Employers face a fast-changing workplace environment in 2025. New rules and shifts in working patterns mean businesses must keep their policies, contracts and procedures up to date not just to avoid penalties, but to protect staff, maintain morale and run efficiently. Below are the core workplace rules every UK employer should understand this year and the practical steps to stay on top of them.
Right to Work checks remain essential
Employers must continue to carry out right-to-work checks before employing someone and keep appropriate records to establish a statutory excuse against liability for illegal working. Follow the current guidance on acceptable documents and follow-up checks to reduce exposure to civil penalties.
Practical steps: keep a clear checklist for acceptable documents, record who checked them and when, and run follow-up checks when required (for example where visas have time limits).
Holiday entitlement and holiday-pay calculations have changed
Reforms introduced from 2024 simplified holiday entitlement and how holiday pay is calculated. Employers should review how leave is accrued, how pay is calculated for irregular hours and ensure payroll and HR systems are aligned with the new approach.
Practical steps: update payroll rules, provide clear staff guidance on entitlement, and check historic calculations where necessary (especially for workers with variable hours).
Flexible working: expect more requests and clearer expectations
Flexible and hybrid working practices are now widespread. Employers should have a clear, fair process for handling flexible working requests and consider reasonable adjustments where required. Document decisions and keep an audit trail of requests, consultations and outcomes.
Practical steps: publish a consistent request process, train managers on handling requests, and set out trial periods and review points where arrangements are agreed.
Redundancy and consultation procedures must be followed carefully
Where roles are at risk, employers must follow fair selection, consultation and notice procedures. Early planning, clear communication and documented selection criteria reduce the risk of disputes and help preserve trust within teams
Practical steps: create a redundancy timeline, run fair selection scoring, consult meaningfully with affected staff (and unions where relevant) and document all steps.
How LexComply Associates can help
LexComply Associates provides practical, business-focused support to update policies, prepare staff briefings, set up record-keeping systems and create easy-to-use templates for flexible working, redundancy, holiday and health & safety processes. If you’d like a quick review of your current employment policies or a starter pack to simplify your compliance work, get in touch.