Employment law changes over the next 18 months that you can't afford to ignore. Keeley Baigent of KSAB Law tells us more
Running a business can feel like navigating a constantly shifting maze, and with new employment law changes coming over the next 12 to 18 months, that maze just became more complex. Missing or failing to plan for these changes could expose your business to legal risks, additional costs, and unnecessary stress. The Employment Rights Bill, published last October, is at the forefront of the changes. This blog outlines some of the key updates you need to prepare for and provides practical steps to stay ahead. Neonatal leave and pay: In April 2025 the new right to neonatal leave and pay will come into force for parents of babies requiring neonatal care. The leave will be for 12 weeks and must be taken within 68 weeks of birth. What action you need to take: update Policies to include details of this new leave and pay. Paternity leave and unpaid parental leave: Over the next 12 months, paternity leave and unpaid parental leave will become a day-one right for eligible employees. At the present time there is a qualifying period for these rights. What action you need to take: update Policies to include details of this new leave and pay. Extended protection for post pregnant employees: There will also be extended protection for employees for a six months’ period following their return to work after they have been pregnant. The new law will ensure that it will be unlawful to dismiss employees who have been pregnant within six months of their return to work, except in specific circumstances as defined in Regulations to be published Failing to comply with this change could result in claims of sex discrimination and unfair dismissal. What action you should take: Review maternity policies to include the extended protection and ensure that all managers are aware of the extended right. Right to be paid SSP from the first sick day: The new right to be paid SSP from the first sick day will come into force which will differ from the present situation where SSP is paid from the fourth day. The new law will also remove the requirement for the worker's earnings to be not less than the lower earnings limit to be eligible for SSP. Consultation closed on 4 December 2024 seeking views on what the percentage of average weekly earnings should be for the purposes of calculating the rate of SSP for some low-earning workers. For those employers who do not pay staff during the first 3 waiting days of sickness absence this will be an additional cost for them. Action to take: Put plans into place to deal with the extra costs (if applicable) and ensure compliance when the new law comes into force. Right to Switch Off There will be a consultation on a new statutory Code of Practice for the right to switch off. This will be a right to disconnect from work outside of working hours and not to be contacted by the employer. Action to take: keep an eye out as to when this comes into force and train managers on the right in order to prevent unwanted contact outside of working hours in order to avoid claims. Paternity Bereavement Leave: Another change is the removal of the usual 26-week minimum service requirement for fathers and partners to take paternity leave where the mother of the child (or the adoptive parent or intended parent in a surrogacy arrangement) dies shortly after the child’s birth. This will make paternity leave a “day one” right for bereaved partners. Action to take: Update your paternity leave policy. Removal of hire and fire practices: There will be a restriction on the ability to use dismissal and re-engagement as a lawful means of changing an employee's contractual terms, save where there is genuinely no alternative, due to financial difficulties which threaten the employer's ability to carry on business as a going concern. Action to take: Be cautious when needing to change an employee’s contractual terms and take legal advice when doing so. Offer of a guaranteed hours contract: The new law will also introduce a duty on you to offer a guaranteed hours contract that reflects the hours qualifying workers regularly work over a reference period (suggested 12 weeks). There will also be a duty on employers to provide reasonable notice of shifts, with workers being entitled to compensation if their shift is cancelled, moved or curtailed at short notice. On 2 December 2024 consultation closed which explored who should be responsible for offering guaranteed hours to eligible workers: the agency or the hirer. The proposed changes in respect of agency workers and zero hours staff will need to be prepared for as they will significantly reduce the flexibility that currently applies to these types of workers. Preparing for Change The next 12 to 18 months will bring challenges and there will be more to come as further provisions of the Employment Rights Bill come into effect including the removal of the qualifying period of two years in order to bring a claim unfair dismissal which is expected in October 2026. By keeping on top of when the new rights will apply and preparing for these you can avoid legal pitfalls, boost employee satisfaction, and enhance your reputation.
