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LEGAL UPDATE - four April changes you should know about...

There are a few important employment law changes afoot this April.

Here’s a bite-sized summary of what you need to know…

1. Neonatal care rights 

The Neonatal Care (Leave and Pay) Act 2023 introduces two new statutory rights: neonatal care leave and neonatal care pay. 

It’s a brand new law intended to help parents of sick babies, and it comes into force on 6 April 2025.  

Here’s the lowdown…

Who qualifies?

Parents of babies admitted to neonatal care for at least 7 days (within the first 28 days following birth) will be eligible for additional leave.  It is a “day 1” right, so it applies from the first day of employment. 

How much leave?

The entitlement is to one week’s leave for every week the baby is in neonatal care - up to a maximum of 12 weeks. That’s in addition to other leave entitlements, such as maternity and paternity leave.  

What about pay? 

Those parents with 26 weeks’ continuous service will also be entitled to statutory neonatal care pay. That’s payable at the same rate as other statutory family-related pay.  

So as of 6 April 2025:  

  • £187.18 per week; or
  • 90% of the employee’s normal weekly earnings (if less than £187.18 a week). 

For more information or help with putting in place appropriate policies, do get in touch.

2. National Minimum Wage rates

With effect from 1 April 2025, the hourly rates of the National Minimum Wage will change to: 

  • £12.21 - for workers aged 21 and over (increased from £11.44);
  • £10.00 - for 18-20 year-olds (increased from £8.60); and
  • £7.55 - for 16-17 year-olds and apprentices (increased from £6.40)
  • £7.55 - for apprentices (increased from £6.40).

The maximum offset accommodation limit will increase to £10.66 per day (from £9.99).

3. National Insurance rates and thresholds

From 6 April 2025, the following changes will be made to National Insurance Contributions (‘NICS’) rates and thresholds:

  • the rate of secondary Class 1 employer NICs will increase from 13.8% to 15%; and
  • the threshold at which employers become liable to pay secondary Class 1 NICs on employees’ earnings will be reduced from £9,100 to £5,000 per employee.

Quite a big hit on employers, which appears to run contrary to the government’s stated aim of economic growth. 

On the flip side, the employment allowance will be raised from £5,000 to £10,500.  That’s the annual allowance that eligible employers (e.g. charities and small businesses) can offset against their employer NIC liability.

4. Other rates and limits: 

From 6 April 2025 the following rates will apply: 

  • statutory family-related pay - £187.03 (increased from £184.03);
  • statutory sick pay - £118.75 (increased from £116.75);
  • maximum compensatory award for unfair dismissal - £118,223.00 (from £115,115.00); and
  • the statutory cap on a week’s pay - £719.00 (increased from £700.00) 

So there’s plenty going on.  Hopefully this summary helps you stay ahead of it…

For more information and/or for support on preparing for these changes, please contact: john.skelly@skelly.co.uk

The above is intended as general commentary only and is not a substitute for specific legal advice. It relates to the law of England and Wales only and to no other jurisdictions.

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