The November 2025 Budget introduced a range of changes that affect how employment rights are enforced across the UK. While many existing laws remain the same, the big shift is in how those rights will be protected, monitored and acted on when employers break the rules.
The government’s focus is on stronger enforcement, better protection for vulnerable workers and more visibility around employers who fail to meet their legal responsibilities. This includes the creation of a new Fair Work Agency, tougher action on underpayment, and improved oversight of sectors where exploitation is more common.
These changes are especially relevant for people in insecure work, such as those on zero-hours contracts, gig economy platforms or low-paid roles where power imbalances are more likely.
This guide explains what was announced in the November 2025 Budget, how it affects your rights at work, and what steps you can take if your employer is not treating you fairly.
One of the biggest announcements in the November 2025 Budget is the creation of the Fair Work Agency. This new body has been set up to strengthen how employment law is enforced and make it easier for workers to take action when their rights are being ignored.
The Fair Work Agency will bring together responsibility for enforcing key workplace rights into one central organisation. This includes areas such as minimum wage, holiday pay, sick pay and other basic legal protections. The aim is to make the system simpler, more visible and more effective for people who need support.
Rather than workers being passed between different bodies or struggling to understand where to turn, the Fair Work Agency is intended to provide a clearer route for raising concerns and triggering formal investigations.
A major priority for the agency will be tackling exploitation in high-risk sectors such as hospitality, social care, construction, delivery services and other areas where insecure contracts are more common. There will also be a stronger focus on repeat offenders, with tougher consequences for employers who consistently break the law.
For workers, this means there should be:
In practical terms, the Fair Work Agency signals a shift towards holding employers to account more quickly and more effectively, rather than leaving workers to carry the burden alone.
The November 2025 Budget makes it clear that the government wants to take a tougher stance on employers who repeatedly ignore employment law. The focus is no longer just on setting rules, but on actively enforcing them and making sure there are real consequences when those rules are broken.
One of the key changes is increased monitoring and investigation of businesses that are suspected of exploiting workers. This includes more inspections, deeper investigations and better coordination between enforcement bodies and trade unions. Sectors with a history of poor practices will face closer scrutiny.
There will also be greater use of public naming, where employers who are found to have broken employment law are published on official lists. This is designed to deter bad behaviour, warn workers and increase transparency across industries.
For serious or repeated breaches, the government is exploring stronger penalties, including action against senior leaders and directors who allow unlawful treatment of workers to continue. This signals a clear shift towards accountability at the top, not just at a company level.
For workers, this change means:
Overall, this represents a move towards stricter enforcement and greater accountability, helping to create safer and fairer workplaces.
Another major focus of the November 2025 Budget is tackling underpayment and making sure workers receive at least the legal minimum they are entitled to. While minimum wage rates already exist, the issue has often been weak enforcement rather than a lack of rules. The new approach is designed to close that gap.
The government has committed to stronger action against employers who fail to pay the minimum wage or who withhold wages unlawfully. This includes closer monitoring, faster investigations and more follow-up on worker complaints. Employers who are found to be underpaying staff are more likely to face formal penalties and public exposure.
There is also a stronger emphasis on holding senior decision-makers accountable, not just the business itself. This means directors and managers who allow ongoing underpayment to happen could face personal consequences alongside corporate penalties.
For workers, this brings more clarity and confidence when dealing with pay issues. If you suspect you are being underpaid, the system should now be more responsive and harder for employers to avoid.
This change directly supports workers who:
In practical terms, the message is clear: being underpaid is not something you should have to tolerate, and employers are now under far greater pressure to comply with the law.
The November 2025 Budget recognises that the way people work has changed, and with that comes the need for stronger protection for those in insecure or non-traditional roles. This includes people on zero-hours contracts, gig economy platforms, casual work arrangements and other forms of flexible labour.
A key change is the plan to extend right to work checks so they apply more consistently across these types of working arrangements. This is aimed at reducing exploitation and preventing businesses from using informal or unclear employment structures to avoid legal responsibilities.
Alongside this, there is increased scrutiny of how businesses treat people who are technically classed as self-employed but are working in conditions similar to employees. The goal is to close loopholes where workers are denied basic rights.
For workers in these roles, this signals a move towards greater protection and clearer standards. While flexibility remains, there is stronger recognition that flexibility should not come at the cost of fair treatment.
This change affects people who:
In simple terms, the government is acknowledging that insecure work should not mean fewer rights, and enforcement is being adjusted to reflect modern working practices.
A strong theme running through the November 2025 Budget is the crackdown on worker exploitation and unsafe workplace conditions. The government has highlighted concerns around industries where poor treatment has become more common, particularly where workers feel unable to speak up or fear losing their job.
New funding and enforcement powers are being focused on identifying businesses that rely on illegal practices, including unpaid labour, unsafe working conditions and breaches of basic employment protections. This includes closer collaboration with trade unions, local authorities and enforcement agencies to identify patterns of abuse.
The aim is not just to punish employers after harm has occurred, but to prevent exploitation before it becomes the norm. Workers who are vulnerable, migrants, low-paid staff and people on insecure contracts are expected to benefit most from this shift.
Signs of exploitation can include:
These measures send a clear signal that exploitation will be taken more seriously, and that workers who experience unfair or unsafe treatment should feel more confident in raising concerns and seeking help.
As part of the November 2025 announcements, the government also confirmed new minimum wage rates following recommendations from the Low Pay Commission. These changes will come into effect from April 2026 and will directly impact millions of workers across the UK.
The National Living Wage, which applies to workers aged 21 and over, will increase by 4.1% to £12.71 per hour. This is aimed at delivering a real terms pay rise for low-paid workers and ensuring the rate remains at least two-thirds of median earnings.
This increase reflects continued recognition that low-paid workers are still feeling pressure from rising living costs, even as the economy shows mixed growth.
For many employees, this change will lead to a noticeable boost in take-home pay. For example, someone on the National Living Wage working 37.5 hours per week will see their annual gross pay rise by around £977, or roughly £81 more per month.
If you are paid close to the minimum wage, it is important to check that your employer adjusts your pay in line with these new rates from April 2026. Failure to do so could mean your employer is breaking the law.
With increased focus on enforcement and stricter oversight from the new Fair Work Agency, employers who fail to pay the correct minimum wage are more likely to face investigation and penalties. This strengthens your position if you suspect you are being underpaid.
Workers should expect:
This update reinforces the broader aim of the November 2025 Budget: improving fairness, strengthening enforcement and better protecting low-paid workers.
Alongside the employment law changes announced in the November 2025 Budget, the government has also confirmed an important update to how salary sacrifice for pension contributions will work in future.
Salary sacrifice is when you agree to reduce your gross salary, and your employer pays that amount directly into your pension instead. This arrangement has traditionally allowed both employees and employers to save on National Insurance contributions (NICs).
From April 2029, this system will change.
Only the first £2,000 of pension contributions made through salary sacrifice each year will be exempt from National Insurance. Any amount above £2,000 will still go into your pension, but it will be subject to both employee and employer NICs, just like standard pension contributions.
You do not need to contact HMRC or take any immediate action. Employers will update payroll systems to apply the new rules when they come into force.
Find out more about the salary sacrifice pension cap.
The government says this is designed to make the system fairer, as the biggest financial benefit of salary sacrifice arrangements has mainly gone to higher earners. By capping the NIC exemption, the aim is to create a more balanced and sustainable approach to pension tax relief.
If you currently use salary sacrifice for higher pension contributions, this change could slightly reduce the financial advantage in future. It may be worth reviewing your pension strategy closer to 2029 or seeking advice on the most efficient way to contribute.
While this change sits more within tax and pensions policy, it still affects take-home pay and workplace benefits, making it another important development for workers to understand.
While policy changes can feel distant or hard to relate to, the measures announced in the November 2025 Budget are designed to have a very real impact on everyday working life. How these changes affect you will depend on your role, contract type and how your workplace operates.
For full-time and part-time employees, the changes mean stronger enforcement of existing rights. If your employer fails to pay you correctly, denies you holiday, or ignores legal protections, there is now a clearer and more robust system for holding them to account.
For zero-hours and gig economy workers, the shift is particularly important. These types of roles have often sat in a grey area where flexibility has come at the cost of security. The new approach signals greater protection, more consistent checks and fewer opportunities for employers to exploit unclear arrangements.
For agency workers and casual staff, increased scrutiny of compliance means employers are under more pressure to treat you fairly, pay you properly and respect basic rights.
In simple terms, the overall message is that:
These changes are designed to shift power away from bad employers and towards everyday workers, making it harder for unfair treatment to go unchecked.
If you believe your employer is breaking employment law, the most important thing to know is that you do not have to just put up with it. The changes announced in the November 2025 Budget are intended to make it easier for workers to take action and be taken seriously.
The first step is to recognise when something isn’t right. This could be ongoing underpayment, refusal to pay holiday, unsafe working conditions, or being treated unfairly compared to others. Trust your instincts if something feels off.
Start by gathering evidence. Keep copies of payslips, contracts, messages, rotas and any written communication that shows what is happening. This can make a big difference if you later need to raise a formal complaint or take legal action.
Where possible, you may choose to raise the issue informally with your employer or line manager. Sometimes problems can be resolved quickly through clear communication. However, if the issue continues or feels serious, it may be necessary to submit a formal grievance.
If your employer ignores your concerns or the situation escalates, seeking legal guidance can help you understand your options and protect your position. This might include reporting the matter to the relevant enforcement body or preparing for an employment tribunal claim.
Key steps to take include:
Taking action early can prevent problems from becoming more damaging, both financially and emotionally.
Dealing with workplace issues can feel confusing, stressful and isolating, especially when you are unsure where to turn or whether your situation is serious enough to challenge. This is where Valla aims to make the process clearer and less overwhelming.
Valla provides practical legal guidance to help you understand your rights and take sensible next steps. Whether you are facing underpayment, unfair treatment, discrimination or unsafe working conditions, the focus is on giving you clear information and support that helps you feel more confident in your decisions.
From understanding whether you have a case to preparing complaints, gathering evidence or navigating the early stages of legal action, Valla helps break down complex employment law into steps that feel more manageable.
The goal is not to push people into unnecessary legal battles, but to empower workers with knowledge and structure so they can protect themselves and make informed choices about what to do next.
The changes announced in the November 2025 Budget mark a clear shift towards stronger protection for workers and tougher enforcement against employers who break the law. By improving how rights are monitored and acted upon, the government is placing greater responsibility on businesses to treat people fairly and legally.
For workers, the most important takeaway is that unfair treatment should not be ignored or accepted as normal. Whether you are underpaid, mistreated or unsure about your rights, there are clearer routes to challenge poor behaviour and seek support.
Understanding your rights is the first step towards protecting them. With the right information and guidance, taking action doesn’t have to feel intimidating. You deserve to feel safe, respected and treated fairly at work.