Timeline for employment updates

Below we set out some significant dates and changes to employment law this year. Please do not hesitate to get in contact if you would like to discuss any of these.

1st April 2021

National minimum wage

National Living Wage is extended to workers aged 23 and over and increases to £8.91 per hour. The national minimum wage increases:

  • from £8.20 to £8.36 for 21 to 22 year olds
  • from £6.45 to £6.56 for 18 to 20 year olds
  • from £4.55 to £4.62 for 16 and 17 year olds
  • from £4.15 to £4.30 for apprentices.

4th April 2021

New statutory rates

Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Shared Parental Pay (ShPP), Statutory Adoption Pay (SAP) and Statutory Parental Bereavement Pay (SPBP) increase to £151.97.

Statutory sick pay (SSP)

SSP increases to £96.35.

6th April 2021

Maximum compensatory award

The maximum compensatory award for unfair dismissal increases to £89,493 (from £88,519) where the effective date of termination is on or after 6 April 2021.

A week’s pay

The maximum amount of a week’s pay (used to calculate statutory redundancy payments) increases to £544 (from £538) where the effective date of termination is on or after 6 April 2021.

IR35

Off payroll working to be extended to large and medium sized private sector employers.

30th June 2021

EU Settlement Scheme

Deadline for EU citizens and their families who arrived in the UK before 11pm on 31 December 2020 to make an application under the EU Settlement Scheme in order to retain the right live and work in the UK.

1st July 2021

The Coronavirus Job Retention (Furlough) Scheme

Government grant for Furlough scheme reduces and employers must begin to contribute 10% of furlough pay for unworked hours.

1st August 2021

The Coronavirus Job Retention (Furlough) Scheme

Government grant for Furlough scheme reduces and employers must contribute 20% of furlough pay for unworked hours.

30th September 2021

The Coronavirus Job Retention (Furlough) Scheme

Furlough Scheme ends.

5th October 2021

Gender pay gap reporting

Enforcement action against employers (public, private and voluntary) who fail to report their gender pay gap information for the 2020/21 year starts.

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