Cherington HR is now part of HR Solutions ...but it's business as usual! Visit www.hrsolutions-uk.com to find out more.

April Rate Rises - get the dates right

It is that time of year again when the rates for various statutory pay elements increase, so don't forget to adjust the rates in your payroll - particularly given the change to the age bands for the National Minimum Wage. Other rates increase too - those for statutory maternity, paternity pay etc. as well as statutory sick pay and the cap on redundancy payment also go up. However, these all happen on different dates.

You will find the NMW rates here: https://cheringtonhr.com/news/636 and the Statutory Family Leave (maternity/ paternity etc.) and Sick pay rates here: https://cheringtonhr.com/news/638

The Wage rate changes are effective from 1st April; SSP from 6th April and the family leave rates from 4th April.

The other increase of note is the cap on a week's pay for statutory redundancy purposes (and calculations of basic awards in Employment Tribunals). This will increase from £538 to £544 per week for any redundancies taking effect from 6th April 2021. As a result, statutory redundancy pay will increase, with the maximum payment increasing to £16,320. This is in relation to the date that the employment is terminated - not the date that notice was originally given, so make sure that you make that adjustment if someone is leaving your business after Easter.

Compensation for unfair dismissal

Compensation for unfair dismissal claims is split into a “basic” award and a “compensatory” award. The basic award is calculated in the same way as statutory redundancy pay and will, therefore, increase as described above.

However, the compensatory award is calculated by reference to the claimant’s loss of earnings, subject to a statutory cap. The cap on the compensatory award for ordinary unfair dismissal claims will also increase as of 6th April 2021 to £89,493 (or 52 weeks’ gross actual pay, if lower). These new figures will apply where the effective date of termination falls on or after 6 April 2021.
Posted on 01 Apr 2021
< back
Cherington HR is now part of HR Solutions, giving you access to more benefits and tools to support your workforce.
Cherington HR Limited is registered in England and Wales Company No. 5780092. VAT No. 879 0946 64. Registered Office: Cherington House, Mulberry Drive, Upton upon Severn, Worcester, WR8 0ET, England.

The cheringtonhr® name and logo are UK registered trade marks owned by Cherington HR Limited.