Changes are coming to UK employment law in 2025, and if you work in a membership organisation, you’ll want to stay ahead of them. From pay rises to new rights around flexible working and sick leave, these updates could affect everything from recruitment to staff retention.
But don’t panic! As the membership sector recruitment experts, here’s a clear and practical look at what’s changing and what it means for you:
From 6 April 2025, employer National Insurance contributions (NICs) will rise from 13.8% to 15%. On top of that, the salary threshold at which NICs become payable is dropping from £9,100 to £5,000 per year.
That means employers will start paying NICs sooner on employees’ earnings, increasing payroll costs for many organisations. However - the Employment Allowance is increasing from £5,000 to £10,500, which will help some businesses reduce their NICs bill.
If your membership organisation is growing, it’s worth reviewing your budgets now to see how these changes will affect your hiring plans. Make sure you’re claiming the Employment Allowance if you’re eligible - it could make a real difference.
Read the official Government guidance here.
From 1 April 2025, the minimum wage will rise across the board:
If you employ younger workers or apprentices, as many member-focussed organisations do, this isn’t an insubstantial jump in pay. It’s a good idea to check your payroll and make sure you’re ready for the increase. On the plus side, higher wages could help attract and retain talent in an increasingly competitive market.
From 6 April 2025, Statutory Sick Pay (SSP) will increase to £118.75 per week. There are also ongoing proposals to:
These changes (if confirmed) could mean more sick leave claims - make sure your absence policies are clear and that you’ve got a plan for managing short-term absences effectively.
If you find yourself in need extra support, we can help with effective temporary staffing solutions to cover absences and ensure your organisation runs smoothly, even during unexpected staff shortages.
From April 2025, parents of babies who need hospital care will be entitled to up to 12 weeks of paid leave on top of their existing maternity or paternity leave, regardless of how long they have worked for their employer.
This is a great step forward for working parents, and the Government estimates it will help over 60,000 parents per year. But - it does mean you may need to plan for longer periods of parental leave. Make sure HR teams are aware of the new rights and update your policies accordingly.
Interim support can be an invaluable tool for bridging gaps like maternity and paternity leave. That’s why we built the Interim Hub - to help membership organisations access skilled, pre-vetted workers when they need them most.
While it’s been law since April 2024 that employees have day-one rights to request flexible working arrangements, more reforms are expected within the new draft Employment Rights Bill (announced October 2024). However, it does look as though these will be minimal, and largely centred around employers “right to refusal”.
For extra insights on flexible working, why not also read our recent article “Remote, Hybrid, or In-Office: What’s Right for Membership Organisations?”
As part of Labour’s Plan to Make Work Pay, a new statutory code of practice is in the works to support employees’ “right to disconnect”, meaning that employers shouldn’t expect staff to be available outside of working hours unless necessary.
Regardless of legislation, if your team works remotely (or even across different time zones), clear communication is key. Setting expectations around out-of-hours contact will help prevent burnout and improve work-life balance.
The Government are currently working on draft legislation that includes organisations with 250 or more employees needing to publish their ethnicity and disability pay gaps, similar to gender pay gap reporting.
Even if your membership organisation doesn’t meet the 250-employee threshold, it’s worth reviewing your pay structures now. Voluntary reporting can also help show your commitment to fairness and diversity, which can be a strong attraction for job seekers.
Have salary benchmarking questions? We can help.
There’s no doubt that these employment law changes will affect recruitment, HR policies, and day-to-day operations for membership organisations in 2025. The best way to prepare is to:
Alongside staying compliant, think of staying ahead of these changes as an opportunity to build a stronger, more attractive workplace. After all, happy teams make for happy members!