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Employment Update – April 2025

As HR teams are aware, April marks a period of change in the employment law calendar. Below, we outline the key employment updates that businesses should take note of this year.

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Published 1 April 2025

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Employment Update – April 2025:

As HR teams are aware, April marks a period of change in the employment law calendar. Below, we outline the key employment updates that businesses should take note of this year.

Neonatal Leave and Pay

  • The new Neonatal Care (Leave and Pay) Act 2023 grants parents the right to take up to 12 weeks’ leave if their newborn baby requires neonatal care. This is a day one right for employees whose child is born on or after 6 April 2025 and where the child requires at least seven consecutive days of neonatal care within the first 28 days of their life. This right may be taken in addition to existing parental leave entitlements for example maternity or adoption leave.
  • Eligible employees will be entitled to receive statutory neonatal care pay during any period of statutory neonatal care leave (see Statutory Rates below).

National Minimum Wage

  • From 1 April 2025, the new National Minimum Wage and National Living Wage (for those aged 21 and over) rates are:
    • Ages 21 and over: £12.21 per hour (up from £11.44)
    • Ages 18-20: £10.00 per hour (up from £8.60)
    • Ages 16-17 and apprentices: £7.55 per hour (up from £6.40)

Statutory Rates

  • From 6 April, we will see the following increases to statutory rates of pay:
Statutory Sick Pay 118.75 per week (up from £116.75).

 

The earnings threshold will also increase to £125 per week (from £123).

Family Leave including:

Statutory maternity and adoption pay (after the first 6 weeks), as well as paternity, shared parental, parental bereavement and neonatal care pay

 

£187.18 per week (up from £184.03).

 

Again, the earnings threshold will also increase to £125 per week (from £123).

The limit on a week’s pay for calculating statutory redundancy payments

 

£719 (up from £700).

 

The maximum compensatory award for unfair dismissal

 

£118,223 (up from £115,115)

 

What steps employers need to take:

  • Draft and implement a new policy setting out the right for employees to take Neonatal Care Leave and Pay.
  • Provide training to HR and managers on the new statutory right to take Neonatal Care Leave.
  • Ensure all employees are currently receiving the correct rate of pay.
  • With substantial changes on the horizon as a result of the Employment Rights Bill, employers should also be considering what changes they might need to implement to be prepared.
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Shorter Reads

Employment Update – April 2025

As HR teams are aware, April marks a period of change in the employment law calendar. Below, we outline the key employment updates that businesses should take note of this year.

Published 1 April 2025

Associated sectors / services

Authors

Employment Update – April 2025:

As HR teams are aware, April marks a period of change in the employment law calendar. Below, we outline the key employment updates that businesses should take note of this year.

Neonatal Leave and Pay

  • The new Neonatal Care (Leave and Pay) Act 2023 grants parents the right to take up to 12 weeks’ leave if their newborn baby requires neonatal care. This is a day one right for employees whose child is born on or after 6 April 2025 and where the child requires at least seven consecutive days of neonatal care within the first 28 days of their life. This right may be taken in addition to existing parental leave entitlements for example maternity or adoption leave.
  • Eligible employees will be entitled to receive statutory neonatal care pay during any period of statutory neonatal care leave (see Statutory Rates below).

National Minimum Wage

  • From 1 April 2025, the new National Minimum Wage and National Living Wage (for those aged 21 and over) rates are:
    • Ages 21 and over: £12.21 per hour (up from £11.44)
    • Ages 18-20: £10.00 per hour (up from £8.60)
    • Ages 16-17 and apprentices: £7.55 per hour (up from £6.40)

Statutory Rates

  • From 6 April, we will see the following increases to statutory rates of pay:
Statutory Sick Pay 118.75 per week (up from £116.75).

 

The earnings threshold will also increase to £125 per week (from £123).

Family Leave including:

Statutory maternity and adoption pay (after the first 6 weeks), as well as paternity, shared parental, parental bereavement and neonatal care pay

 

£187.18 per week (up from £184.03).

 

Again, the earnings threshold will also increase to £125 per week (from £123).

The limit on a week’s pay for calculating statutory redundancy payments

 

£719 (up from £700).

 

The maximum compensatory award for unfair dismissal

 

£118,223 (up from £115,115)

 

What steps employers need to take:

  • Draft and implement a new policy setting out the right for employees to take Neonatal Care Leave and Pay.
  • Provide training to HR and managers on the new statutory right to take Neonatal Care Leave.
  • Ensure all employees are currently receiving the correct rate of pay.
  • With substantial changes on the horizon as a result of the Employment Rights Bill, employers should also be considering what changes they might need to implement to be prepared.

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