Each year in April, employment law sees changes – some big and some small. Here are the changes being introduced in April 2025. Don’t forget to keep an eye on the Employment Rights Act 2026 (currently in Bill form) that proposes to make big changes in 2026!
Redundancies
Since January 2025, there’s been a statutory Code of Practice on Dismissal and Re-engagement that has meant an additional penalty of up to 25% on compensation for failing to comply with the rules on failing to inform and collectively consult on larger redundancies and fire-and-rehire exercises (those that affect 20 or more staff).
April 2025
New statutory rates will come into force, including:
- National Living Wage for over 21’s increases from £11.44 to £12.21 (from May, employers paying the Living wage will need to increase it to £12.60 to stay within the Living Wage rules)
- National Minimum Wage for 18–20-year-olds increases from £8.60 to £10
- National Minimum Wage for 16–17-year- olds increases from £6.40 to £7.55
- Statutory Sick Pay increases from £116.75 to £118.75 per week
- Statutory Maternity Pay and other family related leave pay increases from £184.03 to £187.18 per week
- Lower Earnings Limit increases from £123 to £125 per week.
- the cap on a week’s pay for statutory redundancy pay calculations increases from £700 to £719
- The limit on compensatory awards for unfair dismissal increases from £115,115 to £118,223
New rules about pregnancy-related problems
Neonatal care leave and pay comes into force in April 2025 – affecting staff with babies in hospital for up to a week in their first month of life. Previously, staff could only have unpaid time off to care for a dependant.
Vento guidelines updated
- a lower band of £1,200 to £12,100 (was £11,799) for less serious cases;
- a middle band of £12,100 to £36,400 (was £35,200) for more serious cases that do not merit an award in the upper band); and,
- an upper band of £36,400 to £60,700 (was £58,700) for the most serious cases. Only the most exceptional cases capable of exceeding £60,700.