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Staying ahead of the curve: Key employer duties in 2025

Published Aug 29, 2025

As we move through the second half of 2025, UK employers have been, and continue to, navigate a busy year of HR and safety compliance. From new employee rights to major regulatory reforms, the pace of change is accelerating, and the cost of falling behind is significant.

Here we summarise three key changes from the year so far and highlight two important upcoming developments. These changes illustrate the breadth of compliance responsibilities facing employers and the importance of proactively reviewing policies, training, and risk assessments. For organisations needing guidance, SSG’s Consultancy and ADVISOR services provide tailored advice and support – find out more here.

Neonatal care leave and pay – a landmark for working parents

Since 6 April 2025, employees whose babies require neonatal care within the first 28 days of birth and have a continuous stay in hospital of seven days or longer, are now entitled to up to 12 weeks of statutory Neonatal Care Leave. This is a landmark policy, offering crucial support for parents during some of the most stressful weeks of their lives.

For employers, HR systems, payroll software and line manager guidance must already reflect these entitlements. Failure to pay correctly risks not only tribunal claims but reputational damage. This policy builds on a wider legislative drive seen in recent years - from
Shared Parental Leave to enhanced flexible working rights.

National minimum and living wage - keeping pay policies up to date

In April 2025, new statutory pay rates came into effect. The National Living Wage (NLW) was uplifted once again, alongside adjustments to Statutory Sick Pay (SSP), which now stands at £118.75 per week.

For payroll teams, these updates interact directly with neonatal leave entitlements, the Employment Rights Bill, and other statutory rights. Errors can quickly snowball, creating unlawful deduction claims and reputational risks. In 2024, HMRC named and shamed over 500 employers for failing to pay the minimum wage, with arrears totaling nearly £16 million.

Failure to Prevent Fraud law - preparing for a new compliance duty

On 1 September 2025, the government’s long-anticipated Failure to Prevent Fraud law will commence, creating a new corporate offence where organisations can be held liable if they fail to prevent fraud committed by employees or agents for their benefit. This forms part of the wider Economic Crime and Corporate Transparency agenda.

In practice, this means large organisations must review their fraud risk assessments, staff training, reporting channels, and internal controls – as highlighted by the CPS.

Employers are strongly advised to prepare now.

At SSG we have highlighted the importance of readiness –
read our update on the Failure to Prevent Fraud Law which explores this more in detail.

Fire safety - strengthening the regulatory framework

In March 2025, amendments were made to Approved Document B, which sets out guidance on meeting the requirements of Building Regulations in England. Among the most notable changes is the requirement for sprinklers in all new care homes, alongside tightened standards for fire resistance classifications and clearer handover duties for fire safety information at completion.

This is the latest in a series of reforms following Grenfell, including the Fire Safety Act 2021, the Building Safety Act 2022, and the creation of the Building Safety Regulator in 2023.

Furniture and furnishings (fire) regulations - a short compliance window

Coming into force on 30 October 2025, the Furniture and Furnishings Regulations 2025 modernise flammability requirements for upholstered furniture and furnishings.

The compliance window is short, raising implications for manufacturers, retailers, and both commercial and domestic accommodation providers. Such organisations have only a few months to audit supply chains, test products, and update records in order to ensure items meet the new standards from October 30th.

The bigger picture - from HR rights to safety standards, and beyond

When viewed together, these five developments illustrate the wide scope of responsibilities facing UK employers in 2025 - from HR entitlements and pay rates, to fire safety obligations and fraud prevention.

Each reform strengthens protections for people, and proactive employers who update systems, policies and training will avoid penalties whilst leading safer, fairer workplaces.

Looking for guidance and support? We can provide tailored consultancy and ongoing compliance advice through our ADVISOR membership schemes and range of consultancy services. Get in touch with one of our team today on 01752 201616 or info@ssg.co.uk to discuss your requirements.