Winds of Change: The New Era of UK HR Policies in 2025

When Sarah walked into her small human resources office one Monday in September, she noticed two things right away: the inbox overflowing with questions from managers, and a fresh government bulletin that promised “the biggest upgrade to workers’ rights in a generation.” It felt like a turning point—one of those moments when HR isn’t just about compliance, but about rethinking what work should look like, for people and businesses alike. ​

UK HR Policies

What’s Already Shifting​

Some of the changes have already landed—and they’re making a real difference in the day-to-day.​

Higher minimum wages and updated statutory pay​ As of 1 April 2025, the National Minimum Wage / Living Wage has been increased across all age bands. For example, workers aged 21+ (or those eligible) now earn at least £11.44/hour. Younger age bands and apprentices also saw bumps.​Statutory Sick Pay, maternity, paternity, adoption, and shared parental pay also rose.​

Neonatal Care Leave & Pay ​Perhaps one of the more humane policies: parents whose newborns require specialist neonatal hospital care are now entitled to up to 12 weeks’ leave and pay, over and above existing parental leave entitlements. This applies from the first day of work and must be taken within 68 weeks of birth. For many people, this acknowledges something that until now has been handled informally (if at all), often with financial and emotional toll.​

Redundancy, tribunals, and compensation caps rising ​The weekly cap for redundancy pay rose (to £719/week) from April 2025, which increases the maximum statutory redundancy payout. Employment tribunal compensation limits (especially for unfair dismissal) are also up. There have also been increases to what are known as the Vento bands (compensation for injury to feelings in discrimination cases), which means higher payouts in serious cases.

National Insurance (Employer) & Related Costs​ Employers are now paying a higher rate of National Insurance: from 6 April 2025, the employer NIC rate increased (to 15%) and the threshold at which NICs become payable dropped.​

What’s Coming (And What’s Causing Conversations)​

Alongside changes that are already in force, there are a number of proposed or soon-to-arrive reforms that are stirring debate in boardrooms, cafés, and HR forums. ​

Employment Rights Bill ​This is the big umbrella. It has returned to Parliament after scrutiny, and although many provisions won’t take effect until 2026, organisations are already making plans.​

The Bill promises sweeping reforms:​

• Unfair dismissal from day one of employment, instead of requiring a long qualifying period.​

• Stronger rights for flexible working—right from the start. Many expect the “right to request flexible working” to change so that it is easier to invoke, with fewer obstacles for employees.​

• Protections on “fire and rehire” practices, limiting mis-use of contractual changes by dismissal and rehire.​

• More protections around zero-hours contracts: agency workers are being included so that they cannot be used as a loophole to avoid guaranteeing regular hours.​

• Expanded anti-harassment law, including a revived duty for employers to prevent harassment by third parties (e.g. customers, clients) where they can. Questions about how to enforce these are under discussion.

Ban on certain uses of NDAs for workplace wrongdoing​

A proposed change would render non-disclosure agreements (NDAs) void when they seek to silence victims of harassment or discrimination. The idea: people should feel free to speak about misconduct without fear that a legal clause will gag them.

Guaranteed hours, fairer contracts for agency workers​ Another area of debate: ensuring employees (especially via agencies) receive contracts reflecting the hours they typically work. This would reduce exploitative flexibility (or unpredictability), particularly when shifts are cancelled last minute or hours are cut without notice.

UK HR Policies