2024 Statutory Changes : Everything Employers Need to Know

It’s that time again, on April 1st the Government will introduce changes to statutory payment rates.

It happens every year, and 2024 is no exception.

Across our 40 years in HR, we’ve seen many changes to employment law. So, make yourself a cup of tea, put your feet up, and we’ll walk you through all you need to know.

Changes Coming in April

Statutory Maternity Pay

One of the most significant changes coming in April is statutory maternity pay. Although it sounds technical, it’s pretty simple.

It’s all about an increase in pay rate.

Previously, after the first six weeks of maternity leave, employers had to pay their employees a rate of £172.48 or 90% of their average weekly earnings if it was below £172.48.

Now, after the first six weeks, the remaining 33 weeks of maternity pay must be paid at a rate of £184.03 weekly or 90% of the employee’s pay if it’s below £184.03.

Statutory Adoption Pay

For many couples, adoption is the only choice. For others, it’s preferred. In either case, the government is also making some big changes here.

From April, you must pay 90% of an employee’s salary for the first six weeks of their leave and a rate of £184.03 after.

Ordinary Statutory Paternity Pay /Leave

Like maternity pay, paternity pay regulations will also change with an increase in pay rates to £184.03. This is 90% of average weekly earnings, to match the new maternity rate, up from £172.48.

Another change being introduced is to how paternity leave can be taken. Previously, paternity leave had to be taken in a one or two-week block. However, from April onwards, it can be taken in two individual one-week blocks within the first year of birth or adoption.

Statutory Parental Bereavement Pay

Losing a child can be incredibly difficult for an employee. Handling the employees’ leave in these instances is challenging, as it involves balancing private tragedy with company needs.

As part of the changes in April, the government is refreshing its rules on dealing with bereavement situations. The rate bereaved parents are entitled to has increased from £172.48 to £184.03, or 90% of the average salary if lower.

Shared Parental Pay

Shared Parental Pay gives new parents more flexibility by allowing a mother or primary adopter to end their maternity/adoption pay early. This gives new parents more say in how their child is cared for.

For health and safety reasons, the first two weeks of maternity or adoption are mandatory. However, following this period, the mother can end their maternity pay when and if they want to.

This gives parents 37 weeks of shared pay to be split up as they see fit. For example, the mother or primary adopter may wish to return to work for a few weeks so the non-birth partner can stay home and receive payment through Shared Parental Pay even after using their paternity pay entitlement.

In line with many other changes being introduced by the government for 2024, the pay rate for Shared Pay will be increased to £184.03, or 90% of average weekly earnings, a jump from the previous rate of £172.48.

Changes to Unfair Dismissal Pay

New laws are also coming regarding compensation pay limits.

• The first significant change is an increase in the maximum award for an unfair dismissal decision, which has jumped from £105,707 to £115,115.

Redundancy Cap

The minimum award that can be given for redundancy has also increased from £7,836 to £8,533.

• The cap on how much weekly pay can be used in redundancy and unfair dismissal calculations has also jumped from £643 to £700.

Statutory Guaranteed Lay off

• Finally, the maximum cap for statutory guaranteed pay for lay off is set to increase from £35 to £38 per day.

Dealing with Changes

Every April, the government changes the statutory payment amounts. However, as a business owner, it’s hard to keep up with the changes while keeping your business running.

If you’re pressed for time, seeking help with your payroll and compliance management will give you peace of mind and give you back that time to focus on your business.

At HR:4UK, we have a dedicated team to help you adapt to any change the government introduces. Our 40 years of experience means we’ve seen a lot and have the diligence and ability to help your company maintain its compliance while being fair to your employees.

We can help you through any process so you can focus on managing your business core activities.

If you need help managing your Payroll or HR Consultancy to make the best plan moving forward, we’re here to help.

Contact us on 01455 444222 or email at [email protected]