Whilst Christmas is a time to relax and unwind, it provides the perfect opportunity to read up and get ahead for a successful and legally compliant 2025. One concern for many business owners is how changing legislation can affect their business next year. From data protection, to regulating the use of AI to employee rights, here we breakdown the top legal trends that could impact small to medium businesses in 2025.
AI Regulation
The influence of AI on the day to day running of businesses has been phenomenal over the last few years. From chatbots, content creation to streamlining tasks whilst the technology has been controversial, many companies are finding it an asset; as well as enjoying the benefits of artificial intelligence. The law is set to respond in an attempt to manage the emerging and rapidly growing technology; The EU signed into law its risk based regulatory framework which plays a key role in regulating how businesses use AI and ensure that consumers are protected. As a business owner, understanding how the regulation can impact your business is key to assessing to what extent you wish to engage the technology. Also, ensure you have internal governing policies in place to stay compliant.
Employee Rights
Following the labour government coming into power, there are ambitious legislative changes being planned that could affect employment law in 2025. As an employer, being aware of these is key to managing a successful and legally compliant workplace. The key changes being proposed are;
1. Unfair Dismissal
Under new plans, employees will have immediate security from the moment they are hired removing the unfair dismissal. Employers will adobe prevented from firing and rehiring their employees under less fair terms.
2. Zero-Hour Contracts
In further efforts to increase employee security, zero-hour contracts will be replaced with average hours. This is to give them stability in their roles.
3. Single Worker Status
Moving towards single work status will help support self-employed workers with enhanced rights and simplify employment categories.
4. Pay
The average salary is likely to increase with minimum thresholds in place to benefit low-income workers. Further there may be a banning of unpaid internships to protect young workers and those switching careers.
Additionally, understanding and being prepared for these changes can ensure a happier and healthier working environment for your business. We are here to support you with a free consultation on the proposed legislation and on-going legal advice throughout the year.
5. Data Protection
2025 is going to be an interesting year for data protection with the introduction of a new “recognised legitimate interest” ruling. Sounds complicated? It may actually make things easier. This will remove the need for user consent in certain cases. Under this significant ruling, data protection activities that are classed as essential to society or business will not require consent. Moreover, to understand the thresholds and ask specific questions relating to your business you can book a consultation to discuss with one of our teams. There may also be increases to data protection fees to assist the government with carrying out the required services.
Transparency of Company Ownership
When you start a business one of the first things you do is register at the company’s house. Knowing what, when and who you have to update the register with can be confusing. Also, with 2025 set to increase requirements for transparency making sure you are compliant is the key. If you have questions regarding the status of your filings, a simple chat with one of our team members could put your mind at rest. And at Waterstone Legal, that’s exactly what we are here for.
The Wrap Up
2025 is set to change the legal landscape for businesses with ambitious changes. The new legislation aims to increase employee rights, streamline data protection and regulate the use of AI. For business owners there will be increasing pressure to ensure their internal policies are in place and that ownership is transparent at the company’s house. Hence, staying up to date with legal changes will ensure you have a smooth and successful year. If you have any questions do not hesitate to get in touch with one of the best legal experts in London. Waterstone Legal is always here to take away headaches and keep you moving forward.
