Adapting to Change: How HR is Evolving This Year
January 2025
Employers with an annual leave year running from January to March will now have the option to apply rolled-up holiday pay for workers with irregular hours or part-year employees, if they choose to do so.
From 20 January onwards, a 25% increase in penalties for non-compliance with the statutory Code of Practice on Dismissal and Re-engagement will also apply to protective awards. This applies when an employer proposes to alter employee terms through dismissal and re-engagement, impacting 20 or more employees, which triggers a requirement for collective consultation. Failing to consult can lead to a protective award of up to 90 days’ pay for affected employees. If the employer disregards the Code of Practice, an employment tribunal could increase this award by up to 25%.
April 2025
New statutory minimum rates will come into effect, including:
- National Minimum Wage for 16–17-year-olds and the Apprentice Minimum Wage will both rise to £7.55
- National Minimum Wage for 18–20-year-olds will rise to £10
- National Living Wage for workers aged 21 and over will rise to £12.21
- Statutory Sick Pay will increase to £118.75 per week
- Statutory Maternity Pay and other family leave pay will rise to £187.18 per week
- The Lower Earnings Limit will rise to £125 per week
Neonatal care leave and pay are also expected to be introduced in April 2025, though the relevant regulations still need to be passed by Parliament. This will provide employees with the right to take leave when a baby in their care is receiving neonatal care in a hospital.
May 2025
While not a legal obligation, employers who are accredited to pay the Real Living Wage will need to raise their pay rates to £12.60 in the UK and £13.85 in London by 1 May, to maintain their Living Wage Foundation accreditation.
Expected changes later this year
If the Children’s Wellbeing and Schools Bill becomes law, it will introduce several changes to the employment of children, including new restrictions on working hours and a requirement for all employers to obtain a permit to hire children.