The UK Employment Rights Bill is set to bring profound changes to HR practices from 2025 onwards. Introduced by the Labour Party during their first 100 days in office, this legislation addresses workplace equity, employee well-being, and compliance with modern workplace demands. Our recent webinar with HR expert Amanda Chadwick offered an in-depth exploration of these developments. For those who missed it, here are the key insights and practical guidance to help you prepare your HR strategy. For convenience, you can watch back the webinar here.
Key HR Trends for 2025 and Beyond
Amanda highlighted the importance of keeping pace with emerging societal and workplace trends, as they significantly influence organisational strategies. Below are some of the most pressing HR considerations:
- Societal and Futuristic HR
Societal changes, whether they relate to global protests, political shifts, or cultural phenomena, invariably shape the workplace. Amanda stressed the concept of “futuristic HR,” where policies proactively address these influences. For instance, political debates about recruitment and regional disparities highlight the need for adaptable hiring strategies.
- Flexible and Hybrid Working Arrangements
Flexible working has become a permanent fixture in the modern workplace. HR policies must now account for varied scenarios, such as remote, hybrid, and lone working. Practical considerations include contingency plans for data security, shared workspaces, and disruptions like power outages. Amanda urged HR professionals to ensure clear agreements and robust management structures are in place.
- Mental Health and Employee Well-Being
Rising workplace stress has placed a spotlight on mental health initiatives. “Right to disconnect” policies are increasingly essential, allowing employees to disengage from work communications outside contractual hours. Amanda emphasised that these policies should form part of a broader strategy to prevent burnout and ensure a healthier work-life balance.
- The Role of Artificial Intelligence (AI)
AI continues to influence recruitment and workplace management. However, Amanda cautioned that AI tools are susceptible to human biases, which can affect decision-making. She recommended developing policies to ensure ethical AI usage, particularly in recruitment, to avoid excluding neurodiverse candidates.
- Diversity, Equity, and Inclusion (DEI)
With declining birth rates and ageing populations, workplaces must become more inclusive. Amanda discussed examples such as Hungary’s approach to incentivising higher birth rates and the UK’s push for more family-friendly workplace policies. DEI efforts will need to account for these demographic shifts, focusing on equity and opportunities for underrepresented groups.
Legal Updates and Their Implications
Amanda outlined the critical legal updates expected to take effect in 2025:
- Rolled-Up Holiday Pay
Changes introduced in 2024 for workers with irregular hours now require careful monitoring and detailed breakdowns on payslips. Employers must ensure compliance with the Working Time Regulations, which mandate that leave must still be taken, even if holiday pay is rolled up.
- Fire and Rehire Practices
From 2025, “fire and rehire” will be classified as automatic unfair dismissal unless the business can prove severe financial necessity. Employers must present evidence that alternative measures were unviable, emphasising the need for thorough documentation.
- Increases to the National Minimum Wage
The new rates for 2025 reflect significant increases, especially for younger workers. Amanda advised employers to prepare for the financial implications and consider salary benchmarking to ensure internal equity.
- Neonatal Leave and Pay
Parents of newborns requiring neonatal care will be entitled to up to 12 weeks of leave. This new right highlights the government’s focus on family-friendly policies and will require employers to update their family leave provisions.
The Employment Rights Bill: Transformative Changes Ahead
The Employment Rights Bill proposes comprehensive reforms to modernise employment law. Highlights include:
- Unfair dismissal protections and family leave entitlements from day one of employment.
- Enhanced flexible working rights, with guaranteed hours for zero-hour and low-hours contracts.
- Reforms to statutory sick pay, including first-day eligibility and the removal of the lower earnings limit.
- Strengthened trade union laws and the establishment of a Fair Work agency to ensure compliance.
These changes are designed to balance employee protections with employer flexibility, but they will also create additional administrative demands for HR teams.
Preparing Your HR Strategy
Amanda emphasised the need for HR teams to act now to prepare for these changes. Key steps include:
- Policy Audits
Review your employee handbooks, contracts, and policies to ensure they align with upcoming legislation.
- Manager Training
Equip line managers with the knowledge to implement new leave entitlements, manage flexible work requests, and oversee return-to-work interviews effectively.
- Technology Investments
Use HR technology to streamline administrative tasks and improve compliance tracking.
- Proactive Communication
Keep employees informed about policy changes to build trust and minimise resistance.
- Employee Engagement
Start the engagement process from the recruitment stage by showcasing your company culture and commitment to employee well-being. Amanda highlighted the importance of authentic communication to foster long-term loyalty.
Final Thoughts
The Employment Rights Bill is a pivotal development in UK employment law, bringing challenges and opportunities for HR professionals. As Amanda noted, staying informed and proactive is essential to ensure compliance and position your organisation as an employer of choice.
Next Steps
If you’re ready to enhance your HR expertise, consider advancing your knowledge with a CIPD qualification from Avado. These courses are designed to empower HR professionals to navigate the complexities of modern employment law. For more information, reach out to Avado’s learning advisors or visit their website.
Further webinars are also available as part of your Avado Connect membership when studying for a CIPD qualification with Avado.
