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Toggle2025 is already in full swing, but it also brings critical employment law updates.
Here’s a summary of the key dates to help ensure your team is prepared.
30 March / 4 April: Gender pay gap reporting deadlines
Organisations must publish their gender pay gap reports within 12 months of the snapshot date:
- Public sector: Deadline is 30 March 2025 (snapshot date: 31 March 2024).
- Private and voluntary sectors: Deadline is 4 April 2025 (snapshot date: 5 April 2024).
Reports must be published on the organisation’s website and the GOV.UK gender pay gap reporting portal. Employers may include a narrative to explain the gap and outline measures to address it.
1 April: National Minimum Wage increases
New national minimum wage rates take effect from 1 April 2025:
- Aged 21 and over (National Living Wage): £12.21 (up from £11.44)
- Aged 18-20: £10.00 (up from £8.60)
- Under 18: £7.55 (up from £6.40)
- Apprentices: £7.55 (up from £6.40)
Employers must review pay rates and adjust remuneration for the first pay reference period beginning on or after this date.
6 April: Updates to Statutory Pay and Redundancy Pay
- Family-Related and Sick Pay increases:
- Statutory maternity, adoption, paternity, shared parental, and parental bereavement pay rises to £187.18 (from £184.03).
- Statutory sick pay increases to £118.75 (from £116.75).
- Redundancy Pay calculations:
- The weekly pay cap for statutory redundancy pay will increase (current cap: £700). The new limit will be announced in the Employment Rights (Increase of Limits) Order 2025. Ensure redundancy payments for dismissals after this date align with the updated cap.
All Year Round: Stay alert to Employment Law developments
- Employment Rights Bill:
This major legislation is expected to bring extensive changes to employment law. It is currently in the Committee stage and may receive Royal Assent by summer 2025. Implementation will follow after supporting regulations are introduced. - Equality (Race and Disability) Bill:
The draft legislation, expected in 2025, proposes extending pay gap reporting to include ethnicity and disability for employers with 250+ employees. - Pending Acts:
- Neonatal Care (Leave and Pay) Act 2023: Provides parents with up to 12 weeks of neonatal care leave from day one of employment.
- Paternity Leave (Bereavement) Act 2024: Offers two weeks of paternity leave as a day-one right for bereaved partners.
Both Acts may see further developments in 2025 under the Labour Government.
Next steps:
- Review pay rates and adjust them in line with the new minimum wage.
- Ensure statutory pay and redundancy calculations comply with updated rates.
- Prepare and publish gender pay gap reports by the relevant deadlines.
- Monitor the progress of key bills and adjust policies as new legislation takes effect.
Stay proactive to meet these critical compliance requirements and support your workforce effectively.
At mywage, we’re here to help businesses stay ahead of compliance with intuitive tools and expert guidance. Book a free demo today to see how!