Employment law is constantly changing. It’s hard to keep up, but it’s crucial you do – especially as there are new statutory rates coming into force this April to reshape workplace protections for employees.
To make things simple, we’ve summarised the key changes. This will tell you what actions you must take, when and how as a compliant and caring employer.
1 April – National Minimum Wage increase
No matter the age of your employee or apprentice, if you pay them the minimum hourly rate, that rate will rise at the start of April. The increases mean the minimum hourly rates will be:
● National Living Wage: £12.21
● 18–20 year olds: £10
● 16–17 year olds: £7.55
● Apprentices: £7.55
This is a relatively large annual increase in rates. So it’s even more important to make sure you’re completely prepared and paying your team what they’re legally owed.
6 April – Neonatal Care (Leave and Pay) Act 2023
This brand-new – and much-needed – act comes into force this year, to support employees who are responsible for children receiving neonatal care. Here are the facts you need to know:
● Statutory Neonatal Care Leave (SNCL) is a day-one right, so employees are eligible for leave from the moment they begin working with you.
● Statutory Neonatal Care Pay (SNCP) has a different qualification threshold. Employees must be employed for a minimum of 26 weeks prior to requesting SNCP. They must earn an average of at least £125 a week (mirroring maternity leave entitlement).
● You must give a parent 12 weeks’ paid leave if their baby is admitted to hospital. The paid leave must be taken in the first 68 weeks following the baby’s birth.
● The baby must be admitted to neonatal care within the first 28 days of birth, and stay continuously for 7 days or more.
● SNCP is in addition to other maternity, paternity and shared parental leave entitlements.
6 April – Statutory Sick Pay (SSP)
● SSP will rise to £118.75 per week.
6 April – Lower Earnings Limit
● The threshold for employees to qualify for all above payments will increase to £125 per week (before tax).
● (The threshold for maternity allowance will stay at £30 per week.)
7 April – Statutory Maternity Pay and other family-related leave pay
● Statutory maternity, adoption, paternity, shared parental, and statutory parental bereavement pay, and maternity allowance, will rise to £187.18 per week.
Concerned about the changes?
That’s understandable. Though acting accordingly makes sure you’re doing your duty as an employer, rate increases and policy changes often worry vulnerable, smaller businesses.
Remember, most employers will still be able to reclaim 92% of the cost of their workers’ statutory pay for family-related leave, such as maternity and paternity. This, together with the increase in employment allowance to £10,000, will help ease the impact.
More changes are on the horizon, including the Employment Rights Bill update. Yet most won’t happen until 2026, so there’s time to get everything sorted.
We’ll keep you updated, and we’re here to help. For advice, support and to make sure you’re planning ahead, get in touch with lucy@mcmillanandassociateshr.com.