April is a busy time of year for businesses with a raft of employment law changes to contend and comply with. And this year is no different. Kate Palmer, Employment Services Director at Peninsula, looks at everything employers need to know.
“As happens most years, from 1 April the National Minimum Wage and National Living Wage rates will increase across the board. The rate that needs to be paid depends on each worker’s age and whether or not they are an apprentice. The new rates will be:
- National Living Wage (21 and over): Increases from £11.44 to £12.21 p/hr
- 18-20-year-olds: Increases from £8.60 to £10.00 p/hr
- 16–17-year-olds: increases from £6.40 to £7.55 p/hr
- Apprentice rate: Increases from £6.40 to £7.55 p/hr
“Just a few days later on 6 April, statutory payments will also increase, with family leave payments such as statutory maternity and paternity pay increasing to £187.18 per week.
“Statutory sick pay will also increase by £2 to £118.75 per week with the lower earnings limit threshold that must be met to be eligible for these payments rising to £125 per week.
“Whilst the statutory sick pay increase is only small, as part of the government’s Employment Rights Bill, there are further proposals to increase the provision of sick pay to workers. Under these proposals, all workers regardless of usual earnings will be entitled to either 80% of their weekly earnings, or the flat rate, whichever is lower from day one of sickness.
“April will also likely see an increase to other payments such as statutory redundancy pay and limits on the amount of compensation a tribunal can award for successful claims, although these have yet to be announced.
“On top of all of this, this year April will see the introduction of neonatal care leave and pay. A brand-new leave entitlement for employees who have a prescribed responsibility for a baby receiving medical care in the early days of their life. This will be accompanied by another brand-new statutory entitlement – neonatal care pay. This will be paid at the same rate as other family leave payments.
“It is crucial that employers understand these changes and are ready to implement them in the required timeframes. Failure to do so could see them at risk of an unlawful deduction of wages tribunal claim and, in the case of National Minimum Wage, enforcement from government agencies which could include fines and public naming and shaming.”
