Employment law is constantly evolving—and if you’re running a small or medium-sized enterprise (SME), it can be tough to stay on top of every regulation, update, and legal obligation. However, ignoring even a minor change can result in costly penalties or tribunal claims.
At Halecroft Recruitment, we work closely with SMEs across the UK to ensure compliance is simple, strategic, and stress-free. Here's a rundown of the most important employment law changes in 2025 that you need to know.
1. Flexible Working Requests: Now a Day-One Right
As of April 2024, employees no longer need 26 weeks’ service to make a flexible working request. This “day-one” right continues to have a big impact in 2025. Employers now must:
- Handle all requests reasonably
- Respond within 2 months (previously 3)
- Allow up to two requests per year
💡 HR tip: Update your flexible working policy and train managers on handling requests fairly and consistently.
2. Increased Focus on Menopause Support in the Workplace
While no legislation mandates menopause policies (yet), employment tribunals are increasingly siding with employees claiming unfair treatment related to menopause symptoms. Proactive employers are:
- Including menopause in their well-being or EDI strategies
- Training line managers on how to respond sensitively
- Offering flexible or phased work arrangements where needed
💡 Consider introducing a standalone menopause policy to demonstrate your commitment and reduce legal risk.
3. Carer’s Leave Introduced
From April 2024, eligible employees now have a statutory right to one week of unpaid leave each year to care for dependants. This includes:
- Parents
- Disabled relatives
- Partners with long-term care needs
Employers cannot refuse a valid request, and protections against dismissal or detriment apply.
💡 Make sure your time-off policies and leave tracking systems reflect this new entitlement.
4. Changes to Holiday Pay Calculations for Irregular Workers
For part-year and irregular-hours workers, holiday pay must now be calculated using a 52-week reference period—even if the worker doesn’t work every week.
This ensures fairer compensation, but it adds complexity for payroll and HR.
💡 Check your payroll provider or accountant is applying the correct formula—or speak to our HR consultants for help.
5. Ethnicity Pay Gap Reporting—Voluntary but Growing
While not mandatory, an increasing number of UK companies are voluntarily publishing their ethnicity pay gap data in 2025. Doing so can:
- Build trust with diverse talent
- Demonstrate commitment to equity
- Strengthen your employer's brand
💡 If you’re already reporting your gender pay gap, consider extending your data analysis to ethnicity.
Need Help Staying Compliant?
Halecroft Recruitment provides HR consultancy and support designed for SMEs—whether you need help updating policies, training managers, or managing employee issues. Don’t risk costly mistakes. Let’s get your HR strategy compliant and commercial.