New legal changes for businesses: What to know and prepare for

Running a business is a lot like trying to hit a moving target—there's always something new to keep up with, especially when it comes to laws and regulations. Whether it's changes in employment law, data protection rules, or consumer rights, staying updated is essential. These changes are introduced to reflect shifts in society, advances in technology, and a push for fairness across the board.

For UK businesses, keeping up with these updates is essential to staying compliant and being prepared ahead of time. Knowing what is ahead, avoids the stress of last-minute scrambles. Staying proactive helps you dodge surprises, keeps your business running smoothly, and gives you the confidence to face new regulations head-on. A little preparation now can save a lot of trouble later, ensuring your business continues to grow without unnecessary disruptions.

At Lawyerlink, we believe staying informed and proactive is the key to staying ahead. Here’s a user-friendly guide to the latest legal changes, what they mean for your business, and the steps you can take to prepare.

1. Strengthening worker rights: Employment law changes

The UK government is set to introduce significant reforms to employment law, reshaping the way businesses manage their workforce. These updates aim to enhance employee protections, foster productivity, and create a more adaptable environment for employers and employees alike. Although the full implementation may stretch into 2026, taking steps now will help your business stay ahead of the curve. Proactive preparation ensures compliance, supports workplace morale, and positions your business as an employer of choice.

Take note of these key changes:

• Statutory sick pay (SSP) reforms

Statutory sick pay will now be payable from day one of sickness, removing the current three-day waiting period. Additionally, the lower earnings limit (LEL) will be removed, meaning more employees will qualify for SSP. 

• Day-one unfair dismissal rights

Employees will gain the right to claim unfair dismissal from day one of employment, rather than after two years of continuous service. This includes a statutory probationary period with a simpler dismissal process for employers within the first nine months.

• Flexible working as a default

Employees will have the right to request flexible working from day one of employment. Employers will need to provide valid reasons for rejecting such requests and demonstrate that the decision is reasonable.

• Guaranteed contracts for regular hours

Workers who have had regular hours for 12 weeks will be able to request a guaranteed contract. 

• Third-party harassment protections

The Equality Act will be updated to include protections against third-party harassment, and larger employers will need to develop action plans to address gender pay gaps and support employees experiencing menopause.

What should you do?

Explore our detailed guide for more changes and step-by-step strategies.

2. Protecting personal data: New data protection rules

With data protection remaining a cornerstone of business operations, 2025 will bring updates to streamline compliance and align the UK’s regulations with global standards like the EU’s GDPR. These reforms focus on reducing red tape for SMEs, simplifying international data transfers, and ensuring robust privacy practices. By embracing these changes, businesses can enhance efficiency while safeguarding customer trust and meeting modern expectations around data security.

Take note of these key changes:

• Recognised legitimate interests

Certain data processing activities, such as fraud prevention and cybersecurity, can now be conducted without explicit consent, reducing admin while maintaining accountability.

• Simplified international data transfers

New tools like the International Data Transfer Agreement (IDTA) will make it easier for businesses to handle cross-border data flows.

• Easier compliance for low-risk activities

Less paperwork is required for low-risk data activities, allowing businesses to focus more on high-risk areas.

What should you do?

Start by updating your privacy notices to clearly explain recognised legitimate interests, making it easy for everyone to understand how data is used. Next, audit your international data transfers and update agreements to meet UK standards. Keep compliance simple by documenting data processing activities in a way that’s easy to demonstrate during audits. Train your team to understand the new rules and handle data responsibly, and don’t forget to invest in strong cybersecurity measures to protect against breaches and stay compliant.

Explore our detailed guide for more changes and step-by-step strategies.

3. Putting customers first: Consumer law updates

In today’s competitive market, keeping your customers happy isn’t just good practice—it’s essential. The Digital Markets, Competition and Consumers Act 2024 introduces fresh consumer law updates that will come into full effect in 2025. These updates are designed to promote fairness and transparency, helping businesses build stronger relationships with their customers. By focusing on customer rights and trust, these changes offer a chance for your business to stand out for all the right reasons.

Take note of these key changes:

• Fake reviews

It will now be illegal to post or commission fake reviews. You’ll need to make sure the reviews you share are genuine.

• Hidden fees

‘Drip pricing,’ where extra costs pop up only at checkout, is banned. All costs must be clear upfront, so customers know exactly what they’re paying.

• Subscriptions

Customers will now have better protections for subscriptions, including clear terms, renewal reminders, and easy cancellation options.

What should you do?

Start by auditing your customer journey to ensure your sales and checkout processes are transparent, with all costs clearly displayed upfront. Next, update your subscription terms to make them straightforward and customer-friendly, including clear renewal reminders and easy cancellation options. Finally, train your team to understand the new rules and provide honest, transparent service at every customer interaction. These steps will help you build trust and ensure compliance with the latest consumer protection laws.

Explore our detailed guide for more changes and step-by-step strategies.

4. Building trust: Corporate compliance changes

Corporate compliance is evolving, with new measures designed to enhance transparency and tackle fraud. Key changes include stricter identity verification for directors and controllers, improved record-keeping, and expanded powers for Companies House. These reforms aim to boost accountability and protect the integrity of the UK’s business environment. For your business, this is an opportunity to demonstrate integrity, build stronger partnerships, and reinforce trust with clients and stakeholders.

Take note of these key changes

• Identity verification

All directors and people with significant control (PSCs) will need to verify their identities with Companies House.

• Better records

Companies must maintain accurate and complete records, including shareholder details, and meet stricter reporting requirements.

• Companies House powers

The registrar will gain new authority to query, reject, and share information, helping tackle fraud and boost trust.

What should you do?

Get your leadership team ready for identity verification by ensuring they understand the process, and double-check that all filings are accurate and up-to-date. Take some time to review your company records internally to make sure everything is in line with the new requirements.