Here is a reminder of the employment law changes due to take place this April:
National Minimum Wage Rates
The confirmed National Minimum Wage rises for workers which will take effect from 1 April 2025 are as follows:
- National Living Wage for those aged 21 and over: This will increase by 6.7%, moving from £11.44 to £12.21 per hour.
- National Minimum Wage for those aged 18 to 20 years old: Witnessing a substantial rise of 16.3%, this rate will go from £8.60 to £10.00 per hour.
- National Minimum Wage for those aged 16 and 17 years old: This rate will see an 18% increase, from £6.40 to £7.55 per hour.
- Apprentice Rate: Similarly, the apprentice rate will also see an 18% increase, from £6.40 to £7.55 per hour.
- Accommodation Offset: This will increase by 6.7%, from £9.99 to £10.66.
Increases to Statutory Sick Pay and Other Benefits
From 6 April 2025, statutory sick pay will rise from £116.75 to £118.75 per week.
Additionally, starting 7 April 2025, the statutory rates for maternity, paternity, adoption, shared-parental, neonatal care pay and parental bereavement pay will increase from £184.03 to £187.18 per week. The lower earnings limit, which is the earnings threshold required to qualify for these payments, will also increase from £123 per week to £125 per week.
The Neonatal Care (Leave and Pay) Act 2023
The Neonatal Care (Leave and Pay) Act 2023, which received Royal Assent in May 2023, is set to be implemented on 6 April 2025. This Act introduces a new statutory leave and pay for parents whose babies require neonatal care.
- Neonatal Care Leave: This will be a “day one” right for employees whose babies are admitted to hospital for medical or palliative care for at least seven consecutive days within the first 28 days of birth. The leave duration will depend on the baby’s hospital stay, ranging from at least one week to a maximum of 12 weeks, in addition to existing parental leave entitlements. The leave can be taken anytime within the first 68 weeks following the baby’s birth.
- Neonatal Care Pay: To qualify for statutory neonatal care pay, employees must have at least 26 weeks of continuous service and meet the lower earnings limit. The pay is the same statutory prescribed rate applied to other types of family-related leave, as referred to above.
Annual Increases to Tribunal Limits, Compensation and Redundancy Payments Announced
The usual annual increases to unfair dismissal compensation and the maximum week’s pay for the purposes of calculating statutory redundancy payments will also take effect from 6 April 2025. These are due to be announced later this month, and we will provide a provide an update once these amounts have been confirmed.
With so many legislative changes taking place in 2025, employers should check that their employment contracts and policies are up to date with current employment law. We can assist with these tasks so please do not hesitate to contact us for further information.