Peter Etherington
Telephone number
Email

Employment Update for Small Businesses
February 2025

Dear Subscriber

The Employment Rights Bill is slowly making its way through the various parliamentary stages but implementation is still some way off. In the meantime a new right to Neonatal Leave and Pay is to be introduced from 6th April 2025 – read on to find out more. Also, we report on the new statutory rates that will apply from April.
Please contact me if you would like to find out a bit more about any of the subjects raised in this update or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.

Regards
Peter Etherington
Tel: 01664 668164

www.etherington.co.uk

Twitter Facebook LinkedIn
Peter Etherington
Neonatal Leave and Pay
A new statutory right to time off
This new entitlement applies with respect to babies born (or placed for adoption) on or after 6th April 2025, and where they are placed into neonatal care within 28 days of birth or adoption. It applies to parents (and partners of birth mothers/adopters).

The entitlement is for up to 12 weeks’ Neonatal Care Leave (NCL) and it must be taken within 68 weeks of the baby’s birth (or placement for adoption). This applies in addition to any other type of statutory leave that the employee may be entitled to (e.g. maternity or paternity leave). It is anticipated that employees will normally want to add it on to the end of any other statutory leave, so that they benefit from a longer period of paid leave.

If NCL is taken whilst the baby is receiving care, it can be taken in non-continuous blocks of a minimum of one week at a time – this will be knows as Tier 1 Leave. If taken after care has ended, that is Tier 2 Leave and it must be taken in one continuous block.

Statutory Neonatal Care Pay (SNCP) applies where the employee has 26 weeks’ continuous service and earns on average the Lower Earnings Level (currently £123 per week). That is the same as for the entitlement to Statutory Maternity Pay, Statutory Adoption Pay, etc.

Similar to other types of family leave, the employee retains their terms and conditions of employment (other than pay) whilst on leave and the right to return to the same job.

We will be writing appropriate policies and rolling them out to all our customers in time for this change. If you would like to find out how we could support you, please get in touch.

New Statutory Rates
From 6th April 2025
  • Statutory Sick Pay is increasing from £116.75 to £118.75 per week.
  • Statutory Maternity, Adoption, Shared Parental and Parental Bereavement Pay increases from £184.03 to £187.18 per week. That will also apply to Statutory Neonatal Care Pay, as set out above.
  • The Lower Earnings Level increases from £123.00 to £125.00 per week.

Don’t forget also that the changes to thresholds and increase in rates for employer’s National Insurance, and the increase in the minimum wage (see below) apply from 1st April 2025, so there are quite a few cost implications for employers to absorb.

National Minimum and Living Wage
From 1st April 2025, the minimum wage bands are increasing as follows:

  • to £12.21 per hour (from £11.44) for workers aged 21 and over
  • to £10.00 per hour (from £8.60) for workers aged 18 to 20
  • to £7.55 per hour (from £6.40) for workers aged 16 and 17; and for apprentices under 19 and those over 19 in their first year*

*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age.

www.etherington.co.uk