Charley Noakes from Verto HR, provides an update on the 2025 employment law changes. The changes are poised to significantly impact all sectors but will require Block Managers employing staff to make strategic adjustments and approach TUPE cautiously.
Reflections on 2024: A Pivotal Year
2024 laid the groundwork for the sweeping changes anticipated in 2025. It was a year of considerable legislative activity, with several significant reforms introduced across the employment landscape. Highlights from the year include:
- January: Codified rights on holiday pay and equalities were introduced. These changes provided clarity on entitlements, ensuring fair treatment across the workforce.
- Spring: A suite of new rights came into force, addressing diverse employee needs. These included unpaid carer’s leave, enabling employees to balance caregiving responsibilities with work; revisions to paternity leave, supporting greater involvement in childcare; extended redundancy protections for vulnerable groups; and significant updates to flexible working policies, promoting better work-life balance for employees across industries. Block Managers, particularly in SME’s without the support of a HR team need to have a stronger knowledge and record keeping of their staff.
- Summer: The introduction of a stricter Code of Practice on fire and rehire practices marked a step towards safeguarding employee rights during organisational restructuring. Employers were required to follow more rigorous procedures to ensure transparency and fairness.
Amendments to TUPE regulations in July reshaped the process. Specifically, the amendments included:
- Clarification on consultation obligations: Employers were required to provide clearer communication with employees during TUPE transfers, ensuring workers were fully informed of changes. Block Managers must think of these new requirements when losing management of blocks which have staff and when the employer may change.
- Strengthened protections for workers: Enhanced safeguards were put in place to preserve employee rights, particularly regarding continuity of employment and contractual terms during transfers.
- Autumn: Regulations governing tip allocation were implemented, ensuring fairness in how gratuities are distributed among staff. Additionally, a new duty to prevent sexual harassment reinforced the need for proactive measures to create safer workplaces, with employers held accountable for protecting employees from both internal and third-party harassment.
- General Election: The Labour Government’s victory in July marked a significant political shift, bringing promises of comprehensive employment reforms under its Plan to Make Work Pay. The Employment Rights Bill, introduced in October, set the stage for transformational changes in employment law, focusing on enhancing worker protections and compliance requirements for employers.
For the Block Management sector, these developments necessitated substantial updates to employment practices. The introduction of flexible working policies required careful scheduling to meet operational needs while accommodating staff requests. Enhanced TUPE regulations influenced how transitions were managed during property handovers, ensuring compliance and fair treatment for affected employees. Moreover, the focus on anti-harassment measures should mean you have reviewed workplace policies to foster safer and more inclusive environments.
Key Changes for 2025: Rate Adjustments and Compliance
Wage and Statutory Payment Updates
From 1 April 2025, several key rate changes will take effect:
- National Minimum Wage:
- 21+ (National Living Wage): Increases by £0.77/hour (6.7%) to £12.21/hour.
- Ages 18-20: Rises by £1.40/hour (16.3%) to £10.00/hour.
- Under 18 and apprentices: Up by £1.15/hour (18.0%) to £7.55/hour.
- Daily accommodation offset: Increases from £9.99 to £10.66/day.
- Statutory Payments (from 6 April 2025):
- Statutory maternity, paternity, adoption, and parental bereavement pay increases to £187.18/week (up from £184.03/week).
- Statutory sick pay (SSP) rises to £118.75/week (up from £116.75/week).
Gender Pay Gap Reporting
Organisations with 250 or more employees must meet reporting deadlines:
- Public sector employers: Report by 30 March 2025, using 31 March 2024 as the snapshot date.
- Private sector and voluntary organisations: Deadline is 4 April 2025, with a snapshot date of 5 April 2024.
For block managers employing site staff, these increases require service charge budgetary adjustments and clear communication with Clients to ensure they understand the additional costs associated with staffing.
Employment Rights Bill: New Protections and Processes
Key Provisions
- Zero-Hours Contracts:
- Ensures workers can access guaranteed-hours contracts reflecting a 12-week reference period.
- Introduces compensation for cancelled or shortened shifts while retaining flexibility for employees opting for zero-hours arrangements.
- Unfair Dismissal:
- Workers gain day-one rights to bring claims for unfair or constructive dismissal.
- Employers may implement probationary periods of 3-9 months, subject to consultation.
- Statutory Sick Pay (SSP):
- Becomes a day-one right, removing the lower earnings eligibility threshold.
- Flexible Working:
- Enhances the day-one right to request flexible working, with refusal grounds requiring reasonableness.
- Trade Union Engagement:
- Simplifies recognition processes and expands workplace rights for union representatives.
- Anti-Harassment Measures:
- Employers must take reasonable steps to prevent sexual harassment and protect employees from third-party harassment.
For Block Managers, these changes mean adjusting employment policies, including shift planning, dismissal protocols, and flexible working arrangements. Compliance will also require additional focus on fostering harassment-free workplaces.
Amendments to the Bill: Extended Timelines and Additional Provisions
Recent amendments published in November 2024 propose:
- Extended Tribunal Time Limits: Time to file most employment tribunal claims will extend from 3 to 6 months.
- Enhanced Equality Plans: Employers must address not only gender pay gaps but also support for those experiencing menopause or menstrual disorders.
These amendments reinforce the need for employers to maintain equitable workplaces and adapt operational processes to meet new legal requirements.
Broader Reforms and Future Changes
Single Enforcement Body
The creation of the Fair Work Agency consolidates enforcement roles for National Minimum Wage compliance, labour abuse prevention, and holiday pay. This unified approach aims to streamline oversight and improve employee protections.
Future Legislation
- Equality (Race and Disability) Bill: Targets ethnicity and disability pay gaps with mandatory reporting for employers with 250+ staff.
- Skills England Bill: Aims to align training with national skills needs through a revamped growth and skills levy.
- Pensions Bill: Proposes merging local government pension assets into larger funds for enhanced economic investment.
Preparing for the 2025 Landscape
For residential Block Managers employing site staff, these legal updates necessitate a proactive approach:
- Budget Planning: Anticipate and account for wage increases and expanded statutory payments in operational budgets.
- Policy Overhauls: Update employment contracts, grievance procedures, and flexible working policies to align with new rights.
- Employee Training: Equip site managers and HR teams with tools to manage the transition effectively, focusing on compliance and communication.
By staying informed and adapting early, employers can navigate these changes while maintaining smooth operations and fostering positive employee relations. For further guidance, please contact our team for expert advice.
Contact Charley Noakes for further information
