Legal Must-Haves: What UK Employers Are Required to Offer in 2025 (and Beyond)

As the UK moves from 2025 into 2026, employment law continues to evolve. The Employment Rights Bill has strengthened the foundations of worker protection and introduced tougher penalties for employers who fail to meet statutory obligations. Alongside this, a renewed focus on fair pay, flexibility and equality means employers must stay alert to their legal responsibilities. Understanding these obligations is essential not only to ensure compliance but also to attract and retain staff in an increasingly competitive labour market.

The Evolving Employment Landscape

The 2025 reforms are part of a wider government drive to improve job security and strengthen workplace standards. The Employment Rights Bill has modernised key areas of employment law, enhancing protection for workers and increasing the penalties for non-compliance. In addition, the Fair Work Agency is expanding its remit and will gain broader enforcement powers in 2026, particularly around zero-hours arrangements, fair scheduling and flexible work practices. Employers that act now to align with these requirements will be best placed to manage change and maintain compliance as new rules take effect.

Core Legal Requirements for UK Employers in 2025

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• Written Employment Particulars
  All employees and workers must receive a written statement of employment particulars within two months of starting work. This must clearly outline terms such as pay, hours, holiday entitlement and notice periods. Employers who fail to provide this information may be liable for compensation of between two and four weeks’ pay.

• National Minimum Wage
  From April 2025, the National Minimum Wage for workers aged 21 and over is £11.44 per hour. Employers should review payroll regularly to ensure correct banding and anticipate the next rate adjustment due in April 2026.

• Workplace Pension
  Automatic enrolment into a workplace pension remains a legal requirement for anyone aged over 22 and earning £10,000 or more per year. The minimum employer contribution is 3 percent of qualifying earnings. Failure to comply can result in fines of up to £10,000 per day, so employers should keep pension records accurate and up to date.

• Paid Annual Leave
  Employees are entitled to at least 28 days of paid annual leave each year, equivalent to 5.6 weeks. This includes statutory bank holidays and must be pro-rated for part-time staff. Employers should ensure holiday pay reflects regular earnings, including overtime and bonuses where applicable.

• Statutory Sick Pay (SSP)
  The statutory sick pay rate for 2025 is £116.75 per week, payable for up to 28 weeks to qualifying employees. Employers should ensure systems are in place for accurate record keeping and be aware that further increases are expected in 2026 under the government’s employment rights roadmap.

• Family Leave and Pay
  Maternity leave remains at 52 weeks, with statutory maternity pay available for up to 39 weeks. The first six weeks are paid at 90 percent of the employee’s average earnings, followed by £184.03 per week for the remaining period. Paternity leave continues to provide at least two weeks of paid leave, with new “day one” eligibility rights coming into force in 2026. The introduction of neonatal care leave in 2025 gives eligible employees up to 12 weeks of paid leave to care for a baby receiving neonatal care. Adoptive and shared parental leave entitlements remain unchanged.

• Redundancy and Unfair Dismissal
  Employees with two or more years of service are entitled to statutory redundancy pay, capped at £19,290. Unfair dismissal protection currently applies after two years’ service, but reforms due in 2026 will extend “day one” protection in specific cases such as health and safety concerns, whistleblowing and family-related leave. The maximum compensatory award for unfair dismissal remains £118,223.

• Payslips
  All workers, including those on zero-hours or agency contracts, must receive itemised payslips showing gross pay, deductions and net pay. This requirement supports transparency and helps prevent pay-related disputes.

• Anti-Discrimination and Equal Pay
  Employers must ensure equal pay for equal work and make reasonable adjustments for employees with disabilities. The 2025 equality guidance highlights the importance of inclusive recruitment and awareness of workplace factors such as menopause and mental health. Employers should keep equality policies current and train managers to handle related issues effectively.

• Flexible Working
  From April 2025, every employee has the right to request flexible working from their first day of employment. Employers must respond reasonably and provide clear written reasons for any refusal. Flexible working policies should align with ACAS guidance and reflect post-pandemic workplace trends such as hybrid and remote work.

• Zero-Hours, Part-Year and Agency Worker Protections
  New protections require employers to offer guaranteed hours where work patterns are regular, give advance notice of shifts and provide compensation for cancelled shifts. These rights are designed to improve stability for workers on irregular contracts. The Fair Work Agency will begin enforcing these rules in 2026, marking a significant step towards fairer work scheduling practices.

• Looking Ahead: Key Changes Coming in 2026
  Several important updates are already confirmed for 2026. These include day one eligibility for paternity leave, expanded unfair dismissal protection from the first day of employment in certain cases and higher statutory sick pay rates. The Fair Work Agency will also take on broader powers to audit and enforce fair treatment for workers. Employers should review their handbooks, contracts and internal policies now to prepare for these developments and avoid disruption when the new rules take effect.

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Employer Compliance Checklist (2025–2026)

• Provide written employment particulars within two months

• Pay a minimum of £11.44 per hour to workers aged 21 and over

• Maintain workplace pension enrolment and a 3 percent employer contribution

• Manage annual leave and statutory sick pay accurately

• Update family leave and flexible working policies

• Audit pay equality and inclusion practices

• Ensure all workers receive itemised payslips

• Prepare for 2026 day one rights and Fair Work Agency enforcement

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Consequences of Non-Compliance
Non-compliance can result in significant financial penalties, tribunal claims and damage to an employer’s reputation. Repeated breaches may attract investigation by the Fair Work Agency or HMRC, with penalties extending to daily fines and compensation orders. Proactive auditing, accurate documentation and clear internal communication are essential to minimise risk.

Conclusion
The period from 2025 to 2026 marks an important shift in UK employment law. Employers that take a proactive approach will not only remain compliant but also strengthen employee trust and engagement. Staying informed about new requirements and adapting early is key to maintaining a responsible, legally compliant workplace.