ARTICLE
17 July 2025

UK Employment Developments July 2025

AO
A&O Shearman

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
As we move into the second half of 2025, several important developments are emerging that HR, legal and compliance teams should have on their radar.
United Kingdom Employment and HR

As we move into the second half of 2025, several important developments are emerging that HR, legal and compliance teams should have on their radar.

Employment Rights Bill: strategic planning starts now

The Employment Rights Bill continues its passage through Parliament, with amendments being introduced at each stage. Only proposals with government backing are likely to become law. One high-profile change that does have Government support is the banning of non-disclosure arrangements in relation to most forms of discrimination and harassment. This particular change could have substantial ramifications for employers, as they may have less incentive to settle claims without the guarantee of confidentiality.

More details and insights about all the proposals will become available once they have been debated at the Report stage.

While the finer details are still being finalised, the anticipated reforms will have a real impact on employers. Now is a good time to review your strategy and relevant policies. For example, consider updating recruitment practices and training in preparation for the introduction of day-one unfair dismissal rights, expected next year.

Apprenticeship reform: shortened duration from summer

New rules coming into force this summer will reduce the minimum duration of some English apprenticeships from 12 months to eight months. Employers engaging apprentices should review and update apprenticeship agreements and training records to ensure compliance.

Sexual harassment: one year on

October marks one year since the employer duty to take reasonable steps to prevent sexual harassment came into effect. Employers should continue to review risk assessments and consider whether further workplace culture training is needed.

Pay transparency: a growing priority

There is a clear shift towards greater pay parity and transparency, both in the UK and across Europe. Ethnicity and disability pay gap reporting are on the horizon. While the EU Pay Transparency Directive does not apply directly in the UK, it is shaping employee expectations. Now is the time to assess how your organisation collects pay data and what steps may be needed to meet emerging standards.

To help you stay on top of these developments, we've attached our latest six-month snapshot calendar, which outlines key dates and upcoming changes.

If you'd like to discuss how these developments may affect your organisation, or if you'd like support reviewing your policies or preparing for upcoming changes, please don't hesitate to contact us. We'd be happy to help.

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UK employment developments July 2025

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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