Latest Industry Updates
FIVE EMPLOYMENT LAW CHANGES IN APRIL 2021
- MINIMUM WAGE RATES
The National Living Wage/National Minimum Wage will increase to £8.91 in April 2021 as per the Chancellor’s autumn statement on 25th November 2020. The age at which workers become entitled to National Living
Wage also drops by two years to 23 for the first time.
Workers aged 23: £8.91 an hour (National Living Wage)
Workers aged 21-22: £8.36 an hour
Workers aged 18-20: £6.56 an hour
Young workers aged 16-17: £4.62 an hour
Apprentice rate: £4.30 an hour
- STATUTORY FAMILY AND SICK PAY
The weekly amount for statutory family pay rates is expected to increase to £151.97. This rate will apply to maternity pay, adoption pay, paternity pay, shared parental pay and maternity allowance from 4th April 2021. The weekly rate for statutory sick pay is expected to increase to £96.35.
Statutory Sick Pay (SSP) at present is paid for up to 28 weeks. SSP is currently available to people who are self-isolating, either because they or someone in their household has COVID-19. Outside of this, SSP is available for employees from the fourth day they are sick.
To be eligible for SSP, an employee must earn an average of £120 a week minimum and have been ill, self-isolating or shielding for at least four days in a row (including non-working days).
- IR35 EXTENDED TO PRIVATE SECTOR
Delayed from 6th April 2020, the public sector off-payroll working rules (IR35) will be extended to the private sector. From this date, large and medium-sized private companies will be required to follow the IR35 rules.
- 4. DEADLINE FOR SETTLED AND PRE-SETTLED STATUS
EU nationals who started living in the UK by 31st December 2020 can apply for settled or pre-settled status under the EU Settlement Scheme by 30th June 2021. Settled status, which allows the worker to stay in the UK indefinitely, will usually be granted if the worker can demonstrate that they have lived in the UK continuously for five years. If the worker has lived in the UK for less than five years, they can apply for pre-settled status, which can become settled status at the five-year point.
- EMPLOYMENT TRIBUNAL COMPENSATION AWARDS AND RATES
Employment tribunal compensation rates will increase from £538 to £544 from 6th April 2021.