Recent and Upcoming Employment Law Changes
Several legislative changes were brought in recently to enhance employee rights and protections, necessitating that employers review and update their policies and practices to ensure compliance.
1. National Minimum Wage and National Living Wage Increases
Effective 1 April 2025, the hourly rates will be:
- National Living Wage (ages 21 and over): £12.21 (up from £11.44)
- Ages 18 to 20: £10.00 (up from £8.60)
- Ages 16 to 17 and apprentices: £7.55 (up from £6.40)
2. Statutory Sick Pay (SSP) Adjustments
From 6 April 2025:
- SSP Rate: Increases to £118.75 per week (up from £116.75)
- Eligibility: Removal of the earnings qualification criteria, making all employees eligible regardless of pay level
3. Employer National Insurance Contributions
Starting 6 April 2025:
- Contribution Rate: Rises to 15% (up from 13.8%)
- Secondary Threshold: Decreases to £5,000 per annum (down from £9,100)
- Employment Allowance: Increases to £10,500 (up from £5,000) for eligible employers
4. Neonatal Care (Leave and Pay) Act 2023
Effective April 2025, this act introduces statutory leave and pay entitlements for parents of babies requiring neonatal care.
5. Carer’s Leave Act
From April 2025, employees in England, Wales, and Scotland are entitled to up to one week of unpaid leave per year to care for someone with long-term care needs, applicable from the first day of employment.
6. Flexible Working Rights
Changes anticipated in 2025 include:
- Right to Request: Employees can request flexible working arrangements from the first day of employment
- Requests Allowed: Up to two requests in any 12-month period
- Employer Response Time: Employers must respond within two months
- Consultation Requirement: Employers must consult with employees before refusing a request
7. Worker Protection (Amendment of Equality Act 2010) Act 2023
Effective 26 October 2024, this act imposes a duty on employers to prevent sexual harassment of their employees and introduces liability for third-party harassment.
8. Employment (Allocation of Tips) Act 2023
In force from 1 October 2024, this act ensures that tips, gratuities, and service charges paid by customers are allocated to workers.
Next Steps for Cleaning Business Owners
- Review Contracts & Policies: Update employment contracts, handbooks, and procedures to reflect the new laws.
- Reassess Pricing: Factor in increased costs when setting client rates to protect margins.
- Train Managers: Educate supervisors on these changes to ensure they’re implemented correctly.
- Plan for Contingencies: Develop staffing solutions for absences and flexible working arrangements.
- Seek Advice: Consider working with HR professionals to navigate these changes effectively.
By preparing now, cleaning business owners can navigate these changes smoothly, ensuring compliance while maintaining a productive and happy workforce. There are of course more changes expected when the 28 point Employment Rights Bill is passed later this year, but we will wait to publish confirmations of these changes until they are finalised, especially as many of them won’t come into effect until 2026.
We have created a costs comparison spreadsheet in DCBN free resources for you to download and use to see the effects of the rise in national living wage and employers national insurance will have on employment costs.
