HR Update - April 2025

Spring is here, and so are some big changes in the world of employment law. From pay rises to new legal rulings, April has brought a flurry of updates businesses and HR professionals can’t afford to miss. It’s time to refresh your policies and stay one step ahead. Read on for more of the latest developments, because when it comes to employment law, it’s always better to be in the know than caught out in the rain!

Employment Updates:

April 2025 has brought key changes to UK employment law, with significant implications for HR professionals and businesses. These updates address statutory pay, legal rulings, and employee rights, all requiring timely adjustments to ensure compliance.

Statutory Pay Increases

From 6 April 2025, statutory pay rates have increased: the National Living Wage for those over 21 is now £12.21 per hour, and statutory sick pay (SSP) rises to £118.75 per week. Statutory parental pay also increases to £187.18 per week. These adjustments will affect payroll budgeting and require businesses to update compensation policies.

Compensation Limits and Redundancy Pay

Several compensation limits have been increased: the maximum compensatory award for unfair dismissal rises to £118,223, and the weekly pay limit for redundancy calculations is now £719. Employers should adjust their redundancy policies accordingly.

Neonatal Care Leave

The Neonatal Care (Leave and Pay) Act 2023, effective from 6 April 2025, provides employees with the right to paid leave if their baby requires neonatal care. HR departments should update their policies to accommodate this new entitlement.

 

Legal Spotlight: Key ER cases you need to know

Miss C Friend v MHS Homes Ltd

Friend was employed at MHS Homes LTD. She suffered a number of health conditions with the most relevant being a head injury sustained after an attack, resulting in seizures and additional time being required to compete tasks. MHS Homes LTD were aware of her disabilities and the adjustments required.

Initially, MHS Homes LTD did the correct thing by referring Friend to their EAP and occupational health when she raised concerns about being able to cope at work. In the occupational health report, they suggested the business provide Friend with a seat with her back away from on the wall. The business did not grant this despite others being given permanent desk solutions.

Isolation of Friend grew further when she overheard her manager making comments about how people who attempted suicide are selfish. This came shortly after Friend needed time off work for her sister attempting suicide. In addition to this, Friend overheard a separate conversation where her manager said she wanted to let Friend go due to her being lazy.

Due to this, Friend had a period of sick leave from work. When she returned, she had a seizure at work requiring emergency hospital treatment. After this, her manager referred to her as “Regan” from the film “The Exorcist”. These comments also translated into messages and images of the film being sent to Friend.

The tribunal ruled in Friend’s favour. 

The case highlights that harassment can take place in many forms. What may be perceived as a joke to the team may be offensive to an individual and amount to harassment. It is a message that is often heard however the cost of this error is apparent in this case. This case links to the start of the claimant's employment and the failures and comments made by the manager which in all amounted to harassment. 

 

Mr C A Wint v Walsall Metropolitan Borough Council

Mr Wint was in conversation with a colleague, who following a rota error stated that she was so tired “I am like a voodoo doll to stick needles in my eyes.”. Mr Wint stated that the colleague actually said she would send Mr Wint a voodoo doll with pins in it.

Due to Mr Wint’s background as a Black African Carribean Christian, he found this comment grossly offensive linking it with his association of black Jamaican and African Culture.

The tribunal disagreed with Mr Wint that the comment amounted to Harassment however it did explore Voodooism as a protected belief. It concluded that voodooism qualifies as a protected belief under the Equality Act 2010. 

Employers should be aware that the Equality Act 2010 extends protections beyond traditional religions to include a wide range of religious and philosophical beliefs. This includes beliefs without a central text or universally agreed teachings, provided they meet the criteria established by the Act. Employers are encouraged to consider these factors in their diversity, equity, and inclusion (DEI) training and policies.

 

BNP Paribas

Mr Foster was employed as a solicitor. Within his tenure, he repeatedly used derogatory names to refer to colleagues. These included expletives, referring to people as autistic when they were not and idiots. One colleague, who had a traditional Chinese name, was referred to as “Hu She”.

The comments were raised as part of a staff members exit interview and a disciplinary was scheduled for Mr Foster, though he left the business before this was held.

His defence for the names within the court was that he treated everyone equally. He gave everyone a name and was not singling out the Chinese colleague.

Ultimately, the judge ruled in favour of the employee. It found that a defence of treating everyone negligently was not in line with the expectations of management or any Equality and Diversity expectations. 

This case highlights that an employee treating everyone the “same” is not a good enough reason to allow them to act inappropriately towards other employees. Nipping behaviour like this in the bud and challenging it immediately is the only way to effectively mitigate fall out between employees and promote equality and diversity within the business subsequently saving the business from future claims. 

 

HR Hot Takes:  UK Supreme Court Ruling on Gender: What is means for HR and Business Leaders

In a landmark judgment delivered this month, the UK Supreme Court ruled that the word “sex” in the Equality Act 2010 refers specifically to biological sex, not gender identity. This decision, prompted by a challenge over single-sex spaces, clarifies that individuals who hold a Gender Recognition Certificate (GRC) may not be entitled to access certain single-sex services or spaces designated for biological women.

For HR professionals and business leaders, this ruling introduces a significant shift in how gender, sex, and inclusion are understood and applied in workplace policy. While the decision does not alter protections against discrimination for transgender individuals, who remain safeguarded under the characteristic of “gender reassignment”, it does reinforce the legal right to maintain single-sex services or provisions where there is a proportionate justification.

The implications for employers are both legal and cultural. Policies around changing rooms, toilets, and other gender-specific facilities may now need to be reviewed to ensure alignment with the clarified legal definitions. HR teams should take care to update internal documentation and guidance, ensuring that language reflects the ruling while continuing to respect the dignity of all employees.

This is a sensitive and potentially divisive topic, making clear communication vital. Businesses should proactively reinforce their values of respect, safety, and inclusion, while explaining how policy decisions are guided by legal obligations. Where facilities are adjusted or clarified, the rationale should be communicated transparently to avoid confusion or conflict.

Equally important is maintaining a supportive environment for transgender staff. The ruling does not permit discrimination or exclusion based on gender identity. It does, however, ask employers to navigate a more finely balanced legal environment ensuring that rights based on biological sex are not overlooked, while maintaining protections for those transitioning or identifying differently.

In practice, this ruling means HR leaders must now operate with greater precision. Policies once designed for inclusivity alone must now also account for legal clarity on sex-based rights. Training, documentation, and even internal dialogue may need careful recalibration.

As public discourse continues to evolve, businesses must remain focused on fostering respectful workplaces rooted in legal compliance, fairness, and empathy for all.

 

HR Compass: Strategic Workforce Planning in a tight labour market

As UK businesses face mounting cost pressures, from rising wages to inflation and new statutory entitlements, workforce planning has become a strategic priority. At the same time, the labour market remains tight, with talent shortages continuing to impact critical sectors. For HR professionals, the challenge lies in balancing operational resilience with financial sustainability.

April 2025 brought statutory increases, including a rise in the National Living Wage and expanded leave entitlements such as neonatal care. These changes reflect a shift towards greater worker protections but also add significant cost to payrolls, particularly in sectors reliant on high-volume, lower-wage roles. Simply absorbing these costs is not viable for many businesses, nor is reducing headcount without risking delivery capacity. Strategic workforce planning is now essential, not just to control costs, but to sustain long-term business performance.

One key shift is moving from reactive recruitment to forward-looking skills planning. Rather than filling vacancies as they arise, HR leaders should be working closely with finance and operations to forecast future skills needs, identify critical roles, and assess where automation or redesign might reduce pressure. This approach helps prioritise where to invest in people, and where efficiency can be gained without compromising service.

Internal mobility also deserves renewed focus. In a constrained hiring market, developing existing employees into hard-to-fill roles can be more cost-effective and culturally aligned than external recruitment. HR should lead initiatives that make career progression and reskilling more accessible, supported by data on current capabilities and future demand.

Alternative workforce models can also help relieve cost pressures. Blended teams, incorporating part-time, temporary workers, or project-based roles, offer flexibility without long-term payroll risk. However, this requires clear governance and a strong cultural foundation to avoid fragmentation.

To make these decisions effectively, workforce planning must be grounded in robust data. Metrics such as time to productivity, turnover risk, and skills coverage provide essential insight. Strategy, not instinct, must guide decisions in a market where every hire matters.

Ultimately, effective workforce planning is not just about controlling labour costs, it’s about deploying talent where it delivers the greatest value. In today’s economic climate, HR leaders have the opportunity to shape more agile, resilient organisations by planning not just for headcount, but for capability.