Upcoming UK Employment Law Changes – April 2025

27th February 2025

Here are some key employment law changes coming into effect in April 2025:

National Minimum Wage Increase (Effective 1 April 2025)
For workers aged 21 and over: The hourly rate will rise from £11.44 to £12.21.
For workers aged 18 to 20: An increase from £8.60 to £10.00 per hour.
For workers aged 16 to 17 and apprentices: The rate will go up from £6.40 to £7.55 per hour.

Employer National Insurance Contributions (NICs) Changes (Effective 6 April 2025)
Rate Increase: Employer NICs will rise from 13.8% to 15% of employee earnings.
Threshold Adjustment: The threshold at which employers start paying NICs will decrease from £9,100 to £5,000 annually.

Statutory Sick Pay (SSP) and Family-Related Pay Adjustments (Effective 6 April 2025)
SSP: The weekly rate will increase from £116.75 to £118.75.
Statutory Maternity, Paternity, Adoption, and Shared Parental Pay: These will rise from £184.03 to £187.18 per week.

Introduction of Paid Neonatal Care Leave (Expected April 2025)
Eligible parents of babies requiring neonatal care will be entitled to up to 12 weeks of statutory neonatal care leave, in addition to existing parental leave rights. This leave must be taken within 68 weeks of the child’s birth.

Employment Rights Bill Progress
The Employment Rights Bill, introduced in October 2024, proposes significant reforms, including:

“Day One” Right Against Unfair Dismissal: Allowing employees to challenge unfair dismissal without a qualifying period.
Extended Equal Pay Rights: Aiming to protect workers from discrimination based on race or disability.

While the bill is expected to pass into law by mid-2025, many reforms will likely take effect in 2026.

There are also proposed reforms in the Employment Rights Bill that could impact unfair dismissal rights and equal pay protections.

It’s worth reviewing these updates to ensure your business remains compliant and prepared.

Let us know if you would like to discuss how these changes may affect your business.

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