You will no doubt already be aware that this April will see some changes for employers in terms of pay. This includes changes in limits to
• Compensation for unfair dismissal
• Redundancy pay
• National minimum wage
• Statutory sick pay
• Statutory family leave pay.
It’s essential that as an employer, you are aware of these changes, to ensure that you are offering your staff exactly what they’re entitled to. People Matters HR have put together a guide detailing all the key areas of change, so that you can be confidence you can make all the correct changes.
National minimum wage:
From 1 April 2021, the following minimum rates of pay will apply:
The National Living Wage, which currently applies only to workers age 25 or over, will be extended to 23 and 24 year olds for the first time:
The National Living Wage for ages 23+ – £8.91 (up 2.2%)
The National Minimum Wage for:
o 21 to 22-year-olds – £8.36 (up 2%)
o 18 to 20-year-olds – £6.56 (up 1.7%)
o Under-18s – £4.62 (up 1.5%)
o For apprentices – £4.30 (up 3.6%)
The value of a number of employment claims, including statutory redundancy pay, are calculated by reference to an employee’s weekly pay. This weekly pay is itself subject to a cap of a prescribed amount.
From 6 April 2021, the prescribed cap on weekly pay will increase to £544. Consequently, statutory redundancy pay will increase, with the maximum payment increasing to £16,320.
Compensation for unfair dismissal:
Compensation for unfair dismissal claims is split into two: The basic award is calculated in the same way as statutory redundancy pay and will, therefore, increase as described above.
The compensatory award is calculated by reference to the claimant’s loss of earnings, and is subject to a statutory cap. This cap on the compensatory award for ordinary unfair dismissal claims will increase as of 6 April 2021 to £89,493 (or 52 weeks’ gross actual pay, if lower). These new figures will apply where the effective date of termination falls on or after 6 April 2021.
Statutory sick pay (SSP):
From 4 April 2021 statutory sick pay will increase to a rate of £96.35 per week.
Statutory family-related leave:
The prescribed rate for statutory maternity pay, adoption pay, paternity pay and shared parental pay will increase as of 4 April 2021 to £151.97 per week. The new right to statutory parental bereavement pay will also be paid at £151.97 per week.