This year, UK businesses face significant legal changes that could potentially impact operations, costs, and compliance requirements. Understanding these changes is crucial for maintaining compliance and planning effectively for the year ahead.
In this article, we plan to outline what these changes may look like, what businesses can do to prepare, and how legal advisors can help.
Key Employment Law Changes
2025 brings substantial changes to employment law that will affect employers and employees.
From April 2025, employer National Insurance contributions will increase from 13.8% to 15%. Alongside this, the National Living Wage rises to £11.44 per hour for workers aged 21 and over, while workers aged 18-20 will receive £10.00 per hour, representing the largest wage hike in recent history for younger workers.
This comes alongside increases to statutory pay rates such as:
- Maternity Pay
- Paternity Pay
- Shared Parental Pay
- Adoption Pay
- Parental Bereavement Pay
Rates will increase from £184.03 to £187.18 a week.
Regarding Statutory Sick Pay, rates will increase from £116.75 to £118.75 per week.
These legal changes will have significant financial implications for businesses. Organisations need to:
- Review and adjust budgets for increased employment costs
- Plan for higher wage bills
- Assess compliance requirements and associated costs
- Develop implementation strategies
Corporate Transparency and Company Law
The Economic Crime and Corporate Transparency Act, passed in 2023, will introduce pivotal changes to business operations. From Autumn 2025, new directors and People with Significant Control (PSCs) must complete identity verification with Companies House. Existing directors and PSCs will have a 12-month transition period to comply, while mandatory verification for all Companies House filings will be implemented in 2026.
Privacy protection regulations will also see enhancement, with new measures allowing the suppression of personal information from historical documents. This includes residential addresses, birth dates, and other sensitive information, reflecting a growing emphasis on data protection in corporate documentation.
Immigration Law Changes
Immigration and business immigration will also be affected by the landslide of legal changes that have and will come in 2025.
December 2024’s policy changes prohibit sponsors from passing certain costs to skilled workers, including Sponsor Licence and Certificate of Sponsorship fees. This means that businesses will potentially have to adjust their budgets to account for such changes.
The new Electronic Travel Authorisation (ETA) scheme became mandatory for non-European nationals from January 8, 2025, with European nationals requiring ETAs from April 2, 2025. This universal requirement means that by April 2025, all travellers to the United Kingdom, except British and Irish citizens, will need either an ETA or an eVisa.
Digital transformation continues with the transition to eVisas, replacing physical documents like biometric residence permits (BRPs). While expired documents remain valid for international travel until March 31, 2025, businesses must ensure their sponsored workers create eVisa accounts for accessing and updating their immigration status online.
GDPR and Data Protection
Data protection requirements continue to evolve, with enhanced focus on secure storage and international transfers.
Businesses must ensure their privacy policies remain transparent and up-to-date, while staff training becomes increasingly important for maintaining compliance. Regular audits and updates to data protection measures will be essential throughout 2025.
Preparing Your Business for 2025
To prepare for these changes, businesses should:
- Review current policies and procedures
- Update employee handbooks and contracts
- Train managers on new requirements
- Plan for increased costs
- Seek professional advice where needed
Tann Law’s Support Package
Businesses have a lot to consider over 2025 – that’s why we’d like to offer our help.
Tann Law is offering a special Sponsor License package. Our annual sponsor licence support package is £2400, and we’re currently offering a special promotion: Sign up for a two-year commitment and receive a sponsor licence mock audit for just £1000 (normally £2500).
This comprehensive package includes:
- Regular compliance checks
- Updates on regulatory changes
- Support with sponsor management
- Discounted mock audit
- Ongoing expert guidance
Get in contact today to learn more about this offer and how Tann Law can help you.
How Can Tann Law Can Help?
Our experienced team provides comprehensive support for businesses adapting to these changes. We offer:
- Expert guidance on new regulations
- Policy review and updates
- Compliance support
- Strategic planning assistance
- Ongoing legal advice
The legal changes coming in 2025 require careful planning and preparation. Early action will help ensure compliance and minimise disruption to your business operations.
Contact Tann Law today to discuss how we can help you prepare for these changes and take advantage of our special Sponsor License package.
