The Employment Rights Act of 2025 is set to bring about significant changes that will impact businesses and employees alike. As a small business owner in the UK, it’s crucial to stay informed about these changes and understand how they will affect your operations and workforce. In this article, we’ll take a closer look at the upcoming changes and what you need to do to prepare.
Firstly, it’s important to note that the Employment Rights Act 2025 aims to enhance the rights and protection of employees in the workplace. It is a result of extensive consultations with various stakeholders, including employers, employees, and unions, to address the evolving needs of the modern workforce. The act is set to come into force in phases, with the first set of changes taking place from April 2025.
One of the key changes that will come into effect is an increase in the National Minimum Wage (NMW). From April 2025, the NMW for workers aged 25 and over will rise to £9.23 per hour. This is a significant increase from the current rate of £8.91 and is expected to benefit millions of workers across the UK. For those aged between 21 and 24, the NMW will increase to £8.20, while those aged 18 to 20 will see their minimum wage rise to £6.45 per hour.
In addition to the NMW changes, the Employment Rights Act 2025 will also introduce measures to strengthen the rights of workers in the gig economy. This includes the right to a written statement of terms and conditions, which will now be extended to include those working in the gig economy. This will provide greater transparency and clarity for both parties and ensure that workers are aware of their rights and entitlements.
Another significant change under the act is the extension of parental leave and pay. From April 2025, eligible parents will be entitled to 12 weeks of unpaid leave, an increase from the current 8 weeks. This will allow parents to spend more time with their newborns without having to worry about their job security. The act also introduces a new right to double paternity leave, providing fathers with an additional 2 weeks of paid leave within 6 months of the birth of their child.
Moreover, the Employment Rights Act 2025 will introduce measures to combat workplace discrimination and harassment. This includes the introduction of mandatory training for all employees to prevent and address these issues. Employers will also be required to publish their gender pay gap data, providing greater transparency and encouraging them to take steps to address any discrepancies.
As a small business owner, it’s essential to start preparing for these changes now. This includes reviewing your current pay structure to ensure compliance with the increased NMW, updating your employment contracts to reflect the extended parental leave and pay, and implementing the necessary training to prevent discrimination and harassment in the workplace. It’s also a good idea to consult with your employees and seek their feedback on the upcoming changes to help ease the transition.
In conclusion, the Employment Rights Act 2025 brings about crucial changes that will benefit both employees and employers. It is a step towards creating a fairer and more inclusive workplace, and as a small business owner, it’s essential to embrace these changes and adapt accordingly. By staying informed and taking proactive measures, you can ensure that your business is prepared for the upcoming changes and continues to thrive in the years to come.
