Welcome to the latest Recruitment Robin Round-Up! As of April 1, 2025, several significant employment law changes have come into effect in the UK.
It’s essential for employers to stay informed and ensure compliance with these updates, so let’s take a look at the key changes that all employers need to be aware of this month.
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National Minimum and Living Wage Increases
Effective today, the National Living Wage for workers aged 21 and over has increased to £12.21 per hour. For younger workers, the National Minimum Wage rates have also risen:
Ages 18-20: £10.00 per hour
Ages 16-17 and apprentices: £7.55 per hour
These adjustments aim to support workers with the rising cost of living. Employers should review their payroll systems to ensure all employees are compensated according to the new rates.
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Increase in Employers’ National Insurance Contributions (NICs)
Starting April 6, 2025, employers will experience an increase in National Insurance Contributions, rising from 13.8% to 15%. Additionally, the threshold for these contributions has been lowered from £9,100 to £5,000, impacting many businesses, especially those employing part-time workers.
It’s crucial to assess how this change affects your organisation’s financial planning and budgeting.
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Introduction of Neonatal Leave and Pay
From April 6, 2025, employees will have a statutory right to neonatal leave and pay for babies born on or after this date.
This new legislation provides parents with additional support during challenging times. Employers should update their family leave policies and ensure HR teams are prepared to handle requests in line with the new regulations.
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Holiday Pay Reforms for Irregular Hours and Part-Year Workers
For leave years beginning on or after April 1st, 2025, reforms have been introduced to simplify holiday entitlement and pay calculations for workers with irregular hours or those who work part of the year.
Employers now have the option to implement rolled-up holiday pay, where holiday pay is calculated and paid alongside regular wages. It’s advisable to review contracts and payroll processes to accommodate these changes.
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Statutory Pay Rates Adjustments
Statutory pay rates for maternity, paternity, adoption, shared parental leave, and parental bereavement have increased from £184.03 to £187.18 per week. Additionally, Statutory Sick Pay (SSP) has risen from £116.75 to £118.75 per week. Ensure your payroll systems are updated to reflect these new rates.
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Flexible Working Requests
While not new for April 2025, it’s a good reminder that employees now have the right to request flexible working arrangements from day one of their employment.
Employers must handle these requests in a reasonable manner and provide decisions within two months. Review your flexible working policies to ensure they align with current legislation.
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Staying on top of these changes is vital for maintaining compliance and fostering a supportive work environment.
If you have any questions or need assistance navigating these updates, the Recruitment Robin team is here to help.
Get in touch with us today to ensure your business remains compliant and continues to thrive amidst these changes.
