Employment Law Changes Employees NEED to Know AboutApril 21, 2021
As of the 1st April 2021, certain law changes came into play in regards to pay and what you are entitled to. To make sure you are being paid compliantly and in line with the law, it’s important to familiarise yourself with what’s changed – so that you can question your employer if you are in doubt over anything.
Here are some of the key changes you need to be aware of:
Changes to national minimum & living wages
By law, your employer MUST pay you a minimum amount on average for the hours you work.
This is called the:
- National Living Wage (NLW) if you’re aged 23 or over
- National Minimum Wage (NMW) if you’re aged under 23 or an apprentice
From the 1st April 2021, the National Living Wage changed from previously being for those aged 25 and above to also including those aged 23 and 24.
The National Living Wage increased by 19p an hour, or 2.2% to £8.91, which is the equivalent of more than £345 a year if you work full time – now inclusive of 23 and 24-year-olds.
You can see a full list of rate changes to familiarise yourself with here.
National Minimum Wage rates are usually updated every year in April by the government, so be mindful to look out for this to make sure you are being paid what you are entitled to.
Changes to redundancy pay calculations
From the 6th of April 2021, changes to statutory redundancy pay calculations were updated. An employer that has dismissed an employee for redundancy must by law pay those with two years’ service an amount based on the employee’s weekly pay, length of service, and age. However, the weekly pay is subject to the maximum amount, which changed to £544.
If you were dismissed on or after the 6th April 2021, make sure to check that you are receiving what you are entitled to, in line with the maximum amount for redundancy dismissals.
You can calculate your statutory redundancy pay entitlement here
Increases to statutory family-related pay and statutory sick pay
From the 6th April 2021, the weekly rate of statutory sick pay increased to £96.35.
If you are on maternity leave, paternity leave, adoption leave, shared parental leave, parental bereavement leave or sick leave – make sure you are being paid these statutory minimum rates.
It’s also important that you make sure your employer updates any work documents, policies, and procedures with this new minimum rate.
You can find out more about statutory sick pay and your entitlement here
Minimum holiday pay allowance
You may not realise that there is a minimum pay you are entitled to for holiday leave. Even though this amount remains unchanged, it’s important to know that you are entitled to a minimum holiday allowance representing 12.07% of your base pay.
This should allow you to check that you are receiving at least the minimum allowance and helps you to question it with your employer if you are not.
You can find out more about holiday and holiday pay entitlement here