Top 5 recent workplace developments – March 2025

Here is our selection of key recent employment law developments for employers, HR professionals and in-house lawyers

1. Employment Rights Bill: Amendments to Bill and responses to consultations 
2. April changes: New employment rights and rates increases
3. Constructive unfair dismissal: Breach of implied term of trust and confidence
4. Unfair dismissal: Job application information
5. Workplace culture: Remote and hybrid working

1. Employment Rights Bill: Amendments to Bill and responses to consultations 

The UK government has introduced significant changes to the Employment Rights Bill and published the results of its recent consultations.

We cover some of the key developments here – further details are set out in: What employers need to know about the latest updates to the Employment Rights Bill. 

Collective redundancy consultation: Originally, the Bill proposed to change the rules so that collective consultation would be required whenever an employer proposed to make 20 or more redundancies, regardless of whether they are employed at one site or not. Under the new proposals, where an employer proposes to make redundancies at more than one site, separate regulations will set out the threshold for deciding whether the obligation to collectively consult is triggered. 

The government has confirmed it plans to double the protective award that can be awarded by Tribunals where employers fail to meet their obligations to collectively consult - from 90 days to 180 days’ gross pay per employee.

Fire and rehire: The recent consultation considered whether interim relief should be available to employees who bring unfair dismissal claims in “fire and rehire” and “fire and replace” scenarios. While the government won’t be taking this forward, it is pressing ahead with its plans to make the practice of “fire and rehire” automatically unfair except in very limited circumstances - where an employer is in severe financial distress. In those (narrow) situations, the employer would need to comply with the Code of Practice on dismissal and re-engagement.

Zero hours contracts and agency workers: The response to the consultation confirms that the same protections will apply to agency workers as zero or low hours workers: they too will have a right to be offered guaranteed hours contracts and have a right to reasonable notice of shifts and any changes to their shifts.

Another key change is a new provision which will allow a collective agreement to contract out of the rights to guaranteed hours and reasonable notice of shifts, for both zero hours and agency workers, provided certain formalities are complied with.

Dismissals during and after pregnancy: The government has given further insight into its plans to crack down on dismissals of employees who are pregnant, on maternity leave or within six months of returning to work. An amendment to the Bill provides for regulations to set out specific notices and “other procedures” that must be followed. The explanatory notes indicate that the intention is to ban such dismissals except in specific circumstances. We will need to wait for the regulations to be published to see exactly what will be required in practice.

Enforcement of employment rights and protections: The Bill creates a new state enforcement agency, Fair Work Agency, which will initially take over duties covered by existing enforcement agencies. Amendments to the Bill provide new enforcement powers including the ability to bring Tribunal proceedings on behalf of a worker where they have the right to bring a claim but it appears the worker is not bringing one.

Practical point:

The latest amendments will not be the final position on the Bill as further changes are likely to be made as it works its way through Parliament. The Bill has passed to the House of Lords, where its second reading is scheduled for the end of March 2025. 

We do not yet have a timeline of when the reforms will come into force. Many of the changes require commencement regulations to bring them into force, and much of the detail will be set out in substantive regulations – some of which will require further consultation which is expected later this year. 

The ethnicity and disability pay gap reporting consultation has now been published. It seeks views on how to implement mandatory ethnicity and disability pay gap reporting for large employers. The consultation closes on 10 June 2025. 

2. April changes: New employment rights and rates increases

We set out the new statutory rates that come into effect in April 2025, as well as the new right to paid neonatal care leave which applies in relation to babies born on or after 6 April 2025.

1 April 2025 - National Minimum Wage increases: 

• £12.21 per hour for workers aged 21 and over (up from £11.44)
• £10 per hour for 18 to 20 year olds (up from £8.60)
• £7.55 per hour for 16 and 17 year olds and apprentices (up from £6.40)

6 April 2025:

• Employer National Insurance Contributions (NICs) changes:

Employer NICs rise to 15% of employee earnings (up from 13.8%)

The threshold at which employers start paying employer NICs on a worker's earnings decreases from £9,100 to £5,000 per year

• Statutory sick pay increases:

New weekly rate: £118.75 (up from £116.75)

• Statutory parental pay increases

New weekly rate: £187.18 - for statutory maternity, paternity, adoption and shared parental pay (up from £184.03)

• Tribunal compensation limits & Statutory redundancy pay increases

New limit on a week’s pay, for the purposes of calculating redundancy and compensation for unfair dismissal awards: £719 (up from £700) - applies where the effective date of termination falls on or after 6 April 2025
The maximum compensatory award for unfair dismissal increases to £118,223 (from £115,115)

• Paid Neonatal Care Leave comes into force: 

The new rights will give parents of babies born on or after 6 April 2025 up to 12 weeks’ leave and pay when their baby needs specialist neonatal care for at least seven continuous days within the first 28 days of birth. While neonatal leave will be a day one right, parents will need 26 weeks’ continuous service to qualify for neonatal care pay. This right will be in addition to existing family leave entitlements that parents may have.

Practical point:

The changes to employer NICs will be particularly significant for employers, as well as the substantial increase in NMW rates.

Employers should update their family friendly policies to include provision for the new right to paid neonatal care leave. If you would like assistance with a neonatal care leave policy, please get in touch.

3. Constructive unfair dismissal: Breach of implied term of trust and confidence

An employment tribunal has ruled that an employee was constructively dismissed after their perceived demotion.

Mr Walker was branch manager at estate agency Robsons from 2017. In 2022 he was moved to a different branch but was asked to move back the following year following his replacement’s resignation. The sales director decided Mr Walker would share the branch manager role with a more junior colleague but had not discussed this with him. On his return, he discovered that this colleague had taken the “back desk” which was traditionally reserved for the branch manager and Mr Walker was assigned the “middle desk” which he interpreted as a demotion to assistant manager status. After a heated argument with the director, he resigned and claimed constructive unfair dismissal. 

A tribunal concluded that the desk move, which was perceived as a demotion, and incidents of poor communication, in particular the failure to inform Mr Walker that he would share the branch manager role, was conduct that was likely to destroy or seriously damage the relationship of trust and confidence. It was found that Robsons had breached the implied term of trust and confidence and that Mr Walker was constructively dismissed.

Practical point:

Where a demotion, such as a change in an employee’s status or responsibilities, occurs without their consent or the contractual right to impose it, the employee may resign and bring a constructive dismissal claim.

This case is a reminder to employers of the importance of good communication with employees, and ensuring they are informed about changes that impact their role.

Walker v Robsons Rickmansworth Limited

4. Unfair dismissal: Job application information

The EAT has ruled that an employee who failed to disclose a previous gross misconduct dismissal on his application form was fairly dismissed.

The Border Force job application form included a free-text box for “Employment History”. When Mr Easton applied for a job there, he listed only the years (not months) of his previous employment which did not reveal a three-month employment gap after he was dismissed for gross misconduct from another Home Office role. He also did not mention this at interview. This was however discovered after he started working there and a disciplinary investigation subsequently found he had been dishonest in his job application by omitting relevant information. He was dismissed for gross misconduct and brought an unfair dismissal claim. 

The EAT concluded that the tribunal was entitled to find that the employer had reasonable grounds to believe that Mr Eaton’s decision to omit his previous dismissal for gross misconduct and three-month unemployment was dishonest. A reasonable applicant would understand that an “Employment History” section required a full and transparent account, including providing information about any employment gaps – and Mr Eaton’s decision not to provide this information was dishonest.

Practical point:

While a deliberate failure to include relevant information in an application form may be grounds for dismissal, employers should ensure that their application forms:

• State clearly the information that is required 
• Include a declaration for the job applicant to sign, confirming that they understand that if they withhold relevant information or provide false information, they may be subject to disciplinary action

Easton v Secretary of State for the Home Department (Border Force)

5. Workplace culture: Remote and hybrid working

The House of Lords Committee on Home-based Working has published a call for written evidence for its inquiry into the effects and future development of remote and hybrid working in the UK.

In its inquiry, the Committee on Home-based Working will consider the challenges and opportunities of remote and hybrid working for workers and employers, the impact of remote and hybrid working on productivity, and any wider consequences of remote and hybrid working for the UK economy and society. 

The call for evidence seeks written submissions on a number of issues, including:

• The impact of remote and hybrid working on individual physical and mental health
• The challenges and opportunities of remote and hybrid working for workers and employers – and the extent to which these vary depending on the worker’s characteristics and on the nature of the employer
• Balancing the needs of workers and employers to ensure mutually beneficial employment arrangements
• Why some employers have implemented back-to-office mandates, while others continue to support remote and hybrid working
• Whether there are any key policy or legislative changes the government should make in respect of remote and hybrid working

Practical point:

The deadline for submissions is 10am on 25 April 2025. The Committee will report by 30 November 2025.