Employment Alert- April 2021 changes

01 Apr 2021

April 2021 changes

What’s happening?

Every year in April, new and updated employment law provisions come into force, and 2021 is no exception.

In April 2021, we will see the introduction of IR35 Regulations, changes to the minimum wage, new statutory pay rates and increases to the Vento bands which are used to calculate “injury to feelings” awards in discrimination claims.

Why is this important?

Employers will be expected to comply with these new statutory obligations and payment increases. Your current contracts and policies may need to be updated if they don’t comply.

The changes are as follows:

  • National minimum wage increases from 1 April 2021. All rates are increasing, and the national living wage will now apply to those aged 23 and over – see our previous Alert for full details here.
  • Increases to statutory pay rates from 4 April 2021. The statutory rates for Maternity Pay, Paternity Pay, Adoption Pay, Shared Parental Pay and Parental Bereavement Pay will increase from £151.20 to £151.97 (or 90% of the employee’s average weekly earnings, whichever is lower).
  • The statutory sick pay rate will increase from £95.85 to £96.35 per week from 6 April 2021.
  • IR35 Regulations will be introduced (following a year’s delay) on 6 April 2021 – further details of this can be found here.
  • New Vento bands will apply for discrimination claims issued on or after 6 April 2021:
  1. The lower band (for less serious cases) will be £900 to £9,100
  2. The middle band (for more serious cases which do not merit an award in the upper band) will be £9,100 to £27,400
  3. The upper band (for the most serious cases of discrimination) will be £27,400 to £45,600. Although awards may exceed this in exceptional circumstances

What should you do?

  1. Read our previous updates on national minimum wage and the introduction of IR35 if this applies to your business
  2. Check to see if your contracts and policies comply and if not, update them
  3. Ensure you are familiar with your new obligations

If you need more information please contact us on 0800 2800 421 or email Employment.Alert@trethowans.com to find out how we can help.

Author

Andrew Crudge

Associate