What’s happening?
April is always a busy month – not only is it the end of the personal tax year, but the government tends to bring into effect a host of legislative changes as well! Below is a short reminder of some of the key employment law changes coming into effect this April.
Why is this important?
Neonatal Care Leave & Pay
The Neonatal Care (Leave and Pay) Act 2023 has been in the works for some time and will apply to any child born on or after 6 April 2025. On 20 March 2025, secondary legislation designed to add the substance behind this Act was finally made in Parliament. You can read our original article, and our recent update covering the substantive details of this new right below:
- Original Article: Employment Alert – Neonatal Care (Leave and Pay) Act 2023
- Latest Article: Employment Alert – Neonatal Care Leave & Pay: The Details
Increase to National Minimum Wage
As with previous years, the National Minimum Wage rates are increasing on 1 April 2025. We have previously set out the new rates and discussed the potential impact and risks in the following articles:
- Employment Alert- National Living Wage Increase
- Employment alert – Employers Named & Shamed for Failing to Pay the National Minimum Wage
Increase in Tribunal Compensation Limits and Statutory Pay Rates
The compensation limits for Employment Tribunal awards and the prescribed rates of pay for several statutory rights are also increasing from 6 April 2025. The main increases for employers to be aware of are as follows:
| New Rate (from 6 April 2025) | Previous Rate (from 6 April 2024) | |
| Family-Related Pay (prescribed rate of pay per week for SMP, SPP, SAP, ShPP, SPBP and SNCP) | £187.18 | £184.03 (n.b. SNCP was not in force in 2024) |
| Statutory Sick Pay | £118.75 | £116.75 |
| Statutory Redundancy Pay Cap | £21,570 | £21,000 |
| A Week’s Pay (used to calculate various tribunal awards and for determining statutory redundancy pay) | £719 | £700 |
| Maximum Compensatory Award for Unfair Dismissal | £118,223 (or 1 year’s gross pay, whichever is lower) | £115,115 (or 1 year’s gross pay, whichever is lower) |
| Injury to Feelings Award (bands for compensation used in discrimination claims) | Lower: £1,200 – £12,100 Middle: £12,100 – £36,400 Upper: £36,400 – £60,700 | Lower: £1,200 – £11,700 Middle: £11,700 – £35,200 Upper: £35,200 – 58,700 |
What should you do?
Prepare: Review how the changes will impact your business financially and operationally. With employers’ potential financial liability increasing, you may want to make greater provision in their budgets to anticipate these changes.
Advice: If you require advice relating to these changes or other employment law issues, please contact [email protected] who can put you in touch with one of our specialist employment lawyers.
Disclaimer
This information is intended for general informational purposes only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0800 2800 421.
