Scottish employment law 2025 will see significant transformations affecting both employers and employees. These changes include pay changes, new laws, and improved worker protections, all aiming for fairer workplaces across Scotland.
National Minimum Wage and National Living Wage Increases
Starting in April 2025, the UK Government will raise the National Minimum Wage (NMW) and National Living Wage (NLW) by a significant amount. The NLW, for workers aged 23 and older, will jump by 6.7% from £11.44 to £12.21 per hour. This change means full-time workers will earn about £1,400 more each year.
Younger workers will also see higher pay, with wages for 18 to 20-year-olds going up from £8.60 to £10.00 per hour. This is the biggest increase ever and gives eligible young workers approximately £2,500 more income annually. These changes will help roughly 200,000 workers in Scotland. These wage adjustments are a key aspect of Scottish employment law 2025, aiming to improve fairness in pay structures.
Employer National Insurance Contributions
Effective April 2025, employer National Insurance Contributions (NICs) will rise from 13.8% to 15%. The Secondary Threshold, which is the salary level at which employers start paying NICs for each worker, will drop from £9,100 to £5,000 per year until April 6, 2028. Then it will adjust according to the Consumer Price Index (CPI).
Neonatal Care Act 2023
In April 2025, the Neonatal Care (Leave and Pay) Act 2023 will take effect. It gives new parents extra leave if their baby needs medical or palliative care in the first 28 days after birth. This leave may start right away.
It should be noted that to qualify for statutory pay, workers need 26 weeks of continuous work and must meet minimum earning criteria. This rule helps families who may find themselves in tough times. It enables parents to focus on their child’s health without financial strain.
Provisions like these underscore the human-centric focus of Scottish employment law 2025, ensuring greater support for working families.
Employment Rights Bill
The Employment Rights Bill, introduced by the Labour government, encompasses 28 reforms intended to enhance worker protections and modernize employment practices. Key proposals include:
- Prohibition of Zero-Hour Contracts: The bill aims to give workers more steady and safe jobs. It plans to stop zero-hour contracts, which impact about one million workers.
- Abolition of ‘Fire and Rehire’ Practices: The bill intends to stop firing workers just to hire them again with worse conditions, supporting fair treatment at work.
- Day-One Employment Rights: From the start of their job, workers get rights like safety from being fired unfairly and the ability to take time off for family, such as parental leave. This provides job security and a better balance between work and personal life.
These proposed changes under Scottish employment law 2025 highlight a commitment to stronger worker rights and modernized workplace practices.
Worker Protection Act 2023
The Worker Protection Act, which received Royal Assent in October 2023, took effect on October 26, 2024. This legislation amended the Equality Act 2010 to strengthen protections against workplace harassment, placing a duty on employers to take all reasonable steps to prevent sexual harassment of their employees. Employers in Scotland must ensure compliance with this act by implementing appropriate policies and training to foster a safe working environment.
Employment Act 2023
Effective October 1, 2024, the Employment (Allocation of Tips) Act 2023 mandates that all tips, gratuities, and service charges paid by customers are allocated entirely to workers. This legislation aims to ensure fairness and transparency in the distribution of tips, prohibiting employers from withholding any portion. Employers must establish clear policies to comply with this requirement, ensuring that all discretionary payments from customers are distributed equitably among staff.
Implications for Employers and Employees in Scotland
Upcoming changes in employment laws mean employers in Scotland need to actively check and review their policies, contracts, and payroll systems to follow the law. This involves planning for higher pay and NIC costs, updating leave policies, and taking steps to stop workplace harassment. Workers should learn about their new rights and benefits, making sure they know enough to speak up for fair treatment at work.
In conclusion, 2025 marks a big change for Scottish job laws, with important new rules to support fairness, safety, and well-being at work.
