Employment Law changes in 2025

The landscape of UK employment law has undergone significant transformation in 2025, building on a series of legislative changes first introduced in 2024. For organisations, the pace and scope of these changes present challenges and opportunities. Employers and HR professionals must remain vigilant, ensuring that policies, contracts and workplace practices are not only up to date but also fully compliant with the latest statutory requirements. Failure to adapt can result in legal risk, reputational harm and missed opportunities to foster a positive and inclusive working environment.

This article provides an overview of the key employment law changes in 2025, highlights the practical implications for business and provides guidance on navigating the upcoming developments.

Duty to prevent sexual harassment in the workplace

The Worker Protection (Amendment of Equality Act 2010) Act 2023 came into force on 26 October 2024, creating a new proactive duty for employers to protect employees against sexual harassment in the workplace. Employers are now required by law to take “reasonable steps” to prevent workplace harassment.

While the Act does not define what constitutes “reasonable steps,” guidance from the Equality and Human Rights Commission suggests that practical measures may include conducting risk assessments, providing staff training, updating policies, and fostering cultural change. These steps should be proportionate, practical, and tailored to the size and circumstances of each organisation.

A claim for failing to take reasonable steps to prevent sexual harassment cannot be brought against an employer independently; it must be linked to an individual claim of sexual harassment. However, where a claim for sexual harassment is successful and the employer is found to have breached the new duty, employment tribunals now have the power to increase the compensation awarded to the employee by up to 25%. Given that compensation for sexual harassment is uncapped, this uplift can be substantial. The 25% uplift applies specifically to harassment of a sexual nature and does not extend to other protected characteristics or harassment based on sex.

Employers and HR teams need to keep an eye on further changes planned by the government in the Employment Rights Bill (discussed below). This proposes strengthening the new proactive duty from “reasonable steps” to “all reasonable steps” to prevent sexual harassment in the course of employment. The Bill also plans to extend protection to include harassment by third parties and introduce enhanced whistleblowing rights. Individuals who report sexual harassment will be protected from detriment and dismissal, and such disclosures will be excluded from confidentiality provisions in employment contracts, settlement agreements, and non-disclosure agreements, ensuring these reports are treated as protected disclosures.

Woman Definition: Legal Clarification

In April 2025, the Supreme Court delivered its judgment in the case of For Women Scotland Ltd v Scottish Ministers, clarifying the definitions of “woman”, “man”, and “sex” in the Equality Act 2010 are to be interpreted as referring to biological sex.

This ruling has significant consequences for the management of single-sex facilities in the workplace, requiring employers to carefully assess and establish workplace policies that balance their legal responsibilities with the specific needs and context of their organisation. In light of this decision, employers are encouraged to consider implementing a gender identity policy that addresses the use of single-sex facilities in the workplace and outlines support for transgender staff who transition at work. Furthermore, it is advisable for employers to offer training to managers and employees and guide effective communication regarding these matters.

Neonatal Care leave and pay

From 6 April 2025, employees are entitled to statutory leave and pay if their baby requires specialist neonatal care after birth. The Neonatal Care (Leave and Pay) Act 2023 empowers the Secretary of State to introduce regulations granting employees the right to statutory neonatal care leave (NCL), in addition to any other family leave they may be eligible for, and statutory neonatal care pay (SNCP), subject to meeting the relevant criteria.

Employees are entitled to one week of NCL for each qualifying week their child spends in neonatal care, up to 12 weeks. Leave must be taken in weekly blocks within 28 days of birth and is available to those with a qualifying parental or personal relationship, including adoptive and surrogacy cases. NCL is a day-one right and can be taken alongside other statutory family leave within the first 68 weeks after birth. Notice requirements vary depending on the timing and duration of leave, but employees are protected from detriment or dismissal related to NCL and have priority for suitable alternative employment in redundancy situations.

To qualify for SNCP, employees must meet minimum service and earnings criteria. Pay is at the same rate as statutory paternity or shared parental pay, for up to 12 weeks, and must be claimed within 68 weeks of birth.

These changes require organisations to update their policies and ensure appropriate support for affected employees.

Employment Rights Bill

The Employment Rights Bill 2024-2025 introduced in October 2024, brings wide-ranging changes to UK employment law. It covers areas such as unfair dismissal, fire and rehire, collective redundancies, zero and low hours contracts, trade unions, industrial action, sexual and third-party harassment, non-disclosure agreements, statutory sick pay, flexible working and family leave. The Bill also establishes the Fair Work Agency and new collective bargaining bodies for school support staff and adult social care workers.

The Bill is expected to become law before the end of this year, but many of the provisions will not take effect immediately. There will be a phased implementation through to early 2027 and regulations will be created containing much of the detail of the new rights. The timeline for changes includes:

• Imminent: Repeal of minimum service level rules for strikes and enhanced protection for industrial action.
• April 2026: “Day one” rights for paternity and parental leave, launch of the Fair Worker Agency, changes to sick pay, new rules for collective redundancy, gender pay gap and menopause action plans and enhanced whistleblowing protection for sexual harassment.
• October 2026: Employers must prevent harassment from third parties and take “all reasonable steps” to prevent sexual harassment in the workplace, fairer tip allocation, time limits for all employment tribunal claims increasing to 6 months, restrictions on “fire and rehire” and more protection for those involved in industrial action.
• Early 2027: Enhanced dismissal protections for pregnant women and new mothers, “day one” unfair dismissal rights and bereavement leave rights, reforms to zero-hours contracts and new requirements for flexible working requests and triggers for collective redundancy consultation.

Summary of practical steps for your organisation

The key practical steps for employers are as follows:

• Review and update policies – particularly policies relating to harassment, family leave, and flexible working. Prepare for anticipated changes by updating policies covering enhanced whistleblowing protection and the new requirement for collective redundancy.
• Conduct risk assessments – assess workplace risks related to sexual harassment and discrimination. Identify gaps in current practices and areas needing improvement.
• Staff training – provide targeted training for managers and employees on new legal duties, especially the proactive duty to prevent sexual harassment and the clarified definition of “woman” and “sex” under the Equality Act.
• Support for employees – update procedures to support employees eligible for neonatal care leave and pay.
• Prepare for phased implementation – track the timeline for upcoming changes under the Employment Rights Bill and carry out an audit of where changes will impact business. Plan gradual policy updates and staff briefings as new regulations come into force.

How Geldards can support your organisation

Geldards’ employment team provides expert guidance to help organisations navigate changes in employment law, including upcoming updates on the Employment Rights Bill. We work closely with HR and leadership to manage legal risks, develop effective strategies, and deliver practical training.

By partnering with Geldards, your organisation benefits from a responsive and approachable team dedicated to providing tailored advice that aligns with your specific needs and operational objectives. Our focus is on delivering practical, solution-oriented guidance and support to help anticipate, prevent, manage, and resolve workplace challenges.

For support, contact our Employment Team. We are here to help.