Employment Update October 2025
Employment Update October 2025

21 October 2025

What’s new?

Flexible Working Requests

  • The statutory right to request flexible working now applies from day one of employment, removing the previous 26-week qualifying period.
  • Meaning employees can now request flexible working from their first day of employment.
  • Employers are required to respond to these requests within two months and can only refuse for specific business reasons.

Action point: Review your flexible working policy and ensure managers know how to handle requests appropriately in line with the statutory rights.

Carers Leave

  • Employees are now entitled to one week of unpaid carer’s leave each year, available from day one of employment.
  • This right is in addition to existing leave entitlements and is designed to support employees with caring responsibilities for dependants.

Action point: Update your staff handbook, consider whether you want to offer paid carers leave, and communicate this entitlement to your employees.

 Neonatal Care (Leave and Pay)

  • New day-one right to neonatal care leave for employees.
  • Employees will receive up to 12 weeks of leave (and pay subject to eligibility) in addition to other statutory leave, including maternity and paternity leave.
  • This policy applies to parents of babies who, within 28 days of birth, require specialist neonatal care for at least 7 days and this leave must be taken within 68 weeks of the birth.
  • Parents with at least 26 weeks’ continuous service and earning above the lower earnings limit will also be entitled to Statutory Neonatal Care Pay as well as the leave.
  • The rate of pay will be at the same rate as other family leave payments.

Action point: Update your staff handbook, consider whether you want to offer enhanced neonatal care leave pay, and communicate this entitlement to your employees.

Enhanced Redundancy Protection for Family Leave

  • Redundancy protection for employees on maternity, adoption, or shared parental leave has been extended.
  • Employees must be given priority for suitable alternative roles from the point they notify you of their pregnancy or adoption, up to 18 months after the birth or placement.

Action point: Review your redundancy policy and procedures to ensure compliance with these extended protections.

Holiday Pay Calculations

  • New regulations clarify how to calculate holiday pay for irregular hours or part-year contracts.
  • Employers must ensure that holiday pay reflects average earnings, including overtime and commission.

Action point: Check your payroll processes and contracts to ensure holiday pay is calculated correctly.

Preventing Sexual Harassment

  • Employers now have a legal duty to take reasonable steps to prevent sexual harassment in the workplace.
  • Failure to do so can lead to higher compensation awards at tribunal.

Action point: Make sure you have clear policies and provide regular training to all staff..

 Looking ahead

 The Employment Rights Bill- the roadmap for implementation

The Government has announced a roadmap for the introduction of the various measures included in the Employment Rights Bill. Some proposed key dates to remember are as follows…

April 2026

  • Paternity leave and unpaid parental leave will become ‘Day one’ rights.
  • Enhanced whistleblowing protections will be implemented.

October 2026

  • Restrictions on ‘fire and rehire’ to be implemented.
  • Introduction of a requirement on employers to take ‘all reasonable steps’ to prevent sexual harassment and to impose employer liability for third-party harassment.

…2027

  • Enhanced dismissal protections for pregnant women and new mothers.
  • The right to claim unfair dismissal to become a ‘Day one’ right.
  • Protections for zero-hours workers.
  • Improved access to flexible working.

Conclusion:

These changes are designed to support employees and create fairer workplaces. By updating your policies and training your employees, you can mitigate legal risks and ensure your business remains compliant.

Our highly experienced solicitors will provide expert advice and assist you. Please call or email Sarah Filsell for an initial discussion, 01256 854658 [email protected]

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