Key employment law updates | February 2025

Welcome to our monthly update, where we share upcoming changes to employment law.

Amendments to the Employment Rights Bill

The Employment Rights Bill ("ERB") is one step closer to being granted Royal Assent, having recently completed the Committee Stage of the parliamentary procedure. As a result of this process, an amended version of the ERB has recently been published. Notable changes include:

• An extension to the time limit for bringing employment tribunal claims from three months to six months (for more detail on how this might impact your business, please see here;
• Amendments relating to an employer's duty to make a guaranteed hours offer and the requirements for withdrawing such offers;
• An inclusion of a chapter in relation to seafarers regarding their wages and working conditions, and international agreements relating to maritime employment;
• Additional statutory sick pay measures for Northern Ireland, including the removal of a waiting period and introducing a lower earnings limit.

The ERB will continue to be scrutinised and we will keep you updated on any further changes. Whilst many changes proposed by the ERB are not due to come into effect until 2026, it is prudent for employers to stay updated on the key developments, as well as considering reviewing their workplace policies and providing additional training to staff and managers on the proposed new rights and their responsibilities. It is vital to put in place preparatory steps now prior to the changes.

Office of the Whistleblower Bill

The Office of the Whistleblower Bill will have its second reading in the House of Commons on 25 April 2025. The background behind the bill is that it has been contended for a long time that current legislation does not offer adequate protection for whistleblowers, who can be met with lengthy litigation proceedings leading to subsequent health and financial issues.

In response to this, the Bill proposes to establish an independent office of the whistleblower (OWB). This will provide whistleblowers the option to report wrongdoing to an independent body, with the aim of giving potential whistleblowers more confidence to speak out. The Bill also proposes to make it a criminal offence to subject a whistleblower to a significant detriment if they decide to make a protected disclosure.

Businesses should ensure that they review and update their whistleblowing procedures and cooperate fully if a protected disclosure is made, particularly if the OWB is later established. 

UK employers remain committed to DEI

Despite the US Government (and big names in business) moving away from diversity, equity and inclusion (DEI) goals and initiatives in recent months, recent survey results show that UK businesses remain committed to DEI.

One survey of over 1,000 UK organisations (by Culture Amp) found that 74% have a DEI programme in place, with one-third maintaining stable budgets for their programme and just over one-quarter increasing funding. Another survey by Occupational Health Assessment Limited of 140 UK companies also found strong support for diversity and equality policies. Meanwhile, the World Economic Forum reports that more than half of employer plan on implementing comprehensive DEI training and setting DEI goals, targets or quotas over the coming years.

There is no doubt that DEI has been in the global headlines recently, but in the UK context, businesses appear unshaken in their commitment to improving diversity and inclusion across the workforce.

Keeping employment records – data protection guidance for employers

Earlier this month (February 2025), the Information Commissioner's Office (ICO) updated its guidance for employers on keeping employment records. The guidance covers a number of employment-related data issues, including special category and criminal offence information.

The guidance confirms the need for employers to identify a lawful basis where workers' personal information is being kept and recorded. There is no one lawful basis which is better than another, but the most relevant basis will depend on the nature of the relationship between worker and employer. To identify the lawful basis, the ICO have an interactive guidance tool which can be found here. 

Pensions Updates

The Treasury Committee has called for evidence to assist in its inquiry on the potential impacts of the increasing use of artificial intelligence ("AI") in financial services, including retail banking, investment banking, insurance, and pensions. The deadline for submissions is Monday 17 March. For more information around AI, please see our recent article on the legal and practical complexities of AI in the employment context.

The Pensions Regulator ("TPR") has issued a blog detailing recent efforts to combat pension scams. This follows TPR's collaboration with the BBC's EastEnders programme to help raise awareness of pension scams, as detailed in our December update. TPR lead the Pension Scams Action Group ("PSAG"), which is a multi-agency team uniting law enforcement, government, and the pensions industry. TPR's approach is again highlighting the importance of public awareness and industry cooperation in safeguarding pension assets.