Brendan Bah, Employment Law Advisor at LCF Law, explains why employers need to act now to keep pace with the latest wave of employment legislation – and how practical guidance can help them stay compliant, avoid risk and focus on running their business.
In recent months businesses have faced a never-ending barrage of new employment legislation which is complicated enough for large firms with in-house HR teams, but for those SMEs without a dedicated HR function, it can be overwhelming.
During the first three months of the year, nearly all the calls to LCF Works’ advice line, which provides employers with unlimited telephone guidance on employment law, were about April’s new wage rates and National Insurance (NI) increases.
Approximately 3 million workers received pay increases in April, worth around £1,400 per year for eligible full-time workers on the National Living Wage and those on the National Minimum Wage enjoyed an increase of approximately £2,500 per year.
Whilst this is obviously good news for employees, many employers have also seen their Secondary Class 1 NI contributions skyrocketing and the reality is that a lot of businesses are nervous about these significant cost increases.
Prior to this, in October last year, new legislation came into force meaning that employers must now take reasonable and proactive steps to prevent their employees being sexually harassed, rather than merely addressing incidents after they occur.
Failing to meet these requirements can be costly and time-consuming and employers that don’t meet their obligations can face a 25% uplift to compensation awards.
Recent cases have resulted in a teenage girl receiving over £50,000 after enduring physical and verbal harassment, whilst a male manager was awarded over £20,000 for rejecting sexist ‘banter’.
Back to the present day and a major talking point from the government’s Employment Rights Bill are the significant changes for those employed on low or zero-hours contracts, and those employed through agencies.
The Bill includes key provisions that will directly impact these workers, providing job security for employees who have historically faced uncertainty and limited rights.
Among the changes are the right to claim automatic unfair dismissal and the right to clearer information regarding the terms of their employment, including guaranteed hours contracts and compensation for cancelled, shortened or rescheduled shifts. This new level of transparency will empower workers to make informed decisions about their employment.
These changes are a significant step forward in promoting fair treatment for all workers and are intended to address the ‘one-sided flexibility’ in relation to zero-hours or low hours workers, and the exploitation of agency workers.
As such they are a crucial advancement in the rights of impacted workers. The bill is expected to become law during the summer with some legislation being implemented in Autumn 2025 and other parts taking effect in 2026.
However, there’s no doubt that employers will need to make major changes to their procedures and operations to effectively accommodate this latest and future legislation. That’s going to take time and careful consideration, and for many that needs to start now.
Stay compliant, manage risk and protect your people with LCF Law
If you need help navigating the Employment Rights Bill or any other employment law or HR-related issue, LCF Law is here to help. We can provide one-time advice or ongoing assistance through our HR subscription package, LCF Works.
LCF Works is ideal for employers that either don’t have a dedicated in-house HR provision or have a small HR team where expert legal advice is sometimes required.
Starting at £200+VAT per month, the package includes unlimited phone and email support as standard and can be tailored to your needs with optional extras such as in-house training and a review of your employment documents.
Contact Employment Law Advisor Brendan Bah on 07518 298 838 or bbah@lcf.co.uk, or Employment Law Partner James Austin at 07729 118 961 or james.austin@lcf.co.uk.