SMEs: Are You Ready for the New HR Rules? Key UK Employment Law Changes Coming in 2025–2026

At PS Human Resources Ltd, we’re proud to support small and medium-sized businesses (SMEs) across the UK with practical, down-to-earth HR advice.

Over the next 18 months, several major employment law changes are set to take effect – from wage increases and statutory pay updates to tougher enforcement on harassment, zero-hours contracts and more. These changes will impact how you hire, manage, and support your team. 

Here’s what’s coming – and how we can help you stay ahead of the curve.

National Minimum Wage Increases – From April 2025

New hourly rates will apply from 1 April 2025:

  • £12.21/hour – Age 21 and over (National Living Wage)
  • £10.00/hour – Age 18–20
  • £7.55/hour – Age 16–17 and apprentices

What this means for SMEs: We’ll help you review pay structures, manage payroll changes, and communicate clearly with staff – so you remain compliant without disruption.

Statutory Leave and Pay Increases – April 2025

From 6 April 2025, key statutory payments will rise:

  • Statutory Sick Pay: £118.75/week
  • Maternity, Paternity, Shared Parental, and Bereavement Pay: £187.18/week
  • Neonatal Leave (new): Up to 12 weeks’ paid leave for parents of babies in neonatal care

How we help: We’ll update your policies, contracts, and payroll processes to reflect these changes.

New Fair Work Agency – Increased Enforcement

The Government will establish a new Fair Work Agency, with real power to inspect businesses, enforce breaches, and protect employee rights.

For SMEs: Compliance matters more than ever. We’ll conduct a quick but thorough HR health check to identify gaps and keep you protected.

New Anti-Harassment Duties for Employers

Employers will face stronger obligations to actively prevent harassment, including from customers or third parties.

We support you by: Updating your policies and offering practical training for managers to promote a respectful, safe workplace.

Zero-Hours Contract Reforms (Expected April 2025)

Planned reforms include:

  • Guaranteed hours after 12 weeks’ service
  • Compensation for short-notice shift cancellations
  • Greater clarity in employment terms

We’ll help you: Redesign casual contracts and plan for sustainable, compliant workforce flexibility.

Stronger Whistleblower Protections

Coming changes will offer:

  • Greater anonymity for whistleblowers
  • Broader definitions of protected disclosures
  • Penalties for retaliation

We can: Put in place or refresh your whistleblowing procedures to encourage openness while protecting your business.

Real Living Wage – Compliance Deadline: 1 May 2025

If you’re accredited with the Living Wage Foundation, new rates apply:

  • £12.60/hour – UK
  • £13.85/hour – London

What we do: Help you implement these changes smoothly and assess their financial impact.

Coming Soon: Equality (Race and Disability) Bill

Expected in late 2025/early 2026, this Bill will:

  • Require pay gap reporting for race and disability
  • Introduce broader grounds for equal pay claims

For SMEs: We’ll guide you through data collection and policy alignment – one step at a time.

Need a Hand? We’re Here to Help

Whether you’ve got one employee or fifty, staying compliant with employment law changes can feel overwhelming – especially without an in-house HR team.

That’s where we come in.

At PS Human Resources Ltd, we specialise in providing flexible, cost-effective HR support for SMEs. No jargon, no fuss – just friendly, expert advice when you need it.

🔍 Need a contract review?
📋 Want your policies updated?
💼 Thinking about training for your managers?

📞 Call us: 01473 653000

📧 Email us: hello@pshumanresources.co.uk

🌐 Visit: www.pshumanresources.co.uk

PS Human Resources Ltd – Practical, Professional HR Support for SMEs.
Let us handle the HR – so you can focus on growing your business.

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