Preparing for generational rights’ upgrades

Employment laws are undergoing a massive overhaul. A new UK Government roadmap suggests that some of the new laws will come into operation in October 2026, while others will not take effect until 2027.

Think ahead

Although the exact and finer details of many proposed changes, such as the day-one right to not be unfairly dismissed, enhanced flexible working rights, a ban on hire and rehire practices and employer liability for harassment by third parties, are not yet known, employers should prepare. Getting systems in place now to safeguard the business against falling foul of new regulations makes sense. Working well in advance with an adviser, who can guide policies and practices and establish good working procedures, may be well worth it.

For now, however, it is essential to ensure compliance with changes already introduced. The April 2025 period saw the arrival of various new arrangements of which employers must be aware. One headline-maker has been the increase in both the National Minimum Wage (NMW) and National Living Wage (NLW). Anyone aged 21 and over should now be paid at least £12.21 per hour, and those aged 18-20 should earn £10 per hour. For under-18s and apprentices, it is £7.55 per hour.

Double-check your payroll and ensure you are paying these new rates; otherwise, penalties could be levied. You could also face reputational damage if such a situation became public.

The same diligence should be paid to Statutory Sick Pay (SSP) and statutory payments for maternity, paternity, adoption, shared parental and parental bereavement pay. SSP is now to be paid at a weekly rate of £118.75 (as from April 6, 2025) and other statutory pay at a rate of £187.18 per week. Make sure any employee-facing documents reflect these rates and update payroll systems.

New employee legislation

There are now also statutory leave and pay entitlements for parents of babies born prematurely or receiving extended care in neonatal units. The Neonatal Care (Leave and Pay) Act 2023, effective as of April 6, 2025, could have escaped attention. With so many employment-related regulations and payment changes in such a short space of time, it is easy to have missed some of the newer employer obligations.

Parents with a baby admitted to neonatal care could be eligible for up to 12 weeks of leave, typically added to the end of maternity or paternity leave.

Another under-the-radar regulation arrived on January 20, 2025. Failing to comply with the statutory ACAS Code of Practice on Dismissal and Re-engagement can now result in a 25% uplift in a protective award for workers whose employment terms have been changed during the process.

Employer action

All of this undoubtedly has both financial and administrative implications for employers. Employee handbooks and company policies need to be brought up to date. New procedures may need to be embedded in the workplace, involving staff and managerial training. Understanding what is now compliant practice is fundamental.

Putting the foundations in place for what is likely to come when the Employment Rights Bill becomes law is a sensible move, allowing a business to better cope with an even greater raft of regulations with which to comply in the near future.

Remember that employment law is a major risk, requiring mitigation through robust compliance. Legal cases can result in significant defence costs, even if your company is not at fault. Protect against these through better HR and operational systems, but also the insurance covers that enable a defence to be mounted, by picking up costs, but also providing advice. Talk to us today about the options available to you.