“2025 will be a year of two halves for employers,” a leading employment lawyer has claimed.
Joanne Stronach, Head of Employment Law and HR at Cartmell Shepherd Solicitors, believes that it is crucial for businesses to focus on the immediate financial impacts on their payroll in the first half of 2025.
Changes include the annual uplift to statutory sick pay, increases to the National Minimum Wage rates and the increase of employers’ National Insurance contributions from 13.8% to 15% on April 6, 2025.
The second half of this year will be an important time for businesses to start reviewing employment policies and contracts, and getting ready for the changes planned for 2026, according to Joanne.
From April 1, 2025, the National Minimum Wage rates will increase as follows:
- Those aged 21 and over = from £11.44ph to £12.21ph – an increase of 6.7%;
- Those aged between 18 and 20 = from £8.60ph to £10ph – an increase of 16.3%;
- Those aged between 16 and 17 = from £6.40ph to £7.55ph – an increase of 18%.
On April 6, 2025, statutory sick pay will increase to £118.75 per week (up from £116.75), and statutory maternity, paternity, adoption and shared parental pay will increase to £187.16 per week (up from £184.03). Employers need to be prepared for the impact of these changes on their businesses, Joanne insisted.
She is also concerned that these additional expenses will affect businesses’ plans for growth and could lead to recruitment freezes or even restructuring and redundancies for some companies.
Joanne said: “It is also important for businesses not to forget the new right for employees to neo natal leave due to come into law in April 2025. This type of leave would need to be added into all new contracts of employment after April 2025 where the types of leave available to the employee are set out.
Speak to me and my team or your employment lawyer if you are challenged on any new rates of pay, receive any queries relating to types of leave or need to plan for restructuring or redundancies.”
Preparation in the second half of the year will be crucial too ahead of the planned implementation of the Employment Rights Bill, Joanne explained.
“Businesses can’t afford to lose sight of the raft of changes coming in next year as well. More information on the implementation of the new laws should be available in the second half of the year with hopefully some commencement dates for these changes too.
It is important that businesses do not sit complacently thinking that they can wait until 2026 before doing anything.
Employers do not want to be caught out. They need to be aware as soon as possible of how the new laws will impact on their business operations, such as how to manage probationary periods. 2026 will be here before we know it.”
The Employment Rights Bill aims to ban ‘exploitative’ zero hours contracts, and ‘unscrupulous fire and rehire’ practices, provide a day one right to claim against unfair dismissal and remove the three day waiting period for payment of statutory sick pay.
Cartmell Shepherd Solicitors covers all aspects of Business Law including Employment Law for employers. The law firm has seven offices across Cumbria and Northumberland in Carlisle (two locations), Cockermouth, Penrith, Brampton, Hexham and Haltwhistle.
Joanne Stronach can be contacted at joanne.stronach@cartmells.co.uk or 01228 516666.
