Key employment law updates | January 2025

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

Dismissal and re-engagement code of practice

As mentioned in our December bulletin, from 20 January 2025, employers who do not comply with the dismissal and re-engagement code of practice, otherwise known as "fire and rehire", could be ordered to pay increased protective awards of up to 25%. Employers should take all reasonable steps to explore alternatives to dismissal and engage in meaningful consultation, otherwise they could face the increased possibility of unfair dismissal claims, along with the risk of paying increased compensation to each employee impacted.

Alex McIntyre MP introduced Domestic Abuse (Safe Leave) Bill to the House of Commons

On 7 January 2025, Alex McIntyre MP introduced the Domestic Abuse (Safe Leave) Bill to the House of Commons. This proposed law would entitle domestic abuse victims to 10 days paid leave to allow them to find a place of safety, deal with health issues, and attend police interviews.

It is important for employers to be aware of domestic abuse and to ensure that they have implemented policies which can support victims in the workplace, as well as creating an environment to allow victims to feel comfortable coming forward.

The second reading of this Bill is due to take place on 20 June 2025.

Call for statutory miscarriage bereavement leave

A report published by the Women and Equalities Committee (WEC) states that women who have a miscarriage during the first 23 weeks of pregnancy, as well as their partners, should be entitled to two weeks of paid bereavement leave from work.

The current position is that only women who lose a baby after 24 weeks are entitled to two weeks paid leave. However, the proposed amendment aims to extend this to those who experience the early loss of a baby. The WEC have stated that it will table their amendments to the Employment Rights Bill, which is due to come into force in late 2026.

Should the proposed amendment be accepted, employers will need to ensure that they have the appropriate guidance and policies in place, as well as providing managers and HR teams with the appropriate training to support their employees. The charity, Aching Arms, can offer support services to both parents and employers to assist at such a difficult time: Aching Arms – the charity bringing comfort after baby loss.

Neonatal care leave will take effect from 6 April 2025

As previously mentioned in our December bulletin, it was expected that new day-one rules on neonatal care leave and pay would come into force in April 2025. The Department for Business and Trade have now confirmed that this law will come into force from 6 April 2025, subject to Parliamentary approval.

This will apply to parents of babies, born on or after 6 April 2025, who are admitted into hospital up to the age of 28 days and who have a continuous stay in hospital of seven days or more. Parents will be eligible to take paid time off work for up to 12 weeks, on top of other leave entitlements such as maternity and paternity leave.

As well as this, Statutory Neonatal Care Pay will be available to parents who meet continuity of service requirements (28 weeks) and a minimum earnings threshold of the £123 Lower Earnings Limit, which is set to increase to £125 in April.