Employment Law changes every year and it is important for employers to prepare for April 2025.
Review pay rates – not just minimum wage but any gaps that are decreased
New wage brackets have been announced
Whilst you may look at who needs an increase by default, have you looked at what this increase does to those on just above the minimum wage. How much does it decrease the gap? Can you afford to apply the same percentage increase? From an employee’s perspective if they were worth £1 more than minimum wage last year but now that difference has decreased to 23p what will that do for their morale and motivation? The annual increases are a chance to review your whole business pay structure and ensure you are competitive but also keep an eye on the bottom line!
Look at family related pay and SSP and ensure paying the correct amounts
As well as minimum wages the statutory payments change. Whilst this may not affect your employees immediately on the 6th April, if they do find that they are going to use Statutory Maternity Pay, or be off sick for any reason in the future, for example, then you need to make sure you have updated your payroll process to the new figures.
National Insurance changes
Employers’ National Insurance contributions (NICs) will increase from 13.8% to 15%. and the secondary threshold (the point at which employers start paying NICs) will drop from £9,100 to £5,000 per year. These changes mean that many businesses will pay more employer National Insurance than before, and more employers will become liable to pay NICs. It is important that as an employer you have accounted for these potential costs and the effect it will have on your bottom line.
Introduce a policy for Neonatal Care
The Neonatal Care (Leave and Pay) Act 2023 introduces a new right for parents to take leave when their baby requires neonatal care.
This leave is in addition to existing maternity, paternity, and shared parental leave entitlements.
You should have a policy that covers in detail the provisions of this leave, and ensure you handle any requests correctly.
Keep track of the employment rights bill
Although we are confident that it is not coming into effect now, 2026 will be here before we know it and employers should prepare for the vast number of changes that are on the horizon. Statutory Sick Pay from day one, removal of 24 months service for protection on unfair dismissal and a tougher approach to the management of zero hour contracts will affect businesses significantly and there are ways you can get prepared now.
As always you are not alone when it comes to navigating employment law and managing employees. SliceHR are here to support you!