It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Angela Gorton, Head of Department, Employment at Lupton Fawcett.
2025 looks set to bring many changes for employers.
The government is seeking to narrow the age-based pay gap by increasing the national minimum wage for 18–20-year olds to gradually align with rates for those aged 21+. Combined with the rise in employer’s national insurance, this will increase labour costs and may affect recruitment.
Employers face greater liabilities for failing to prevent workplace sexual harassment. Tribunal claims in 2025 may result in compensation uplifts of 25%, with mid-range injury to feelings awards reaching up to £44,000. Employers without policies, risk assessments, and staff training must act early in 2025 to protect themselves.
The Employment Bill, hailed as “the biggest upgrade to worker rights for a generation,” will bring significant changes. Unfair dismissal will become a day 1 right, and zero/low-hour workers will be able to request guaranteed hours based on regular work patterns. Compensation will apply for short-notice shift cancellations. Fire-and-rehire practices are to be curtailed, by increasing compensation for failing to follow the Code of Practice and eventual outlawing except when business survival is at risk.
Statutory sick pay will be payable immediately, with no waiting days causing concern as to whether short term absence levels may increase. Unions will gain greater access to workplaces for recruitment and recognition, with employers required to notify staff of union rights at the time they join the business and at certain points thereafter.
With numerous changes to employment law planned, employers must act quickly to prepare.
