Spring is a season of renewal, and for HR professionals, it’s the perfect time to refresh policies, update payroll systems, and prepare for upcoming legislative changes. If you missed our Annual Employment Law Conference, don’t worry! We’ve put together a comprehensive HR Spring Checklist to help you stay ahead of key updates coming into effect this April.

1. National Living Wage Increase

From 1 April 2025, the National Minimum Wage and National Living Wage rates will change. It’s essential to update your payroll processes and review staff contracts to ensure salaried employees are not inadvertently earning below the new minimum wage threshold.

2. Neonatal Care Leave

The Neonatal Care (Leave and Pay) Act 2023 comes into effect on 6 April 2025. Eligible employees will be entitled to 12 weeks of neonatal care leave and pay in addition to existing maternity and paternity entitlements.

Key details:

• Applies to children born on or after 6 April 2025.
• Covers parents of babies admitted to neonatal care within 28 days of birth for 7 consecutive days or more.
• Statutory Neonatal Care Leave is a day-one right for employees.
• Statutory Neonatal Care Pay: £187.18 per week or 90% of average weekly earnings (whichever is lower).
• Employees must have 26 weeks’ continuous service at the relevant date and meet the lower earnings limit to qualify for pay.

Employers should update their Neonatal Care Leave policies in line with these mandatory changes. If you need a policy template, contact us today [email protected].

3. Employment Rights Bill

The Government introduced the Employment Rights Bill in October 2024, which is expected to bring significant changes to employment law. The Bill is still in progress, with implementation unlikely before 2026. While no immediate changes are required, employers should monitor developments and consider how potential reforms may impact workplace policies.

4. Employers’ National Insurance Contributions (NIC) Increase

From April 2025:

• NIC rate increases from 13.8% to 15%.
• The threshold for employer NIC payments on employees’ earnings will decrease from £9,100 to £5,000.
• The employment allowance will increase from £5,000 to £10,500, benefitting only the smallest employers.

These changes will increase payroll costs, particularly for SMEs. Businesses may need to adjust their workforce strategies to manage this additional financial burden effectively.

5. Statutory Pay Rates Update

Effective 6 April 2025, the following statutory payments will increase:

• Statutory Sick Pay (SSP): £118.75 per week.
• Statutory Maternity, Paternity, Adoption, Shared Parental, and Parental Bereavement Pay: £187.18 per week.
• Lower Earnings Limit: Rises from £123 to £125 per week.

Employers should ensure payroll systems are updated and managers are briefed on these changes to handle queries confidently.

6. Redundancy Pay & Employment Tribunal Award Increases

From 20 January 2025, tribunals can award a 25% uplift for failure to comply with the statutory Code of Practice on dismissal and re-engagement. HR teams and managers must be trained on these updates to mitigate legal risks during restructuring and redundancy exercises.

Additionally, Employment Tribunal compensation caps will increase on 6 April 2025.

How Bhayani Law Can Help

At Bhayani Law, we specialise in HR and employment law, helping businesses stay compliant and navigate employment law changes with confidence. Our expert team can assist with:

• Updating contracts & policies
• Providing legal compliance training for HR teams
• Redundancy planning
• Defending businesses in Employment Tribunals

If you need expert advice on these updates, contact us at 0333 888 1360 or email us at [email protected] for tailored support.

Stay compliant, protect your business, and ensure your HR processes are up to date with Bhayani Law.