April 2021 Employment Law Updates
This timetable outlines the major changes to UK employment legislation along with statutory rates.
National Living Wage and National Minimum Wage
1st April 2021
Significant increases will be made to the levels of the National Living Wage and National Minimum Wage from 1 April 2021. In addition, the age at which workers will qualify for the higher National Living Wage rate will decrease from 25 to 23.
From 1 April 2021, the new hourly rates will increase as follows:
The real Living Wage is the UK wage rate that is voluntarily paid by around 7,000 UK businesses. The NMW and NLW are statutory.
The rates for 2020/21 were announced on 9th November 2020 and are applicable to anyone aged 18 years and over. Employers signed up to this rate should implement the rise as soon as possible and within 6 months.
All employees should receive the new rate by 9th May 2021.
Just to highlight that in April 2020 the government resumed the public naming and shaming of businesses that don’t comply with the National Minimum Wage regulations, while raising the threshold at which this occurs from £100 to £500 in payment arrears.
Family friendly payments
Statutory maternity pay (SMP):
First six weeks – 90 per cent of employee’s average weekly earnings. Remaining weeks at the following rates or 90% per cent of earnings if lower.
First six weeks – 90 per cent of employee’s average weekly earnings. Remaining weeks at the following rates or 90% per cent of earnings if lower.
Paid for two weeks.
This timetable outlines the major changes to UK employment legislation along with statutory rates.
National Living Wage and National Minimum Wage
1st April 2021
Significant increases will be made to the levels of the National Living Wage and National Minimum Wage from 1 April 2021. In addition, the age at which workers will qualify for the higher National Living Wage rate will decrease from 25 to 23.
From 1 April 2021, the new hourly rates will increase as follows:
- National Living Wage (23 years and over) £8.91
- National Minimum Wage (21-22 years) £8.36
- Development rate (18-20 years) £6.56
- Young workers’ rate (16-17 years) £4.62
- Apprentice rate £4.30
The real Living Wage is the UK wage rate that is voluntarily paid by around 7,000 UK businesses. The NMW and NLW are statutory.
The rates for 2020/21 were announced on 9th November 2020 and are applicable to anyone aged 18 years and over. Employers signed up to this rate should implement the rise as soon as possible and within 6 months.
All employees should receive the new rate by 9th May 2021.
Just to highlight that in April 2020 the government resumed the public naming and shaming of businesses that don’t comply with the National Minimum Wage regulations, while raising the threshold at which this occurs from £100 to £500 in payment arrears.
Family friendly payments
Statutory maternity pay (SMP):
First six weeks – 90 per cent of employee’s average weekly earnings. Remaining weeks at the following rates or 90% per cent of earnings if lower.
- From 5 April 2020: £151.20
- From 4 April 2021: £151.97
First six weeks – 90 per cent of employee’s average weekly earnings. Remaining weeks at the following rates or 90% per cent of earnings if lower.
- From 5 April 2020: £151.20
- From 4 April 2021: £151.97
Paid for two weeks.
- From 5 April 2020: £151.20 or 90 per cent of employee’s weekly earnings if this is lower.
- From 4 April 2021: £151.97
- From 5 April 2020: £151.20 or 90 per cent of employee’s weekly earnings if this is lower.
- From 4 April 2021: £151.97
- From 6 April 2020: £95.85
- From 6 April 2021: £96.35
The contents of this page are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.
