Big Employment Law Changes Are Coming for UK Employers in April 2025: Is Your Business Ready?
- Joanna Breen FCIPD
- Mar 31
- 4 min read
If you run a small or medium-sized business, it might feel daunting to keep up with every tweak in legislation, especially when it comes to employment law. Here at Breen & Associates - Results Through People, our goal is to help you stay on top of these changes so you can support your team, remain compliant and ultimately focus on what you do best: running and growing your business.
In April 2025, several key updates will come into effect that will impact everything from your payroll to your employee benefits packages. Below, we break down what’s changing and how you can get ready.
New Minimum Wage Rates (From 1 April 2025)
The first major update arriving in April is an increase to the National Minimum Wage and the National Living Wage. Starting from 1 April 2025:
National Living Wage (for those aged 23 and over): £12.21 per hour
18–20-year-olds: £10.00 per hour
16–17-year-olds & Apprentices: £7.55 per hour
This change means you’ll need to review your budgets and pay scales to ensure your business can comfortably meet these new rates. It’s not just about adjusting wages for entry level roles as remember that existing staff, particularly those on the cusp of age brackets, must also be correctly transferred to higher rates. Proper planning now can help you avoid any nasty surprises when the new rates officially land.
Revised Statutory Payments (From 6 April 2025)
On 6 April 2025, a further set of changes will take effect, affecting statutory sick pay and family leave entitlements:
Statutory Sick Pay (SSP): £118.75 per week
Statutory Maternity, Paternity & Other Family Leave Pay: £187.18 per week
Lower Earnings Limit (LEL): £125 per week
These figures have a direct impact on your payroll expenses. Make sure your finance and HR teams have the latest information and factor these new rates into your forecasts. If you outsource your payroll, double check that your provider is aware of the changes and will update your systems accordingly. Failure to do so could not only hurt your cash flow projections but might also lead to compliance issues down the line.
Neonatal Care Leave and Pay
Under the Neonatal Care (Leave and Pay) Act 2023, parents whose babies are admitted to hospital before they’re 28 days old and remain there for at least one week can take up to 12 additional weeks of neonatal leave. This leave is paid at the statutory rate, on top of any existing maternity or paternity entitlements.
Why does this matter? Because it expands the scope of family friendly policies that SMEs need to account for. You’ll need to ensure that your staff handbooks, contracts and leave policies reflect this benefit and statutory provision. It’s also crucial for managers and HR personnel to understand the details, so they can offer support to new parents during what is likely a very stressful time. By being prepared, your business will project empathy and a commitment to employee well being.
Your Action Plan
Budget & Forecast Start by factoring in the higher wage rates and statutory pay in your financial planning. If you’re concerned about the impact on your bottom line, consider building scenarios around different staffing levels or look at ways to optimise processes to free up resources.
Review Payroll & Policies Update your software, staff handbooks and employment contracts to reflect the new minimum wage, statutory payment rates and neonatal care entitlements. Clear, accurate documentation can help you avoid any confusion or payroll errors.
Train Your Managers Make sure your leadership team understands these legislative updates. That might mean refresher training on leave entitlements and how to handle sensitive conversations around neonatal care leave. Well prepared managers foster trust and ensure compliance is maintained.
Stay Alert
Keep an eye on any further developments under the Government’s Employment Rights Bill. Employment law is always evolving and staying informed is one of the best ways to future proof your business.
How we can help
Navigating the intricacies of employment law can be tricky, especially if you lack a dedicated HR department. We specialise in supporting small businesses and SMEs through comprehensive advice on everything from payroll to compliance audits. Whether you need one-off guidance or ongoing support, our team is here to help.
By taking a proactive approach to these April 2025 changes, you’re not just fulfilling a legal obligation, you’re also safeguarding the future of your business. Offering fair pay and transparent policies boosts employee morale, which in turn can lead to better retention and productivity. It’s a win-win situation.
So, if you have any questions or want to ensure your business is fully prepared, get in touch. We’ll give you the personalised advice you need to stay compliant and support your employees every step of the way.
Keep your HR on Track – Protect Your Business and Drive Growth
We’re Breen & Associates - Results Through People. We empower small businesses & SMEs with personal HR Solutions and transformational People Development. Just like car insurance protects you from the unexpected, our multi-award winning services in HR, Recruitment, People Development and Coaching ensure legal compliance with employment law while turning talent into high-performing teams and driving growth.
Our mission is to give small and medium-sized businesses access to extraordinary HR & People solutions typically reserved for bigger budgets. Unlike larger firms we treat you as partners, genuinely caring about your success and supporting you to achieve exceptional results through your people.
We won’t tie you in lengthy HR contracts that don’t work for you. Unlike Peninsula or Croner who only provide high-level HR advice, we offer dedicated personal 121 support without the price tag! Our Outsourced HR Services Pricing is transparent, flexible and fair – with no lengthy contracts and no cancellation fees.
Discover how to improve legal compliance gaps, reduce risk, enhance your workplace and drive success with our FREE People & HR Audit!
Written by Joanna Breen
Joanna Breen, co-founder of Breen & Associates - Results Through People, is a highly accomplished HR and business leader with over 25 years of experience. As a Fellow Chartered Member of the CIPD (FCIPD), she has excelled in HR strategy, operation and transformational change across diverse industries. Joanna is also a seasoned Corporate and Executive Coach, with over 20 years of experience helping leaders achieve their full potential. With a proven track record advising at board level, she blends strategic expertise with a passion for developing people and driving business success.
Comments