Employment law: news in brief – October 2025

Matthew Taylor appointed Chair of Fair Work Agency

Matthew Taylor CBE has been named the inaugural Chair of the UK’s newly established Fair Work Agency, set to launch in April 2026. 

Taylor, known for leading the influential 2016 Taylor Review of Modern Working Practices, brings extensive experience from roles at the RSA, NHS Confederation, and as interim Director of Labour Market Enforcement.

The agency will have new powers to address issues such as withheld holiday pay and minimum wage violations, supporting the government’s broader “Make Work Pay” initiative to raise living standards and promote fair business practices.

Thousands still owed tribunal payments despite enforcement scheme

A Freedom of Information request by the BBC and the Bureau of Investigative Journalism revealed that the Employment Tribunal Penalty Enforcement and Naming Scheme, launched in 2016, has failed to deliver results for the majority of claimants.

Although over 7,000 individuals have used the scheme to pursue unpaid awards totalling more than £46 million, only 109 penalties have been paid out of more than 4,800 issued. No employers have been publicly named, despite the scheme allowing for online publication of non-compliant companies.

Insolvency remains the most common reason for non-payment. While some workers may recover limited funds through government schemes for redundancy or unpaid wages, most tribunal claims – such as those involving unfair dismissal or discrimination – fall outside these provisions. 

Majority of UK workers feel overworked

More than half of British employees report feeling overworked in their current roles, according to new research published by PR Agency Jukebox. The findings highlight growing concerns around workload pressures and work-life balance across UK workplaces.

Key findings:

• 44% often eat lunch while working because they feel too busy to take a proper break
• 41% say they struggle to stay active due to the pressures of work and daily life
• 47% find it hard to reach 10,000 steps a day because of the demands of their current job
• 52% frequently check work emails, messages, or take calls outside of their working hours
• 38% feel that their workload affects the amount of quality time they can spend with their family.

New law limits NDAs for victims of crime

From Wednesday 1 October 2025, victims of crime in England and Wales are no longer bound by non-disclosure agreements (NDAs) that prevent them from sharing information about criminal conduct. The change comes under section 17 of the Victims and Prisoners Act 2024, which renders void any NDA clause that restricts disclosures to specified individuals and organisations.

Victims can now speak to the police, legal professionals, regulators, victim support services, and close family members about the crime, even if they have signed an NDA. 

The Ministry of Justice has issued guidance for both individuals and businesses outlining what disclosures are permitted, what remains restricted, and how the new rules apply to NDAs signed after the law’s commencement.

Workplace stigma still blocks equal parenting

Half of working fathers in the UK feel nervous about asking for time off to care for their children, according to new research from Working Families. The study, which surveyed 5,000 dads, reveals that outdated attitudes and workplace stigma continue to hinder progress toward equal parenting.

Despite 74% of fathers expressing a desire to share caregiving responsibilities equally, many fear negative consequences for their careers: 

• 50% of working fathers say they feel nervous asking for any flexibility or time off for childcare responsibilities
• Over 33% said they had taken less paternity leave than they wanted
• 6% had taken no parental leave at all. 

Common concerns include being perceived as less committed, risking career progression, and facing questions about why their partner couldn’t cover childcare instead.

UK to roll out new digital ID scheme

The UK government has confirmed plans to roll out a new digital identity scheme across the country, aiming to simplify and secure access to public and private services. 

The scheme will allow individuals to verify their identity online using trusted providers, with the option to use the GOV.UK One Login system. A new trust mark will help users identify secure services, and a statutory register of approved providers will be maintained by the government.

Job advisers to be placed in GP surgeries 

The UK government has announced a £167.2 million expansion of the Connect to Work programme, which will see job advisers embedded in GP surgeries across the country. 

By placing employment specialists directly within primary care settings, the scheme seeks to reduce economic inactivity and ease pressure on the NHS. Patients will be offered personalised guidance on managing health conditions while exploring realistic pathways back into work.

Cost of long-term sickness for UK employers 

UK businesses are facing an average annual cost of £20,735 per employee due to long-term sickness, according to new data from MetLife UK. 

The report also shows that short-term sickness costs employers £13,800 per employee per year. The figures highlight the growing financial impact of prolonged employee absence on organisations.

Public sector pay growth outpaces private sector

New figures from the Office for National Statistics reveal that public sector pay is rising faster than private sector wages, intensifying pressure on the UK’s public finances. Annual regular earnings grew by 6% in the public sector, compared to 4.4% in the private sector.

The increase is partly attributed to early salary adjustments in 2025 and substantial pay deals for professions such as train drivers and teachers. Analysts also noted that the slowdown in private sector pay has been sharper than expected, with bonuses failing to offset the gap.

UK workers demand flexibility as hybrid norms evolve

The 2025 State of Hybrid Work report from Owl Labs reveals a major shift in workplace expectations, with UK employees increasingly prioritising flexibility over traditional working patterns. Based on a survey of 2,000 full-time workers, the report shows that 93% would take action if remote or hybrid working were no longer permitted.

Nearly half of respondents (44%) said they would reject any job that didn’t offer flexible hours, and 73% view a four-day week as a key benefit. 

Younger generations are leading the charge, with 77% of Millennials and 72% of Gen Z supporting the shorter work week. On average, UK workers are willing to give up 8% of their salary to secure this arrangement.

More employment law updates – October 2025

• Will labour reintroduce Employment Tribunal fees?
• Does your onboarding process discriminate against neurodivergent employees?
• Reasonable adjustments and neurodiversity: how one employer got it right
• Is it fair to dismiss an employee involved in an altercation that took place outside of work?
• Night work, rest periods and multiple employers