With the Labour government over eight months into their parliamentary term and the manifesto promise of upgrading employee rights firmly at the top of their priorities, a slew of new employment law bills is expected in 2025.

To help you navigate all these changes gunnercooke’s employment lawyers have put together a handy list of the biggest updates coming your way.

Neonatal Care (Leave and Pay) Act 2023

Starting April 6, 2025, parents whose babies need neonatal care will gain a new right to take up to 12 weeks of paid leave. This applies from day one of employment, and employees with more than 26 weeks of service will receive statutory pay under certain conditions.

Key reforms include:

• The leave applies to children born on or after April 6, 2025, who are admitted to neonatal care within 28 days of birth and stay for more than seven days.
• Employees can take leave while the baby is still in care or after other family leave has been used.
• The right to statutory pay will depend on meeting the lower earnings limit (£125/week from April 2025).

Chloë Leyland, Employment Partner, comments:

“Employers are well advised to create a comprehensive policy to reflect these rights, providing clear instructions on how staff can request this leave. Employers may wish to consider offering an enhanced version of this benefit to be more competitive within the market.”

eVisa rollout

The transition to digital work visas is happening fast! From January 2025, all workers will need an eVisa as proof of their eligibility to work in the UK. This includes biometric residence cards (BRCs) and vignette stickers.

• Employees must create a UKVI account to access their eVisa.
• As of January 1, 2025, everyone must be registered to access their work status digitally.
• Employers will need to stay on top of the “View and Prove” service to verify right to work status and avoid penalties.
• Moving away from physical documents requires employers to implement systems for verifying right to work and maintaining compliance, especially with the expiration dates of eVisas.

Anivaldo Esquelino, Global Mobility and Immigration Partner, added:

“Whilst these changes have already been put in place, the government have announced that there will be continuous updates throughout the year to this system, so it’s vital that you keep up to date with any further legislation.”  

Day one unfair dismissal rights

The Employment Rights Bill will eliminate the two-year service requirement for unfair dismissal claims, meaning employees will be protected from day one of their employment.

But what does this mean for employers?

• Every dismissal must be “fair,” or you risk facing an expensive and time-consuming tribunal case.
• Employers will need to be meticulous about following policies and procedures for dismissals, no more spontaneous terminations.
• This new protection means employers will need to act carefully when managing employee relations to avoid unnecessary legal risk.

Carl Atkinson, Employment Partner, said:

"This is a game-changing update for everyone, making it more difficult to dismiss someone. For the dismissal to be considered “fair”, you need to follow your company's disciplinary procedure and to keep a written record of all correspondence.”

Zero-Hour Contracts & Guaranteed Hours

The government has committed to addressing zero-hour contracts, but they’re not banning them outright. Instead, they’re introducing a new requirement to offer guaranteed hours to qualifying workers.

Ed Jenneson, Employment Partner, added:

“This change is more complicated than an out-right ban, so employers must ensure they are offering guaranteed hours based on what ‘workers’ have worked during a "reference period” and highlight that whilst workers can reject the offer, it provides greater stability than the current uncertainty of zero-hour contracts. There is to be further consultation with businesses, so changes may occur before implementation.”

Statutory Sick Pay (SSP)

The Employment Rights Bill is also proposing changes to Statutory Sick Pay (SSP), making it more accessible to employees who are unwell.

Joan Pettingill, Employment Partner, explains:

“The Lower Earnings Limit (LEL) will be removed, allowing more employees to qualify for SSP, even those earning below the current threshold of £123/week, and this will be available from day one of sickness, rather than only after four consecutive days of illness. It’s important that employers are aware of the additional costs (estimated £400m) as more employees will be eligible for SSP.”

You can find out more about the gunnercooke Employment Team and the support they can offer to clients on our website: https://gunnercooke.com/practice-area/meet-the-employment-team/