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Seven trends shaping UK employment, incentives and pensions in 2025

As these plans evolve, their ripple effects will be felt into 2025 and beyond. Global forces add further pressure. Regulatory developments in the EU, US and beyond will demand UK employers’ attention as they adapt to the shifting landscape.

We’ve identified seven key trends that will define 2025. Employers can use these insights to prioritise their strategies and stay ahead.

1. Employee litigation on the rise—new rights, new risks: The Employment Rights Bill’s sweeping reforms could trigger a surge in claims, potentially on a mass scale.

2. Collective activism surges—unions expand their influence: Trade unions are stepping up their role in the workplace, with their reach and influence expected to grow in the coming years.

3. Pay transparency and equal pay are transforming workplaces—prepare now: The EU’s upcoming pay transparency regulations will reshape how employers report and address equal pay, requiring early action.

4. Labour markets under scrutiny—regulators crack down: Expect tougher enforcement action, as competition regulators worldwide intensify their focus on labour markets.

5. The democratisation of equity—rethinking incentives: Employees are demanding more from incentive plans, and companies must adapt to stay competitive while managing growing compliance burdens.

6. Pension schemes under review—fit for the future: The Pension Schemes Bill and other reforms could mean that changes are required to ensure pension and death benefit arrangements remain fit for purpose.

7. Pension uncertainty persists—ready for change: Ongoing ambiguity in the pensions space leaves employers navigating potential reforms without clear timelines.

This report is designed to equip employers with the insights they need to navigate what’s next. As ever, please feel free to contact any of the authors or your usual Freshfields contact for further information.

 

 

 

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