Employment law: news in brief – September 2025

Rising costs and Employment Rights Bill threaten jobs and growth

UK businesses have said they're worried about rising costs and new employment regulations, warning that these pressures could threaten jobs, investment, and economic growth. 

According to the latest CBI/Pertemps Employment Trends Survey, 86% of business leaders believe the UK labour market is now a less attractive place to invest compared to five years ago, with 82% expecting this trend to continue.

Labour costs have emerged as the top concern, with 73% of respondents citing them as the biggest threat to competitiveness. 

The Employment Rights Bill is also a major worry, with nearly eight-in-ten (78%) companies fearing it will negatively impact growth, jobs, and employee benefits. This concern has grown sharply from last year, when only 54% were worried. 

UK managers admit to maternity bias

A new study from the University of Bath has revealed that maternity bias is common among UK managers, with some openly admitting they won’t hire pregnant women. 

The study identified three types of employers: 

1. So-called ‘risk-averse,’ who are most resistant to hiring pregnant women and often openly discriminatory
2. ‘Business-first,’ who offer conditional support depending on the role; and 
3. ‘Value-driven’, who prioritise fairness and inclusion. 

Smaller firms with little experience managing maternity leave were found to be the most resistant.

Some managers justified their approach by accusing women of “playing the system” or describing new mothers as “fragile” or inflexible. In contrast, value-driven employers – mainly women and HR managers – treated maternity leave as a matter of fairness and considered the costs manageable within a long-term business strategy.

Rising pressure as sexual harassment laws drive spike in claims

A Freedom of Information request by Irwin Mitchell has revealed a sharp rise in workplace sexual harassment cases reported to Acas since the Worker Protection Act came into force in October 2024.

Key findings include: 

• 7,245 sexual discrimination disputes were reported in 2024 – up 6.2% from 2023
• 878 cases in the last nine months specifically mentioned sexual harassment
• 803 employee calls about sexual harassment were received in Q3 2024 – a 59% increase from Q2; and
• Employer calls rose by 164%, passing 100 for the first time.

Another law firm has revealed that Acas received 5,583 calls in the first half of 2025, up from 4,001 during the same period last year. The rise reflects growing awareness and uncertainty among employers about how to meet the new legal standards.

Nearly half of UK employees experience aggression at work

A recent survey by wellbeing provider Sonder has revealed alarming levels of customer aggression faced by UK workers, with nearly half reporting incidents. The findings, published in the UK Safety Gap Report indicate: 

• 48% of UK employees have experienced customer aggression
• 88% of women and 81% of men reported verbal abuse
• Physical assault was more common among older workers 
• 58% of affected workers received no support from their employer
• Only 36% rated their employer’s safety commitment as “very good;” and
• 14% have taken time off due to mental health or safety concerns.

Flawed apprenticeship system blocks young people from opportunities

New research has revealed that the complex and fragmented apprenticeship system is preventing young people from accessing valuable work opportunities.  

According to reports by the Edge Foundation, more than 40% of UCAS applicants in 2023 expressed an interest in apprenticeships, but only one in four applications were successful.

The current system requires applicants to navigate multiple platforms to find vacancies, including government websites, UCAS, job boards, and employers’ own web pages. Many employers – especially small and medium-sized businesses – don’t know about key government support schemes, with 40% not knowing about the official Find An Apprenticeship service. 

Nearly 70% of SMEs said that they need tailored advice around apprenticeships, and this was more important than offering financial incentives.

Four-in-ten UK workers say they are ‘overlooked’

A recent survey by Perkbox has revealed that a significant portion of UK employees feel undervalued at work, and this has a serious effect on their motivation, morale, and willingness to remain in their current jobs.

Key findings include:

• 42% of UK workers say they feel overlooked or undervalued
• Among those who feel undervalued, 57% report a drop in motivation, 50% experience lower morale, and 47% feel less enthusiastic about their work
• 53% say recognition is the top factor in feeling valued
• 34% of all workers are considering leaving their jobs in the next year; and
• 79% believe a tailored benefits package would help them feel appreciated.

Pay growth falls and redundancies rise

The UK jobs market has continued to stagnate over the summer, according to the latest official data. 

Figures from the Office for National Statistics show that both pay growth and job vacancies have fallen, while redundancies are on the rise. The number of payrolled employees dropped by 142,000 between July 2024 and July 2025, with a further decrease of 8,000 in August. Unemployment has edged up to 4.7% – the highest level in nearly four years.

Vacancies have declined for the 38th consecutive period, falling by 10,000 to 728,000 between June and August. The employment rate for people aged 16 to 64 stands at 75.2%.

Flawed data masks true extent of gender pay gap

A new academic study has found that the UK’s gender pay gap is wider than official figures suggest due to flaws in the way pay data is collected and weighted. 

Researchers from several universities reviewed the Office for National Statistics’ Annual Survey of Hours and Earnings, which is used to calculate the gender pay gap. They discovered that the survey under-represents smaller private sector firms – where pay gaps are often larger – and over-represents larger and public sector employers, where pay is generally higher and more equal between men and women. 

The study revealed that, on average, only 63% of employers responded to the survey between 1997 and 2019, with response rates dropping to just 46% since 2020. Smaller firms and private sector employers were much less likely to respond than larger or public sector organisations. 

By adjusting the weighting to account for this bias, the researchers found that the gender pay gap has been consistently underestimated by about one percentage point over the past two decades.

Calls grow for action on careers service overhaul

MPs are urging the government to accelerate its plans to merge the National Careers Service with Jobcentres, warning that ongoing delays and uncertainty are putting vital support for jobseekers at risk. 

In their report, the Commons Work and Pensions Committee describe the proposed new jobs and careers service as an “exciting opportunity” to transform employment and careers advice. But they say that progress is too slow and risks amounting to little more than a rebranding exercise. It wants the government to take a more ambitious approach. 

Specialist advisers deployed to help people find work

The government has launched a major initiative to boost job support for people on sickness benefits in an attempt to help tens of thousands gain employment. 

As part of the plan, 1,000 specialist jobcentre staff – now known as ‘pathways to work advisers’ – have been redeployed across every Jobcentre in England, Wales, and Scotland. Their goal is to support 65,000 people this financial year, particularly those with mental health conditions, musculoskeletal issues, or high blood pressure, who currently have no requirement to look for work.

These advisers will offer voluntary, tailored support to Universal Credit claimants in the Limited Capability for Work and Work-Related Activity (LCWRA) group. That will include signposting skills training, helping them obtain job placements in sectors like construction and hospitality, and access government-funded programmes such as Connect to Work and WorkWell. 

More Employment Law updates – September 2025

• Sexual harassment: how do you fairly decide what happened in a he said/she said scenario?
• Does menstrual pain amount to a disability?
• Do you need to know if your staff have more than one job?
• Helping parents through neonatal challenges: a guide for employers
• UK government responds to calls for better parental leave policies