In brief

A number of employment law changes are coming into force on 6 April 2021 that UK employers should make note of. 

Key takeaways

National minimum wage – The annual increases in national minimum wage rates will apply, taking the minimum salary of those aged 23 or over to GBP 8.91 per hour. For further information, please see our update here. 

Increase of limits of tribunal awards – The following increases in tribunal awards will take place. In cases involving dismissal, the new rates will apply where the effective date of termination falls on or after 6 April 2021. 

  • The limit on a week's pay will increase to GBP 544 (from GBP 538)
  • The maximum compensatory award for unfair dismissal will increase to GBP 89,493 (from GBP 88,519)
  • The minimum basic award for certain unfair dismissals will increase to GBP 6,634 (from GBP 6,562)

New IR35 rules – The new IR35 rules in the private sector come into force. These rules impact how contractors who are engaged through personal service companies are taxed and impose a greater administrative burden on the companies that engage them. For further information, please see our update here.