Employment Law Update – April 2025.

Changes to Employment Law with Updates to the National Living Wage and Statutory Sick Pay (SSP).

Changes to Employment Law

As you may or may not be aware, changes in Employment Law are coming into effect on 1^st April 2025 with regards to the National Living Wage and changes to Statutory Sick Pay (SSP) come into effect on 6^th April 2025.

National Living Wage

This change will involve a National Living Wage increase to £12.21 per hour.

18 – 20 year olds:          rate will increase to £10 per hour

16 – 17 year olds:          rate will increase to £7.55 per hour

Apprentices:                 rate will increase to £7.55 per hour

Statutory Sick Pay (SSP)

This change will involve SSP increasing to £118.75 per week; Statutory Maternity Pay (SMP) and other family leave payments including statutory paternity pay etc will increase to £187.18 per week. Lower Earnings Limit will increase to £125 per week.

New Obligations for Employers:

• Review employment contracts
• Update payroll systems to reflect new rates to prevent accidental underpayment
• Assess and monitor pay structures as well as considering adjustments to maintain fair pay differentials
• Fully brief and provide training to payroll teams about the changes with access to updated resources
• Implement regular wage audits, to identify underpayment issues and ensuring all employees are paid above the new NLW.

In line with these new changes, we strongly advise you to review your contracts to reflect the updated NMW rates, especially for part-time, temporary, and younger workers.

Accurate hourly rates for each age group are essential.

The Cost of Non-Compliance 

Failing to meet NMW standards can lead to costly penalties, including:

• Fines of up to 200% of underpayments, capped at £20,000 per worker.

• Government “naming and shaming” for serial offenders.

• Employment Tribunal claims where workers seek back pay or compensation.

To avoid these risks, employers should ensure that their HR Policies and Procedures are up to date.

If you have any queries regarding this guidance and how we can help please get in touch at: hrteam@amicahr.co.uk

Don't forget that we offer a free 30 minute consultation to see how we can best help you and your business!