UK Employment Law Round-Up: October 2025

As we progress through October 2025, the landscape of UK employment law continues to evolve, reflecting significant changes in legislation and emerging trends in the workplace.

This article provides an overview of the key developments and issues that have emerged in the realm of employment law over the past month.

Legislative Updates

Employment Rights Bill

In July 2025, the UK Government published its roadmap for implementing the Employment Rights Bill. The roadmap outlined a phased rollout of 28 major reforms between 2026 and 2027, with some changes taking effect immediately after Royal Assent, which was expected in Autumn 2025.

The House of Lords suggested amendments to the Bill and these were considered by the House of Commons on 15th September 2025. The Bill was returned to the House of Lords, with further considerations scheduled for 28th October 2025.

Non-Disclosure Agreements (NDAs)

On 1st October 2025 new rules come in which affect the enforceability of NDAs in England and Wales with individuals who are (or reasonably believe they are) victims of crime, regardless of whether they have told anyone about that crime. The legislation applies to all sectors and all relationships and circumstances where NDAs may be used. Businesses should make sure that they understand the changes and review their NDAs to ensure they reflect the new rules.

Fraud

Under new rules that came into force on 1 September 2025, large organisations are criminally liable if an employee, agent, subsidiary or other associated person commits fraud with the intention of benefiting the organisation. The onus is on the organisation to prove, on the balance of probabilities, that it had reasonable procedures in place to prevent fraud, or that it was unreasonable for it to have such procedures in place.

Emerging Trends in the Workplace

Rise of Remote Work Policies

With the shift towards flexible working arrangements, many employers are now developing comprehensive remote work policies. These policies not only outline the expectations for employees working remotely but also address issues such as data security, performance monitoring, and employee well-being. Employers are encouraged to engage with their employees during this process to create policies that are fair and effective.

A well-structured remote work policy should cover aspects such as communication protocols, availability during working hours, and the provision of necessary equipment. Additionally, companies are exploring hybrid models that combine remote and in-office work, allowing for greater flexibility and employee satisfaction.

Mental Health and Well-being Initiatives

As mental health awareness continues to gain prominence, many businesses are implementing initiatives aimed at supporting employee well-being. This includes access to mental health resources, training for line managers on mental health issues, and the establishment of employee assistance programs (EAPs). Employers are beginning to recognise that prioritising mental health can lead to a more productive and engaged workforce.

In recent months, several organisations have rolled out mental health days, allowing employees to take time off specifically for their mental well-being without the stigma often associated with taking sick leave. Additionally, businesses are increasingly investing in wellness programs that include workshops on stress management, mindfulness, and resilience training.

Upcoming Changes to Watch

Gender Pay Gap Reporting

In 2026, new regulations will require companies with over 250 employees to report on their gender pay gap more frequently. This change is aimed at increasing transparency and accountability regarding pay disparities between male and female employees. The regulations will require not only the publication of pay gaps but also action plans detailing how organisations intend to address these disparities.

Businesses should start preparing for these changes by analysing their pay structures and addressing any inequalities. Companies that proactively tackle gender pay gaps can enhance their reputations and improve employee retention rates.

Review of Employment Status Regulations

The government has announced a review of employment status regulations, which will look into the definitions of employee, worker, and self-employed status. This review is significant as it may impact gig economy workers and those in flexible working arrangements. Stakeholders are encouraged to participate in consultations to ensure that the final recommendations reflect the needs of the modern workforce.

The outcome of this review could have far-reaching implications for businesses that rely on flexible staffing arrangements. Employers should stay informed about developments in this area and consider how potential changes might impact their operations.

There has been considerable change in UK employment law, with new legislation and judicial decisions shaping the rights and responsibilities of both employers and employees. The expansion of flexible working rights and significant legislation changes highlight the ongoing evolution of the workplace.

As we move forward, it is crucial for employers to remain informed about these developments and to ensure compliance with the latest legal requirements. By fostering a supportive and inclusive work environment, businesses can not only adhere to the law but also enhance employee satisfaction and productivity.

If you need confidential advice on any of these challenges, or any employment related issues contact Alex Jones at ajones@365employmentlaw.co.uk