EMPLOYMENT LAW FOR GUN SHOPS: A RETAILER’S GUIDE TO KEY EMPLOYMENT LAW UPDATES FOR 2025

In recent years, the debate surrounding the regulation of blank firing firearms Turkish-manufactured top-venting blank firers (TVBF) in the United Kingdom has intensified. Cheap to import, they are said to be readily (and cheaply) convertible to fire live ammunition making them desirable to acquire for on the black market.

Legal compliance surrounding UK employment laws is expected from all businesses that operate under its jurisdiction, with Registered Firearms Dealers (RFDs) being no exception to that rule. It is crucial that RFDs ensure compliance to the specific duties that apply in respect of their employees, otherwise known as ‘servants’ of the RFD in accordance with the Firearms Act 1968, whilst also adhering to the wider duties that exist for employers.

Here, Brabners explore the duties that apply specifically to RFDs and their servants, and reflect upon the significant key changes that are set to take place in 2025 that RFDs should be aware of and prepared for.

REGISTERED FIREARMS DEALERS AND THEIR ‘SERVANTS’

The current UK legislation that governs an authorised person dealing with firearms is found in Section 8 of the Firearms Act 1968. There is no requirement for an RFD’s servant to hold a certificate to be able to deal with firearms during the course of their employment, but the RFD needs to satisfy themselves that the servant is a fit and proper person to undertake the role.

To ensure compliance with the legislation and the revised Statutory Guidance for Chief Officers of Police, when completing an application for first time registration or renewal, RFDs are required to include details within Form 116 of the servants that ‘are or will be authorised to possess, purchase or acquire firearms and ammunition’ during the course of their employment with that specific RFD. There is an additional requirement to fill in Form 116(A) if it is the case that there are ‘additional places of business’.

This ensures that the police have the necessary information to complete adequate background checks on the servant or servants. It is then the responsibility of the Police to inform the RFD of any concerns they have with regards to public safety in respect of the named servant.

Despite the final decision resting on the RFD’s shoulders, if they fail to act on a recommendation made by the police without good reason, the police are entitled to form the view that the RFD themselves may not be suitable, and they may take steps to remove the RFD from the Register of Firearms Dealers.

Key employment law changes: Alongside these specific duties applicable to RFDs and existing employment laws in place that govern the day-to-day running of all businesses in the UK, there are some key legislative changes that are set to take place later this year. As RFDs navigate the evolving legal landscape of employment law, staying informed and preparing for these upcoming changes will be essential to ensure compliance and fair workplace practices.

While some updates will take effect this year, the most impactful reforms will arrive in 2026 with the Employment Rights Bill, published on 10 October 2024. This landmark legislation is set to overhaul various aspects of workplace rights with the intention to protect UK workers. As a result, there will be significant periods of consultation in 2025.

The key employment law changes taking place in 2025 are outlined below.

1. Statutory Code of Practice on dismissal and re -engagement

The practice of ‘fire and rehire,’ where employees are dismissed and re-engaged under less favourable terms, has been widely criticised and identified as needing significant reform and this has resulted in the introduction of the Statutory Code of Practice on dismissal and re -engagement (“the Code”), which came into force in July 2024.

The Code provides guidance to employers when altering contracts of employment where there is a possibility of dismissal and re-engagement. In such circumstances, an employment tribunal may make a protective award where an employer has failed to comply with its duty to collectively consult with employee representatives where they are proposing to dismiss and re-engage over 20 employees at one establishment within a 90 day period. The maximum award is currently up to 90 days’ pay, but under a recent amendment to the Employment Rights Bill that could increase to up to 180 days.

Crucially, since 20 January 2025, an employment tribunal has the power to increase a protective award by up to 25 percent if an employer is found to have failed to comply with the Code. Conversely, the Code also provides employment tribunals with the power to decrease a protective award by up to 25 percent where an employee is found to have unreasonably failed to comply.

The Code illustrates that fire and rehire should be a last resort and echoes the Government’s commitment to ensuring fair treatment of employees. The potential uplift in the protective award should serve as a strong incentive to employers to follow the Code who should ensure that all those dealing with cases of dismissal and re -engagement should be aware of the Code’s requirements.

2. National Minimum Wage

Effective from 1 April 2025, the National Minimum Wage will increase for all relevant worker categories:

• National Living Wage: £12.21

• 18 – 20 year old rate: £ 10.00

• 16 – 17 year old rate: £7.55

• Apprentice rate: £7.55

The above rates are set until 31 March 2026. However, the Low Pay Commission anticipates consulting in 2025 to achieve reducing the National Living Wage age threshold from 21 to 18. Employers should be prepared for these increases to prevent unintentional breaches, particularly those arising from deductions such as salary sacrifice.

3. Statutory Sick Pay (SSP)

From 6 April 2025, SSP will increase by £2.00 from £116.75 to £118.75.

Currently, only those earning above the weekly Lower Earnings Limit (which from 6 April will be £125) are eligible to receive SSP. The recently amended Employment Rights Bill proposes to remove that condition albeit limiting the amount of SSP received by those earning below the Lower Earnings Level to 80 percent of the SSP flat rate.

4. Statutory Maternity, Paternity, Adoption, Shared Parental, Parental Bereavement Pay and Statutory Neonatal Care Pay

Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay will increase from 6 April 2025 to £187.18 per week (up from £184.03). Additionally, this year Neonatal Care Pay for parents of babies requiring seven days or more neonatal care within 28 days of birth will be introduced at the same rate as other parental leave. Employers should amend existing policies or introduce new policies to reflect this if required.

For all of these payments the employee will be entitled to the lesser of 90 percent of their average weekly earnings and the £187.18 figure. That is with the exception of Statutory Maternity and Adoption Pay, where the 90 percent figure is guaranteed (where lesser than the £187.18 figure) for the first six weeks.

The minimum average weekly earnings required to qualify for these family-related payments is £125 (the Lower Earnings Limit).

5. National Insurance Contributions

Employers will face increased National Insurance Contributions (“NICs”) this year. NICs are payable to HMRC by employees, their employers and by self-employed workers.

From April 2025, the employer NICs will increase from 13.8 percent to 15 percent and the threshold at which employers start paying NICs will decrease from £9,100 to £5,000.

6. Increases to Employment Tribunal awards

The maximum compensatory award for unfair dismissal cases will increase from £115,115 to £118,223 on 6 April 2025. The minimum basic award for certain unfair dismissals, such as health and safety dismissals, will also rise from £8,533 to £8,763. For these new figures to apply, the effective date of termination must fall on or after 6 April 2025.

Additionally, for the purposes of calculating the basic award for unfair dismissal claims and statutory redundancy pay, the statutory limit on a week’s pay will increase from £700 to £719. This will take the maximum basic award for unfair dismissal, and the maximum statutory redundancy pay, up to £21,570.

2025 will bring significant changes to the employment landscape. It is essential for RFDs to meet specific requirements during the course of their servant’s employment, however, they must not forget their other legal duties required as an employer. It is imperative that RFDs are ready for the new legislative changes that are set to come into place, and this can be achieved by updating policies, ensuring compliance, and fostering safer, fairer working environments.