As we enter a new financial year, the Employment Rights Bill has passed through the House of Commons and is now under review by the House of Lords. The Employment Rights Bill is expected to introduce several major changes over the coming years, affecting areas such as tribunal claims, Fair Work Agency, collective redundancy, fire and rehire, and zero-hour contracts. Sarah Dureau, Partner in our Employment Law team, outlines below the confirmed employment law changes that took effect from the beginning of April 2025, and explains how employers can take steps to stay one step ahead of the law.
Minimum Wage Increases
Minimum wage for all ages has had an increase, and with the Government's aim of creating a set rate for all those over the age of 18, a significant increase can be seen for 18 to 20-year-olds. The minimum wage rates from 1st April 2025 are as follows:
- 21 and over is now £12.21 (from £11.44 – 6.7% increase)
- 18 to 20 is now £10.00 (from £8.60 – 16.3% increase)
- Under 18's is now £7.55 (from £6.40 – 18% increase)
- Apprentice's is now also £7.55 (from £6.40 – 18% increase)
Increase in Lower Earning Limit, Sick Pay and Statutory Rates
Statutory Sick Pay has also seen an increase as of 6th April 2025 and is now £118.75 a week (previously £116.75). Statutory Sick Pay is only available to those earning over the lower earnings limit, which has increased from £123 to £125, a change that came into effect on 6th April 2025. The new plan for SSP hopes to see those earning less than the lower earnings limit (£125) to be entitled to 80% of their average weekly wage or SSP (118.75), whichever is lowest.
From 6th April, there was an increase from £184.03 per week to £187.18 per week on the following statutory pays;
- maternity pay,
- paternity pay,
- adoption pay,
- shared parental leave pay and
- parental bereavement pay.
Neonatal Care (Leave and Pay) Act 2023
The Neonatal Care (Leave and Pay) Act 2023 came into force on 6th April 2025. The Act allows parents with babies in neonatal care to take up to an additional 12 weeks leave and pay on top of any other leave they are entitled to. Neonatal Care Leave and statutory Neonatal Care Pay applies to parents whose babies are admitted to neonatal care during the first 28 days of being born and are to stay in hospital for seven full days or longer.
A reminder of the things that came into effect last year in April 2024
In April 2024, we saw significant changes in employment law, including:
- Flexible working requests: employees are now able to make two requests a year for flexible working arrangements.
- Carers Leave Act 2023: employees are now entitled to take one week of unpaid leave a year to care for a dependent with long-term care needs. This may be someone with a disability, illness, an injury that requires care for longer than 3 months, or someone in old age.
- Protection from Redundancy (Pregnancy and Family Leave) Act 2023: The Act offers increased protection against redundancy for those during or after pregnancy, or those on maternity, adoption, or shared parental leave. The employees should be offered a suitable alternative job offer where possible, before they are made redundant.
- Flexibility for paternity leave: the two weeks can now be split and taken in two separate weeks rather than consecutively. The leave can also be taken at any point within the first year after the child's birth or adoption of their child.
How should employers act and protect themselves?
With the new employment laws coming into effect from April 2025, it is crucial for employers to take proactive steps to stay informed and compliant to the changes. If you fail to implement the necessary changes it could lead to legal risks, financial penalties, or employee disputes. Here are some key actions to take:
- Review and update your company policies,
- Stay up to date and seek legal advice when necessary,
- Ensure your management team are trained and up to date with the new laws,
- Keep your employees informed of any changes that could have an impact on them,
- Check HR and payroll systems ensuring you comply with new statutory pay regulations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
