Since its inception in July 2024, the new Government has introduced reforms to employment law and the obligations of employers.
Following the Autumn Budget, we’re here to update you on the latest employment legislation and upcoming changes to pay entitlements for your employees.
Staying compliant can help to keep your business protected and boost staff satisfaction and retention.
Paying the right wage
One of the Chancellor’s headline announcements in the Budget was a rise from April 2025 in the National Living Wage (NLW).
Currently set at £11.44, the NLW will rise to £12.21 per hour for all workers over the age of 21.
Alongside a rise in the rate of employer National Insurance (NI) to 15 per cent and the halving of the threshold at which this is paid to £5,000, employers are facing rising costs – but these costs must be met to avoid significant legal challenges.
Statutory payments
Beyond minimum rates of pay, changes have been made to the rights of employees to access statutory pay.
Statutory Sick Pay (SSP), payable if an employee has been too ill to work for three or more days in a row, has risen to £116.75, for up to 28 weeks.
Additionally, the Employment Rights Bill would extend the right to Statutory Paternity Pay and Leave to all employees as a day-one right.
You must make these payments to all qualifying employees, so you could see costs rise to remain compliant with the latest legislation.
Planning ahead
The Employment Rights Bill is currently at Committee Stage in the House of Commons, meaning it is still some way off becoming law.
This is the time for employers to be planning to:
From a legal perspective, compliance must take priority over cutting costs.
However, we understand the difficulties of increasing costs, so we can advise you on how to meet your obligations while keeping costs to a minimum and ensuring you are not over- or under-staffed.
Need bespoke employment law advice? Contact our team today.
