Curious about how Employment Practices Liability Insurance (EPLI) can safeguard your construction business as UK employment law is updated? Read more here
As 2025 approaches, UK businesses are preparing for significant employment law updates designed to enhance workers’ rights. While these changes are a step forward for employee protections, they could also lead to increased risks of disputes and legal challenges for employers.
Now more than ever, Employment Practices Liability Insurance (EPLI) is essential for safeguarding businesses against the financial and reputational costs of employment-related claims.
Key employment law changes in 2025
The upcoming legal reforms will vary by sector, but here are the highlights that all employers should note:
Strengthened protections for workers
New legislation will make it easier for employees to claim unfair dismissal, report discrimination, or act as whistle-blowers. Reduced qualifying periods for some rights mean more employees will be eligible to file claims.
Expanded rights to flexible working
Employees will gain the right to request flexible working arrangements from their first day of employment. Employers must manage these requests with transparency and fairness to avoid potential claims.
Enhanced family leave entitlements
Improved leave allowances for parents and caregivers aim to support work-life balance but could result in legal disputes if businesses fail to implement these policies effectively.
Increased penalties for non-compliance
Employers who fall short of meeting these standards could face heavier fines, more audits, and a rise in tribunal cases that are both costly and damaging to reputation.
How EPLI protects your business
With these legal changes, the likelihood of claims—founded or otherwise—is set to rise. EPLI shields businesses from the financial strain of defending against such claims, covering legal fees and potential settlements. Key areas of protection include:
- Unfair dismissal claims
- Discrimination or harassment allegations
- Breach of contract disputes
- Whistle-blower or retaliation claims
Without EPLI, even a single tribunal case could result in significant costs, especially as cases grow more frequent and complex under the new laws.
Take action now
The 2025 employment law changes are an opportunity for businesses to strengthen their practices and demonstrate commitment to fair treatment. By preparing in advance and securing EPLI, you can mitigate risks and focus on your business growth.
