Given the Government’s plans for employment law reform, we highlight some key changes and appeal court decisions to look out for in 2025.

Coming into force in 2025: 

1. 6 January 2025 - new employment tribunal rules came into force.  
2. 20 January 2025 - employment tribunals will have the power to increase or reduce any award it makes in ‘fire and rehire’ cases by up to 25% for any unreasonable failure to comply with the statutory Code of Practice on Dismissal and Re-engagement. 
3. April 2025 - it is expected that employees with parental (or other personal) relationships with children receiving neonatal care will be entitled to up to 12 weeks of paid neonatal care leave. 
4. 6 April 2025 - employer National Insurance contributions will increase from 13.8% to 15%. Employers will also have to start paying NI on each employee’s salary over £5,000 p.a. 
5. April 2025 - the Employment Rights Bill (see our insight - The Employment Rights Bill – what you should be doing now | Capsticks – for further details) is expected to be passed into law. It is currently going through the parliamentary process (see How does a bill become a law? - UK Parliament for further details of the process and track the Bill’s progress here - Employment Rights Bill).  

However, the only elements of the Bill that will come into effect in 2025 are:  

• On the date the Bill is passed - the repeal of the Minimum Service Levels (Strikes) legislation  

• Two months after the date the Bill is passed - (1) electronic balloting for industrial action, (2) trade union rights of access to workplaces, and, (3) employers being required to inform new employees of their right to join a trade union.  

Appeal Court decisions expected in 2025 

• Higgs v Farmor’s School  

Ms Higgs was dismissed following a parent’s complaint about Facebook posts she had made which expressed her religious beliefs about same sex relationships and trans rights being taught in primary schools. Ms Higgs’ appeal against the Employment Appeal Tribunal’s decision was heard by the Court of Appeal on 2 October 2024. The Court of Appeal’s decision is expected to set a much needed precedent for future cases concerning protected beliefs in the workplace, especially where those beliefs intersect with other protected characteristics and involve a third-party complaint about the expression of an employee’s personal views on a social media platform. 

• For Women Scotland Ltd v Scottish Ministers  

This case was heard by the Supreme Court on 26 and 27 November 2024. The issue to be decided is: is a person with a full gender recognition certificate which recognises that their gender is female, a “woman” for the purposes of the Equality Act 2010? The outcome of this case will have implications for the running of single-sex spaces and services and how measures aimed at tackling discrimination will operate in the future. 

• Bicknell and the BMA v NHS Nottingham and Nottinghamshire ICB 

The Employment Appeal Tribunal held that the TUPE Regulations (Transfer of Undertakings (Protection of Employment) Regulations 2006) do not apply to the reorganisation of purely commissioning organisations / services. However, in doing so, the Employment Appeal Tribunal expressed doubts about whether the leading authority (Nicholls v London Borough of Croydon) had been correctly decided (see our insight for further details - TUPE Regulations do not apply to the reorganisation of Clinical Commissioning Groups (CCGs) | Capsticks). We now wait to see whether this issue will be considered by the Court of Appeal, as Dr Bicknell and the BMA have been granted permission to appeal.

Preparing for change 

Employers need to start preparing for the forthcoming legislative changes now, which will include a wide-ranging review of internal processes and policies, as well as engagement with managers to ensure that they are aware of the key changes. 

We shall continue to keep you updated as the Employment Law Bill progresses and as and when further information becomes available on the appeal court decisions. 

How Capsticks can help 

Capsticks has significant experience of supporting employers to navigate changes in employment law and policy, from reviewing of current policies, contracts, practice and implementing change, to delivering training to employees at all levels. We also deal with any complaints or specific issues that may arise in individual cases, by conducting investigations, supporting decision makers and HR, and defending any employment tribunal claims. 

For further information on how we might assist your organisation, please contact Sian Bond, Jonathon Lewis and Paul McFarlane.