With some important updates coming into force next month, we have summarised the changes below to ensure you remain ahead of the law:
- Increase to Statutory Pay Rates
- Increase to Statutory Pay Rates
- Introduction of Neonatal Care Leave and Pay
- An update on the Employment Rights Bill
Statutory Pay Rates Increase
With the latest statutory rate increases having recently been announced, we have provided an overview below of the main increases you need to be aware of, ahead of them coming into force in April 2025.
National Minimum and Living Wage
From 1st April 2025, the minimum rate per hour will be:
- National Living Wage for workers aged 21 and over £12.21
- National Minimum Wage for workers aged 18–20 £10.00
- Young workers rate for workers aged 16‒17, £7.55
Apprentices under 19, or over 19 and in the
first year of the apprenticeship
Family Friendly Statutory Payments
From 6th April, the rate for these payments will increase to £187.18 (this includes maternity, adoption, paternity, etc).
Statutory Sick Pay
From 6 April, the weekly rate of SSP will be £118.75 per week, with the first three waiting days remaining unpaid. The lower earnings limit to qualify for SSP will rise to £125.00 per week.
Statutory Redundancy Pay
From 6th April the cap for a week’s pay, used for Statutory Redundancy Pay calculations, will increase from £700 to £719.
Neonatal Care Leave and Pay
April sees the introduction of a new statutory right for parents of babies born on or after 6 April 2025.
Employees are entitled to take one week of leave for each consecutive seven days the child receives neonatal care, up to a maximum of 12 weeks.
Neonatal care leave is in addition to other statutory family leave entitlements, meaning employees can add any accrued neonatal care leave on to the end of any other entitlement they are taking.
Subject to further eligibility criteria, employees taking neonatal care leave may also be entitled to receive up to 12 weeks of Statutory Neonatal Care Pay, paid at the same rate as other family leave payments such as maternity or paternity pay, which from 6 April 2025 will be £187.18 per week.
Amended Employment Rights Bill progresses in House of Lords
After passing through the parliamentary stages in the House of Commons, the Employment Rights Bill is making further progress towards becoming law following its first reading in the House of Lords on 14th March 2025.
The proposed amendments tabled by the Government, following its responses to consultations carried out last year, will be progressed in the amended version of the Bill. The amendments cover reforms to workers’ rights, including Statutory Sick Pay, dismissal and re-engagement and collective redundancy.
Under the Bill, the Government will introduce a new regulatory body, which will be known as the Fair Work Agency, which will have the power to bring employment tribunal claims on behalf of individuals, provide legal support and assistance to those who have brought a claim themselves and enforce the payment of statutory payments to employees.
The second reading of the Bill is due to take place in the House of Lords today.
We are here to assist you in ensuring compliance and safeguarding your business.
If you have any questions on any of the above, please get in touch with us.
If you have any questions on any of the above, please get in touch with the office: hr@wardwilliamshr.co.uk or call 01932 830664.