Employment Law April 2025 for Business Leaders and Hiring Managers

Is your business ready?

As of April 2025, several important employment law changes will take effect in the UK. HR professionals and business leaders should ensure they are fully prepared for these updates to remain compliant and support their workforce effectively.

Key Employment Law Changes in April 2025:

1. National Minimum and Living Wage Increases

The National Living Wage and National Minimum Wage rates will increase across all age groups. Employers must ensure their payroll systems are updated and that all employees are paid in line with the new rates.

Action Required: Review payroll and budgeting to accommodate the increased wage costs and communicate changes to employees.

2. Increased Redundancy Pay Thresholds

The calculation for statutory redundancy pay will see an increase in the maximum weekly wage that can be used in redundancy calculations. Additionally, tribunal compensation limits will also rise.

Action Required: Employers should update redundancy policies and review ongoing or planned redundancy processes to reflect the new rates.

3. Statutory Family-Related Pay Adjustments

Statutory maternity, paternity, adoption, and shared parental pay rates will increase. The same applies to statutory sick pay.

Action Required: HR teams should update their policies and payroll systems to ensure compliance with the new statutory rates.

4. Changes to Holiday Pay for Irregular Hours and Part-Year Workers

Workers on irregular hours or part-year contracts will have a new method for calculating holiday entitlement, aimed at ensuring a fairer approach.

Action Required: Employers should review how holiday pay is calculated for affected employees and make necessary adjustments to their payroll and leave management systems.

Looking Ahead: The Employment Rights Bill

The Employment Rights Bill is currently under consultation and could introduce further changes in the future.

Potential updates being considered include:

• Strengthened protections for workers on zero-hours contracts
• Stricter regulations around redundancy consultations
• Enhanced safeguards against ‘fire and rehire’ practices

Businesses should stay informed and prepared for any further legislative developments.

For full details on upcoming employment law changes, visit gov.uk.