HR must prepare for a number obligations that will come into effect in April, even though the Employment Rights Bill has yet to pass through Parliament.
Employers must also consider the new laws regarding redundancy and neonatal leave, as well as the controversial increase in employer’s national insurance contributions.
Personnel Today offers a HR checklist for April 20,25.
Minimum wage increases in the U.S.
From 1 April 2025, the National Living Wage for employees over 21 years of age will be increased to PS12.21 an hour. The national minimum wage for workers between 18 and 20 years old will increase by PS1.40 per hour, to PS10.00. For 16-17 year-olds the rate will be raised to PS7.55. Apprentices must also be paid at least 7.55 PS an hour.
Employers’ NICs go up
announced in the budget of last October that employers’ contributions to national insurance will increase from 13.8% onwards, up to 15% by 6 April 2025. Employers will no longer be liable for NICs if they earn less than PS9,100. The threshold is set to drop to PS5,000 until April 5, 2028.
Employment allowances will go up from PS 5,000 to PS 10,500. The PS 100,000 eligibility threshold will be removed.
Statutory increases in sick pay
The statutory sick pay will increase by PS2 per week to PS118.75 from the 6th of April. In addition, the minimum earnings requirement to qualify for these payments has been raised to PS125.
Kate Palmer, Peninsula’s director of employment services, says that, while the increase in statutory sick pay is small, the bill also includes proposals to provide sick pay for workers. According to these proposals, regardless of the worker’s usual earnings, they will all be entitled to receive either 80% or a flat rate of their weekly wages, whichever is less, on the first day of sickness.
Introduced neonatal leave and pay
Families with newborns in care are entitled, starting 6 April, to up to 12 week’s neonatal leave. They will also be entitled to Neonatal Care Pay, if they can prove that they have been working for a certain period of time and meet a minimum income threshold.
The statutory neonatal care payment will be paid in the same amount as other family leave payments. This will be PS187.18 per week starting April 2025.
Increased limits on tribunal awards and statutory redundancy
From 6 April, the limits for different tribunal awards are increasing. This includes the maximum amount of pay per week to be used to calculate a redundancy payout.
The limit on compensatory awards will increase from PS115.115 to PS118.223.
The maximum award for illegal inducement in relation to union membership or activity will also increase, from PS5,000 up to PS5,735.
The rates of maternity, paternity, and adoption pay are increasing
New statutory maternity, paternity and adoption rates will be in effect from 6 April 2025.
The statutory maternity, paternity and adoption pay, as well as shared parental pay, will increase nominally by PS184.03 per week to PS187.18.
The threshold for these payments is also going up, from PS123 per week to PS125. The threshold for maternity benefit will remain at PS30 a week.
The weekly threshold for employees receiving carer’s payments will increase from PS151 to PS196. Weekly payment will also rise from PS81.90 up to PS83.30.
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