Important changes ahead that affect Employers

The Employment Rights Act 2025 brings in some important changes that affect employers, and it is vital to be prepared for these changes.  

 

There are a number of changes being brought in but two of the biggest changes that affect employers are changes to Statutory Sick Pay (SSP) and changes to the National Minimum Wage. 

 

 

Previously SSP was only paid after a 4 day waiting period; however, this will now be considered a day one right. This means that SSP will be payable from day one of sickness.  

 

In addition, the lower earnings limit has been removed so low paid employees will qualify for SSP for the first time.  

 

The rate of SSP will now be 80% of the employee's average weekly pay or the flat rate, whichever is lower. The weekly rate of SSP for 2026 - 2027 is £123.25.  

 

It is vital to take HR advice if you employ people, as absence management will be very important. If you do not have a HR advisor at present let us know and we can introduce you to an appropriate firm.  

 

If we prepare your payroll for you please let us know of each and every absence so we can record the SSP properly on your employees payslip.  

 

 

Further changes to the NMW will take effect from 1st April 2026. The new rates will be: 

 

-anyone above the age of 21 is entitled to £12.71 per hour 

-aged between 18-20 they are entitled to £10.85 per hour 

-aged under 18 and apprentices are entitled to £8 per hour 

 

It is imperative that you meet both the new SSP rules and NMW guidelines, and HMRC routinely conducts checks to ensure employees are being paid properly.  

 

If you have any questions about paying your employees or want to check you are meeting the NMW requirements get in touch.