Whilst last week it looked like spring had definitely sprung, this week it looks like winter is back so the coats and hats are staying. In the world of HR though, April means employment law updates and in this case, it means an update to statutory rates.
So, what’s happening?
In short, everything’s going up! Here is a quick statutory rates update which comes into force in April 2021:
Minimum wage hourly rates increasing from 1st April
- living wage rate for workers over 23 goes up from £8.72 to £8.91 – please note this is now effective over 23 instead of 25 as previously.
- rate for workers aged 21 –22 goes up from £8.20 to £8.36
- rate for workers aged 18 – 20 (goes up from £6.45 to £6.56
- rate for workers aged 16 – 17 goes up from £4.55 to £4.62
- apprenticeship rate (apprentices under 19 or those over 19 and in the first year of their apprenticeship) goes up from £4.15 to £4.30
Statutory Sick Pay (SSP)
From 6th April, there’ll be a small increase in the weekly amount of Statutory Sick Pay which will go up from £95.85 to £96.35.
Statutory leave – pay rates
From 6th April, statutory pay rates go from £151.20 to £151.97 (or 90% of the employee’s average weekly earnings) for the following:
- Statutory maternity pay (SMP)
- Statutory paternity pay (SPP)
- Statutory adoption pay (SAP)
- Statutory shared parental pay (SShP)
Statutory redundancy pay
In the event of making redundancies, there is a statutory maximum weekly rate of pay to use when calculating Statutory Redundancy Pay (SRP). The maximum weekly rate will increase from £538 to £544 this April.
As a business, you may find yourself in a situation of making temporary changes to the workforce such as laying people off or putting them on short time working. In certain situations, employees will receive an amount of guarantee pay. This remains the same from 2020 at £30 per day. If you think this situation might apply to you in the near future, please make sure you have a chat with us as soon as possible.
Unfair Dismissal Awards
For dismissals on or after 6th April which are found to be unfair by a Tribunal, the maximum award will increase to £89,493
If you have questions about any of the above and how these increases affect you, don’t hesitate to get in touch.