Employment law: news in brief – November 2025

Employers must use digital HR1 form to report on redundancies

From 1 December 2025, employers proposing to make 20 or more people redundant from the same establishment must use the digital HR1 form to notify the Secretary of State. Email submissions won’t be accepted from this date. 

Please note: 

• The form doesn't autosave
• It takes around 40 minutes to complete; and
• It must be submitted in one sitting.

House of Lords urges action on remote working

According to the Office for National Statistics, the UK has the highest number of people working from home in the world, with 13% of adults working fully remotely and 26% having hybrid arrangements. 

Against this backdrop, the House of Lords Committee on Home-based Working has published its report, which has concluded that these types of arrangements have become the “new normal” for many. 

The Lords is concerned that access to remote and hybrid working is unequal across sectors, regions and demographics, and this will deepen workplace inequality. It has called on the government to coordinate policies across departments, allocate ministerial responsibility, and gather detailed data on the long-term economic and social impacts.

Labour Market Enforcement report reveals patchy progress

The Director of Labour Market Enforcement has reported mixed progress on its 2023/24 and 2024/25 strategies. Funding freezes for the Employment Agency Standards Inspectorate and cuts to the Gangmasters and Labour Abuse Authority have hindered new initiatives. 

However, HMRC’s minimum wage team has achieved clear progress since adopting its Geographical Compliance Approach, which uses location or sectors to target those organisations who may be at risk of paying below the national living or minimum wage.

IFS warns of rising mental health challenges among older women

Employers are being urged to address the health needs of older workers, after new research revealed a sharp rise in poor mental health among women approaching retirement age. 

The Institute for Fiscal Studies (IFS) found that over 20% of women in their late 50s and early 60s now show signs of depression, up from 15% a decade ago. Among the poorest third, the figure jumps to 39%, compared with 30% in the mid-2010s.

Women in the lowest wealth group are much more likely to have problems with their mobility (54% vs 20% in the wealthiest third) making it more difficult for them to remain in work.

UK unemployment climbs to 5%

UK unemployment rose to 5% in the three months to September – its highest level since early 2021 – according to official figures from the Office for National Statistics (ONS). 

The increase, which exceeded analysts’ forecasts of 4.9%, signals a weakening labour market ahead of the Budget on 26 November.

Average wage growth slowed to 4.6% in the third quarter, down from 4.7% in the previous period. Public sector pay rose by 6.6%, outpacing the private sector’s 4.2% growth. Economists warn these gains may not last due to budget constraints. 

Payroll data showed 180,000 fewer people employed compared to last year, while nearly 1.7 million are claiming unemployment benefits.

Government launches review of employment rights for unpaid carers

The Department for Business and Trade (DBT) has published a new review into employment rights for unpaid carers.

The review will look at what rights are currently available, how they are working, and whether any additional interventions can be made to support carers. It is focussing on those changes that have ‘low or no cost to business and the exchequer.’

Disabled workers face £4,000 annual pay gap

Disabled employees in the UK earn on average £2.24 less per hour than non-disabled colleagues, leaving them more than £4,000 worse off each year, according to new analysis by the Trades Union Congress (TUC). 

The figures reveal a 15.5% disability pay gap, which the union says means disabled workers effectively “stop earning” for the rest of the year from 12 November. 

The gap is even wider for disabled women, who earn 27.3% less than non-disabled men. 

The TUC also highlighted that disabled workers are more likely to face insecure employment, with 4.3% on zero-hours contracts compared to 3.3% of non-disabled workers.

Alongside lower pay, disabled people face higher living costs, estimated at an extra £1,224 per month for essentials such as heating, home adaptations and mobility aids. Unemployment among disabled people is more than double that of non-disabled workers, reaching its highest level since before the pandemic.

Report urges employers to remove barriers for neurodiverse workers

A new report wants UK employers to take urgent action to remove barriers faced by neurodiverse people in the workplace. 

The All-Party Parliamentary Group (APPG) on Modernising Employment highlights that around 20% of people in the UK are neurodivergent, yet more than one in five are not in employment.

The report reveals that although 55% of employers believe their organisation is neuroinclusive, 30% of neurodivergent workers have not disclosed their condition to managers because they're worried this will adversely impact their career. 

The report identifies several barriers which prevent neurodiverse people from obtaining and staying in employment including: 

• Outdated recruitment practices
• Lack of training for managers; and
• Misconceptions about reasonable adjustments. 

The report busts the myth that adjustments are costly to implement. It says that simple measures such as flexible working hours, providing quiet spaces, and clear communication can make all the difference. 

NEET numbers remain high 

Almost one million young people in the UK are still not in education, employment or training (NEET), according to the latest figures from the Office for National Statistics. 

Between July and September, the number of 16 to 24-year-olds classified as NEET fell slightly to 946,000 from 948,000 in the previous quarter, but it has remained above 900,000 since early 2024. Earlier this year, the figure hit an 11-year high of 987,000.

Skills fluidity set to drive workforce transformation

According to a survey of 2,000 professionals, 51% believe “skills fluidity” defined as the ability to adapt and pivot to emerging demands, will shape recruitment practices for decades to come.

The report highlights that while technology and flexible working defined the past forty years, the future will prioritise adaptability. 

Employers already face challenges, with 48% struggling to source essential skills, and professionals increasingly reskilling to meet demand in areas such as sustainable finance. 

Only 31% of UK workers receive employer-funded training, raising concerns that people aren’t able to respond to a skills-fluid future.

More employment law updates – November 2025

• Is a dismissal likely to be unfair if the decision maker relies on a script prepared by someone else?
• Should you adjust your disciplinary procedure for autistic employees?
• 1 December 2025: Acas Early Conciliation extended to up to 12 weeks
• Trade union consultations: what do the government’s proposals mean for employers?
• The UK’s first workplace standard to prevent suicides and support those affected by it
• Non-disclosure agreements and victims of crime: is more change on the way?