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Employment Law Updates: Key Changes for 2025–2027 and What Employers Should Do Now

  • Matilda Swanson
  • 1 day ago
  • 3 min read
Motivated woman on pier at sunset

Employment law in the UK is evolving rapidly.


Between now and 2027, a series of confirmed and proposed changes will reshape how organisations manage pay, leave, industrial relations, and workplace rights.


Many of these reforms aim to strengthen employee protections and introduce earlier eligibility for key benefits — meaning HR teams and leaders need to start preparing now.


We have summarised the most significant developments and outlined practical steps to help values-led employers stay compliant, fair, and future-ready.


Recent Updates: April 2025


A number of key changes are already confirmed from April 2025, including:

  • Increases to statutory rates – national minimum wage, statutory sick pay, statutory family pay, and the lower earnings limit.

  • Revised redundancy calculations – the statutory cap will increase.

  • Employer NIC changes – updated rates and thresholds.

  • Neonatal Care (Leave and Pay) Act 2023 – introduces up to 12 weeks’ paid leave for eligible parents whose baby is admitted to neonatal care.

  • Statutory Code on “fire and rehire” – now legally enforceable (effective January 2025), addressing poor dismissal and re-engagement practices.


Autumn 2025: Anticipated Reforms (Subject to Royal Assent)


Enhanced union and industrial relations rights, including:

  • Dismissal for taking part in lawful industrial action becoming automatically unfair.

  • Shorter notice periods for industrial action (10 days).

  • Simplified voting procedures and extended mandates (12 months instead of 6).

  • Streamlined rules for union ballots and political funds.


April 2026 (Subject to Consultation)


  • Day-one rights for paternity and ordinary parental leave.

  • Whistleblowing protection to include sexual harassment disclosures.

  • Statutory sick pay from day one with the lower earnings limit removed.


October 2026 (Subject to Consultation)


  • Stronger anti-harassment duties, requiring employers to take “all reasonable steps” to prevent harassment.

  • Automatic unfair dismissal for “fire and rehire” on worse terms.

  • NDAs limited – clauses preventing disclosure of harassment or discrimination to become void.

  • Tipping law updates (details pending).

  • Employment tribunal claim time limits extended from 3 to 6 months.


Looking Ahead to Employment Law Changes in 2027


Proposals currently under consultation include:

  • Day-one rights for unfair dismissal and other key protections.

  • Guaranteed hours and compensation for cancelled shifts for zero-hours and agency workers.

  • Additional flexible working measures for employers, including clearer duties around refusal and communication.

  • Pregnancy loss bereavement leave and enhanced protection for pregnant workers.

  • Collective redundancy changes – requiring employers to consider redundancies across the entire organisation, not just individual sites.


What Employers Should Do Now


With so many changes on the horizon, now is the time to act.

  • Review HR systems and payroll to ensure new statutory rates and NIC thresholds are updated from April 2025.

  • Update contracts and policies for upcoming entitlements, including neonatal care leave, day-one rights, and anti-harassment obligations.

  • Train managers and teams on the new statutory codes of practice, whistleblowing protections, and harassment prevention duties.

  • Plan for cost and workforce impacts – especially around day-one sick pay, extended family leave, and guaranteed hours.

  • Communicate proactively with staff to build trust and reduce confusion about new rights and entitlements.

  • Model best practice by introducing progressive policies early – for example, enhanced family leave or flexible working options.

  • Assess the use of casual or agency labour, and start preparing for potential guaranteed-hours requirements.


Final Thoughts


With significant reforms approaching, HR leaders and charity employers should take a proactive approach now. Reviewing contracts, policies, and workforce planning early will reduce risk and help ensure compliance as new laws take effect.


By acting ahead of the curve, values-led organisations can not only stay legally compliant but also strengthen trust, fairness, and inclusion across their workplaces.

 

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