Which Employment Law changes are on the horizon for April 2025?
April is around the corner, and if you’re running a membership organisation, now’s the time to get across a new wave of employment law changes. Some are subtle. Others could upend your payroll, staffing policies or even your hiring strategy.
And while it’s tempting to file this under “HR admin”, these changes could impact member experience, team wellbeing and your organisation’s financial headroom. So, let’s break them down in plain English, with specific focus on what matters for the membership sector:
1. Employer National Insurance contributions are increasing
From 6 April 2025, employer NICs will increase from 13.8% to 15%. At the same time, the threshold at which employers start paying NICs will drop from £9,100 to £5,000 per year.
For many membership organisations - especially those employing part-time or early-career staff - this could mean more employees triggering NICs than before. But remember, the Employment Allowance is also increasing significantly, from £5,000 to £10,500, and the £100,000 cap is also being scrapped. That’s good news for smaller organisations who qualify, as it may soften the impact.
2. Minimum and living wages are going up
From 1 April 2025, these are the new statutory hourly rates:
- £12.21 for workers aged 21 and over
- £10.00 for workers aged 18-20
- £7.55 for workers aged 16-17 and apprentices
If you rely on junior roles for administration, events or member services - as many organisations in the sector do - this will affect your payroll. These rises may feel significant, especially if you’re managing tight margins. But they reflect more than just policy shifts, they respond to the real pressure many workers are under right now.
The cost of essentials - rent, transport, even a basic lunch out - has continued to climb. For younger workers in particular, even modest rises in pay can be the difference between staying afloat and struggling. Plus, competitive pay is increasingly the baseline for attracting reliable, motivated staff who’ll stick around – so getting pay right is as much a retention strategy as a compliance one.
3. Statutory Sick Pay is increasing - and reforms may be on the horizon
Statutory Sick Pay (SSP) will increase to £118.75 per week from 6 April 2025. The earnings threshold for qualification is also going up slightly, from £123 to £125 per week.
At the same time, further reforms are still being considered. These include removing the current three-day waiting period and introducing a new model based on 80% of earnings for lower-paid workers, though nothing is confirmed just yet.
If you have casual, part-time or project-based staff, it’s a smart time to revisit your absence management approach. Make sure policies are clear and accessible, and that your team feel supported - not scrutinised - when they need time off. A proactive, compassionate stance on sickness can reduce stress, improve retention and help everyone work better in the long run.
4. Redundancy pay and tribunal awards are increasing
The statutory cap on a week’s pay, used to calculate redundancy pay and basic unfair dismissal awards, is increasing from £700 to £719.
This means the maximum statutory redundancy payment will be £21,570. Meanwhile, the maximum compensatory award for unfair dismissal is increasing from £115,115 to £118,223.
For most membership organisations, this won’t cause immediate change. But if you’re undergoing restructuring or considering redundancies, it’s important that your documents, calculations and communications reflect the updated limits.
5. Statutory family-related payments are going up
From 6 April 2025, the weekly maximum rate for statutory family leave payments is increasing from £184.03 to £187.18 (or 90% of average weekly earnings, if lower). This applies to:
- Statutory Maternity Pay (after the first 6 weeks)
- Statutory Paternity Pay
- Statutory Shared Parental Pay
- Statutory Adoption Pay (after the first 6 weeks)
- Statutory Parental Bereavement Pay
The earnings threshold to qualify for these payments is also rising slightly - from £123 to £125 - per week.
It’s a relatively modest increase, but still one to check off with payroll to ensure employees receive the correct entitlement.
That said, many membership organisations are already thinking beyond the statutory minimum, and for good reason. Better family leave and flexible return-to-work options are being increasingly seen as standard by candidates looking for employers who genuinely support work-life balance. Offering inclusive family policies is one of the simplest ways to set your organisation apart and hold on to talent during life’s big transitions.
6. Neonatal leave and pay is being introduced
From April 2025, a brand-new statutory entitlement will give parents of babies admitted to hospital neonatal care up to 12 weeks of additional paid leave. This is on top of their existing maternity, paternity or adoption leave.
Key points:
- It applies from day one of employment
- It covers babies born from 6 April 2025 onwards
- The child must be in neonatal care for at least 7 consecutive days
- Pay is set at the same rate as other family-related leave (£187.18/week)
It’s a thoughtful and overdue change, and one that recognises how tough the early days can be for families when things don’t go to plan. For parents navigating hospital stays, uncertainty and exhaustion, this additional time can offer breathing space at a moment when it’s most needed.
For membership organisations, this does mean you may have to plan for longer or more complex periods of parental leave. In a sector where teams are often lean and staff tend to wear multiple hats, it’s worth building neonatal leave into your contingency planning.
That could mean anything from reshuffling workloads to engaging interim support. It’s also worth thinking about how you track entitlements internally, since neonatal leave sits separately from existing parental leave, and eligibility may not be obvious at first glance.
In summary
For membership organisations, staying on top of these updates is as much about compliance as it is living your values. Whether it’s supporting parents through difficult starts, offering fair pay for early-career professionals, or helping someone take time to recover properly, the way you respond to these changes says a lot about your culture.
So now’s the time to review your policies, refresh your planning, and have a few honest conversations with your teams. Small adjustments now can make a big difference - not just to your operations, but to the people at the heart of them.