5th & 6th April 2015 -Changes to statutory payments and compensation limits

Employers need to be ready for a number of changes on 5th and 6th April 2015 including increases to statutory payments and compensation limits.

1. Shared Parental Leave and Pay – 5th April 2015

•  Described as one of the “yuckiest, most horrible laws ever” and “the most complex sets of regulations” the right to shared parental leave and pay will be available to couples with a baby born or those adopting on or after 5th April 2015. Parents will be able to share a mother’s maternity leave and if applicable maternity pay.

2. Child’s age limit for Parental Leave raises to 18 on 5th April 2015

• The current law for the statutory right to a period of unpaid leave is that this may be taken by a parent during the first 5 years of a child’s life.
• From 5th April 2015, the age limit for the child will increase from 5 to 18 years. Parents with sufficient qualifying service will have the right to up to 18 weeks unpaid parental leave up to the child’s 18th birthday.

3. Increases to Statutory Maternity Pay, Ordinary Paternity Pay and Adoption Pay on 5th April 2015

• Statutory Maternity Pay, Ordinary Paternity Pay, Adoption Pay will be increased from £138.18 per week to £139.58 per week.
• The above rate of £139.58 per week will also apply to the new Shared Parental Pay (SPP).

4. New Compensation limits & Increase to Statutory Redundancy Pay on 6th April 2015

The Employment Rights (Increase of Limits) Order 2015 increases compensation limits and awards that apply to a range of employment claims from 6th April 2015 including:

• The limit on gross weekly pay for Statutory Redundancy Pay or the Basic Award for unfair dismissal will increase from £464 to £475; and
• The maximum Compensatory Award for unfair dismissal will increase from £76,574 to £78,335.

5. Statutory Sick Pay (SSP) Increase on 6th April 2015

• SSP increases on 6th April 2015 from £87.55 per week to £88.45 per week

It is important that businesses are aware of the above so they do not breach employment legislation and place themselves at risk of employee grievances and/or employment claims.

Should your business need further information or assistance with the above or a review of its employment contracts, policies and procedures, contact Farleys Solicitors LLP’s Commercial HR & Employment Law team on 0845 050 1958, alternatively please complete an online enquiry form.