Employment law changes in April 2025: what it means for employees
April 2025 brings some important changes to employment law, including the introduction of a new right for parents. So let’s find out what you need to know and how these changes may affect you.
The National Minimum Wage
From 1 April 2025, the National Minimum Wage is:
- £7.55 for those aged 16-17
- £10.00 for those aged 18-20
- £12.21 for those aged over 21 (also known as the National Living Wage)
For an eligible full time worker earning the National Living Wage, this represents an increase of £1,400 per year.
Apprentices in their first year must be paid a minimum of £7.55 per hour, regardless of their age. Once an apprentice has completed their first year, they are entitled to the National Minimum Wage for their age. So, if you’re an apprentice or a minimum wage earner, make sure your pay has been increased accordingly.
Statutory sick pay
From 6 April 2025, the rate of statutory sick pay (SSP) increases from £116.75 to £118.75 per week. To qualify for SSP you have to earn £125 or more per week (an increase of £2).
The Employment Rights Bill proposes to expand access to SSP some time in 2026. Why not sign up to our newsletter and we’ll keep you posted on developments.
Injury to feelings awards (Vento bands) increase
Vento bands are guidelines used by Employment Tribunals in discrimination and whistleblowing cases to determine the value of an award to an employee who has suffered injury to feelings. For claims presented on or after 6 April 2025, the bands increase to:
- A lower band of £1,200 - £12,100
- A middle band of £12,100 - £36,400
- An upper band of £36,400 - £60,700
It takes bravery and strength to speak out against acts of discrimination or wrongdoing. We can support you through the process. Get in touch at [email protected] or book time with one of our legal experts.
Increase on weekly pay cap
A number of types of compensation (in particular statutory redundancy pay and the basic award for unfair dismissal) are calculated with reference to gross weekly pay. That weekly pay is capped at a particular amount. From 6 April 2025, the cap increases from £700 to £719. This takes the maximum statutory redundancy payment to £21,570.
Unfair dismissal award
If your unfair dismissal claim is successful, you will receive a ‘basic award’ (a fixed sum based on your age, length of service and gross weekly pay) and a ‘compensatory award’ (to cover your financial loss). The cap on the compensatory award for unfair dismissal applies in all unfair dismissal claims, not just in some cases (although it doesn't apply if what's being claimed about is actually discrimination). From 6 April 2025, the unfair dismissal compensatory award cap has increased to £118,223 or 52 weeks' gross pay, whichever is the lower.
If you think you have an unfair dismissal case against your employer, it’s important to gather evidence of the facts which will support your claim. We can help you to organise and present that information to a tribunal.
Statutory Maternity Pay and family friendly payments
From 7 April 2025, the weekly rate of Statutory Maternity Pay increases from £184.03 to £187.18 (or 90% of your average weekly earnings, whichever is the lower). This increase also applies to Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay. The minimum weekly pay required to qualify for these payments also increases from £123 per week to £125 per week.
Employers’ National Insurance Contributions
Perhaps the change which has attracted the most media attention is the increase in employers’ National Insurance Contributions (NICs). From 6 April 2025, the amount of employers’ NICs increases from 13.8% on earnings above £9,100 per year to 15% on earnings above £5,000 per year. This won’t affect the pay you receive because employee’s NICs are not increasing.
There is a concern that the increase in payroll costs for employers (particularly in relation to lower paid positions) may result in redundancies.
Find out about your rights if you’re made redundant at work.
Neonatal care leave: a new right for parents
The Neonatal Care (Leave and Pay) Act 2023 comes into effect on 6 April 2025. The legislation establishes new rights for parents of babies who receive neonatal care. This is expected to benefit tens of thousands of new parents, supporting families through the most challenging of times.
What does the law say?
If your child receives neonatal care for 7 consecutive days, within the first 28 days of their life, you may be entitled to up to 12 weeks of additional leave to care for your child.
You must give your employer notice that you are claiming neonatal leave. The amount of notice required will depend upon when you take your leave. Your employer should be sensitive and flexible in their approach.
What is neonatal care?
Neonatal care is not only care given to a child in a hospital. It can include care at home following a stay in hospital if that care is directed by a consultant and includes ongoing visits from a hospital representative. Neonatal care includes palliative care.
Who is eligible?
The right to neonatal leave applies to anyone with the legal status of employee from the first day of employment. It extends to fathers, same sex partners of birth parents, adoptive parents and intended parents in a surrogacy. Each eligible parent is entitled to neonatal leave in addition to any maternity, paternity, shared parental or adoption leave.
How much leave am I entitled to?
Eligible parents are entitled to 1 week of leave for each whole week their child receives neonatal care, up to a maximum of 12 weeks. Parents can only take leave once their child has been receiving neonatal care for 7 consecutive days (commencing from the day after care starts). Leave must be taken within 68 weeks from the date of the child’s birth.
Will I be paid during my neonatal leave?
If you claim neonatal care leave, you may also be eligible to claim neonatal care pay. You must have completed 26 weeks of continuous service before the ‘relevant week’. If you’re also claiming Statutory Maternity / Paternity Pay, the relevant week will be the 15th week before the baby’s due date.
For Statutory Adoption Pay, the relevant week is when you are notified of being matched with a child. You must have earned an average of at least £125 per week for 8 weeks before the relevant week and serve notice on your employer.
Neonatal care pay is £187.18 per week or 90% of your average weekly earnings, whichever is the lower.
Someone with the legal status of worker who is not eligible for neonatal care leave may still be eligible for neonatal care pay.
Find out more about new neonatal care rights.
