UK employment law July 2025: Legal changes the people profession need to know

Review of all forms of parental leave  

The misalignment between the current parental leave system and the demands on parents’ working lives is becoming more and more evident. With the government launching a review on these matters in July, now is the time to consider whether, as an employer, you have evidence on: 

• The fairness of the parental leave system. 
• Whether the costs to business and parents are working. 
• Whether current family policies suitably support social progress. 

It is notable that this is not a one-system review. This call for evidence is looking across maternity, paternity, adoption, shared parental, parental bereavement, unpaid parental leave, neonatal care leave and pay, the Maternity Allowance, and a new employee right (under development) to bereaved partner’s paternity leave.   

Seeking suitable support for parents in their working lives is an area that the CIPD lobbies on behalf of our members. We submitted evidence to a prior parental and shared parental leave consultation, where one notable recommendation is that statutory paternity leave and pay should be extended.

The CIPD propose that this extension could be up to six weeks of paid paternity leave, at or near the full rate of pay. The aim of this proposed change would allow a balance in caring responsibilities, aid retention and provide financial support to working parents.    

If you are looking to respond to the parental leave call for evidence, please note that the submission deadline is 26 August 2025. 

Employment Rights Bill latest 

When your CEO is asking what is happening with the Employment Rights Bill, rest assured that we are keeping on top of this for you.

As outlined by our public policy team at the start of this month, the bill is currently going through the final stages of readings and amendments before the law is agreed (Royal Assent) later this year.

At the time of writing, the bill has completed the report stage. Most of the bill is going through unchanged but the Lords have agreed a few headline-grabbing amendments, such as reducing the qualifying period for unfair dismissal protection from 2 years to 6 months, a change from the government’s original proposal of protection from day one of employment. Although these amendments have been agreed in the Lords, the bill will return to the Commons in September for its third reading, where the amendments will be discussed between both Houses to decide whether they will be retained or overturned in what is known as 'ping pong'.

Use the tracker to see what is in the draft bill right now and to consult the resources that can help you prepare in advance. In addition, you can scroll down to share the key dates of the Employment Rights Bill roadmap, that was proposed by government at the start of July.

Tribunals 

Employment status – not genuine substitution clause  

This July, employment status was once again tested in BCA Logistics Ltd v Brian Parker and Others [2025]. Here, the EAT upheld a tribunal decision that drivers for BCA Logistics (BCAL) were workers as the substitution clause was not genuine.   

People practitioners may wish to note some of the reasons the original tribunal issued for finding the substitution clause to be not genuine, for example: 

• As the business had no process in place to deal with the practical realities (such as insurance, use of company equipment, or how customer data would be protected) that using a substitute would bring it was hard for the tribunal to view the substitution clause as genuine   
• As there was no guidance or training offered to substitutes (if they were to be used), or no guidance or training for the drivers on how to engage a substitute, it was hard to view the clause as genuine. 
• As no driver had ever used a substitute within 25 years, there was no precedent for the clause being used  

People professionals who engage self-employer persons and contractors may wish to review their contracts alongside the day to day realities of the work being undertaken by such persons. The law page on employment status can support practitioners in making an assessment of this. 

Rejected flexible working request – injury to feelings award  

An injury to feelings award of nearly £30,000 in Ms G Platukyte v Secretary of State for Justice [2024] may also be of interest to practitioners. 

Here, the claimant previously had flexible working arrangements which allowed her to manage debilitating menstrual symptoms. However, this arrangement was later withdrawn, and the claimant was asked to attend the office, or (if the symptoms were too acute) make day-to-day requests to her manager, or take sick leave. However, these day-to-day requests to work from home were inconsistently granted. Over a duration of 17 months a series of written warnings were issued against the claimant.  

Practitioners should note that the judge made the award based on the defendant’s actions toward the claimant. The judge concluded “The Claimant believed that her career was under threat, both in terms of a barrier to any advancement and in terms of actually losing her job. She came into the office when she was feeling very unwell.”  

Practitioners can see guidance on flexible working arrangements for further support.

Employment law in the summer holidays 

The types of employment law issues that occur over the summer months are often thematic. The following resources (legal and non-legal) may offer support on these common questions:  

• Holidays – Use the resources to answer questions such as 'How much paid holiday are workers entitled to?' 'What is the annual leave allowance for part time workers?' Or, the ever-curious question of ‘Are bank holidays mandatory paid days?’  
• Recruitment – Many businesses prepare ahead for a burst of interest in job roles come September. Here we provide information on how to attract the right candidates, while ensuring that the process is legally compliant. 
• Finally, if you are looking to conduct a mid-year performance check in, or perhaps undertaking some workforce planning this summer, start with the guide on performance. The guide points to a range of really useful tools including checklists and templates for appraisals and setting SMART objectives for the next quarter.