Top Employment Law Trends for 2025

Big changes are coming to the U.K. workplace in 2025, and if 2024 was any indication, employers have their work cut out for them. From the landmark Employment Rights Bill to the growing role of AI at work, the year ahead is packed with reforms, responsibilities, and opportunities. Here’s what you need to know to stay ahead.

2025: A Year to Prep for Change

Think of 2025 as the warm-up lap for some of the most sweeping employment law reforms in decades.

The Employment Rights Bill—published in October 2024—proposes changes across 28 areas, including unfair dismissal, flexible working, fire-and-rehire practices, and zero-hour contracts. While the bill won’t officially kick in until 2026 (and key changes like unfair dismissal reforms won’t start until autumn 2026), the time to prep is now.

Why it matters:

• Employers will spend much of 2025 reviewing the bill, adjusting policies, and training teams to ensure they’re ready when the changes land.
• Expect updates throughout the year, from amendment papers to consultation exercises, so staying on top of developments is essential.

Businesses with employees in the EU, will also need to think about the Pay Transparency Directive, set to roll out by June 2026. This directive brings strict requirements like gender-neutral pay structures and detailed pay gap reporting for larger employers (150+ employees). Many businesses are already trialing pay equity analysis to avoid costly fixes down the line.

AI at Work: Friend or Foe?