (like pay, hours, pensions) will be automatically unfair unless an employer can justify them.
- Sexual Harassment Protections
- New duty to take “all reasonable steps” to prevent sexual harassment to be introduced.
- Third Party Harassment Protections
- Reintroduction of employer liability for third party harassment in relation to all protected characteristics.
- Tribunal Time Limits Extended
- Time limits to bring tribunal claims extended from three to six months.
- Further Industrial Action Changes
- Collective redundancy threshold to be changed, additional reforms around right to a statement of trade union rights, facilities for, and time off for, trade union representatives and protected status for participants.
The post Employment Law Changes for Employers: Key Updates in 2025 — and What’s Coming in 2026 first appeared on HR News.