Here’s what you need to know:

Statutory Rate Increases (April 1 & 6, 2025)

What’s Changing?

• National Minimum Wage & National Living Wage rates increase from April 1.
• Other statutory payments increase from April 6, including:
  • National Insurance Contributions
  • Statutory Sick Pay (SSP)
  • Statutory Maternity, Paternity, Shared Parental, Adoption & Bereavement Pay

What Should Employers Do?

✅ Update payroll systems to reflect the new rates. ✅ Ensure compliance with statutory wage obligations.

Compensation Limits Increase (April 6, 2025)

What’s Changing?

• Unfair dismissal & redundancy award limits increase.

What Should Employers Do?

✅ Update internal guidance on legal risks and compensation calculations. ✅ Ensure HR teams are aware of the new compensation thresholds.

Immigration Fee Increases (April 9, 2025)

What’s Changing?

• Various immigration fees are increasing, with some rising by 5-10%.
• Skilled Worker Visa sponsorship certificate costs increase by 120%.

What Should Employers Do?

✅ Employers planning to apply for a Certificate of Sponsorship should do so before April 9 to avoid higher fees. ✅ Budget for increased costs when hiring overseas workers.

Neonatal Care Law (April 6, 2025)

What’s Changing?

• Employees will be entitled to Neonatal Care Leave and Pay if their baby is born on or after April 6, 2025.
• Claims for leave/pay can start from April 14 (after meeting the qualifying period).

What Should Employers Do?

✅ Update HR policies and payroll systems to include the new statutory right. ✅ Provide training and guidance for managers.

Employment Rights Bill (ERB) – Key Amendments

The ERB is introducing several amendments that could significantly impact employment practices. Here are the most critical changes:

Agency Workers (Zero Hours Contracts)

• Agency workers will now have rights to:
  • Guaranteed hours
  • Reasonable notice of shifts
  • Compensation for last-minute changes

Collective Consultation – Redundancy

• The threshold for collective consultation will now apply to 20+ workers at one establishment OR a certain percentage of employees across the company.
• Further legislation will clarify how this works in practice.

Protective Award (Collective Redundancy)

• Employers who fail to comply with collective consultation rules could now face tribunal penalties increasing from 90 to 180 days’ pay.

Fire & Rehire

• ‘Fire and rehire’ dismissals will be deemed automatically unfair if the employee (or someone else) is re-engaged to perform the same or similar work.

Enforcement Powers – Fair Work Agency (FWA)

• The FWA will have expanded authority, including:
  • Bringing tribunal claims on behalf of workers.
  • Offering legal assistance, with costs recoverable from employers.
  • Pursuing up to six years’ worth of underpayments (e.g., holiday pay, sick pay), with additional penalties for non-compliant employers.

Flexible Working Requests

• Employers may withhold certain reasons for refusing a flexible working request if the refusal relates to national security.

Statutory Sick Pay (SSP) Changes

• Employees earning below the Lower Earnings Limit will now be eligible for SSP at 80% of their normal weekly earnings.

Unfair Dismissal & Detriment

• Probation periods will now be included in the reference period for calculating detriment rewards, rather than being excluded or calculated at a lower rate.

Working Time Records

• Employers will be required to retain annual leave and pay records for six years.

How to Prepare?

Employers should: ✅ Update HR policies and payroll systems. ✅ Train managers on the new laws and employee rights. ✅ Stay informed on further developments within the Employment Rights Bill.

By taking proactive steps now, businesses can avoid legal risks and ensure smooth transitions when the new laws take effect.

Need help preparing for these changes? Give the Breathing Space team a call!