Urgent: Key Employment Law Changes Coming in April 2025 – Employers Must Take Action Now!"

As of April 2025, significant changes to employment law will take effect, and employers must take immediate action to ensure compliance. These new regulations are set to impact everything from employee rights and benefits to workplace policies. Failing to adapt could result in legal challenges and costly penalties. In this update, we’ll break down the key changes employers need to know and how to prepare ahead of the upcoming deadline. Stay informed and protect your business by taking the necessary steps now.

1. National Minimum Wage Increases

Effective from 1 April 2025, the National Minimum Wage rates will be elevated to address the ongoing cost of living crisis and projected inflation trends. The updated rates are:

• Workers aged 21 and over: £12.21 per hour     (previously £11.44)
• Ages 18 to 20: £10.00 per hour (up from £8.60)
• Under 18 and apprentices: £7.55 per hour (increased     from £6.40)

Employers must ensure that payroll systems are updated to reflect these changes and that all staff are compensated accordingly to avoid potential wage disputes and penalties.

2. Changes to National Insurance (NI)Contributions

From 6 April 2025, significant changes to National Insurance contributions (NICs) will take effect.  This will raise the rate of national insurance paid by employers in 2025 by 1.2% and means businesses will now pay a rate of 15%.

In addition, the threshold at which businesses are required to pay national insurance on workers earnings has dropped from £9,100 to £5,000.

Employers should ensure payroll systems are updated and employees are informed of the changes, which could impact net pay calculations and payroll reporting obligations.

3. Statutory Sick Pay and Family-Related Benefits

From April 2025, the right to Statutory Sick Pay will be a Day one right.  There will be no more waiting days to qualify for this!

From 6 April 2025, Statutory Sick Pay (SSP) will increase to £118.75 per week, up from £116.75. Additionally, statutory rates for maternity, paternity, adoption, and shared parental pay will increase to £187.18 per week.

Employers should adjust their policies and payroll processes to align with these new rates, ensuring that employees receive their entitlements during periods of leave.

4. Neonatal Care Leave and Pay

The Neonatal Care (Leave and Pay) Act 2023will come into effect on 6 April 2025. This legislation introduces a "day one" right for parents whose babies require neonatal care. Eligible employees are entitled to up to 12 weeks of neonatal care leave, in addition to existing parental leave rights.

To qualify for statutory neonatal care pay, employees must have at least 26weeks of continuous service and meet the lower earnings limit.

Employers should update their leave policies and inform staff about this new entitlement to ensure compliance and support affected employees.

For our wonderful HR Pulse clients, we offer a suite of easy-to-use tools and HR documents, which includes policies, letters and forms, to help people managers navigate these challenges while staying compliant and efficient. Our solutions streamline HR processes, ensuring your organisation remains ahead of regulatory changes while freeing up your time to focus on growing your business.

If you’re not yet one of our clients and want to learn more about how we can help you design a tailored people management solution, click on the "GET IN TOUCH" button above for more information!

‍