Now that April 2025 is upon us, UK employers need to prepare for significant changes in employment law that will impact workforce management, contracts, and compliance. Staying informed and making proactive adjustments will ensure your business remains compliant while safeguarding your organisation from potential legal risks. Below is a summary of the most important updates and how they may affect your business.

 

  • Increase in National Minimum Wage (NMW)

The National Minimum Wage is set to rise again in April 2025. While the exact figures will be confirmed closer to the date, businesses should plan for an increase to meet the rising cost of living and inflation. Employers should conduct a salary audit to ensure compliance and budget accordingly for these changes.

 

  • Right to Request Flexible Working from Day One 

From April 2025, employees will have the legal right to request flexible working arrangements from the first day of employment, rather than after 26 weeks. This change highlights the growing importance of hybrid and remote working models, and employers will need to review policies, update employment contracts, and establish processes to manage flexible working requests efficiently.

 

  • Changes to Holiday Pay Calculations

 New guidelines on calculating holiday pay for irregular hours and part-time workers will be introduced, ensuring fair and consistent compensation. Businesses with large contractor or part-time teams must carefully review their holiday pay policies and ensure compliance with these updated regulations.

 

  • New Regulations on AI and Data Protection in Recruitment

With the rise of AI-driven hiring practices, new data protection guidelines will come into force to regulate how candidate data is processed and stored. Employers using AI in their recruitment processes will need to update their privacy policies and ensure compliance with GDPR regulations.

 

  • Enhanced Protections for Pregnant Employees and New Parents

Strengthened protections for pregnant employees and new parents are also on the horizon. The changes aim to reduce discrimination and ensure smoother transitions for employees returning to work after parental leave. Employers should review their maternity, paternity, and shared parental leave policies to stay compliant.

 

How These Changes Affect Your Workforce Strategy

With these updates taking effect in April 2025, employers need to review existing employment contracts, assess flexible working policies, and ensure compliance with new pay regulations. A proactive approach now can prevent costly legal complications in the future.

 

Maxwell Bond Can Help You Navigate These Changes

Adapting to evolving employment laws can be complex, but you don’t have to do it alone. Maxwell Bond’s expert recruitment consultants can help you hire the right talent, adjust your contract and permanent hiring strategies, and ensure compliance with these new regulations.

Contact us today to discuss your hiring needs and ensure your workforce is ready to thrive in 2025!