Employment law timeline 2021

This timeline sets out the key employment law changes expected to take place in 2021 but is subject to change given the current political climate

18 March 2021

Employment timeline 2021

  • 1 January 2021

    New immigration requirements 

    End of free movement of workers following Brexit. From 1 January 2021 anyone from outside the UK and Ireland (including all EU nationals) will require a visa if they want to work in the UK. Employers will need to hold a sponsor licence in order to sponsor employees for these purposes. 

    Link to briefing

  • 30 March 2021

    Gender pay gap reporting for public sector employers

    Public sector employers to report before this date (with a snapshot date of 31 March 2020).

  • 31 March 2021

    FCA Conduct Rules

    The FCA Conduct Rules come into force for all staff at solo-regulated FCA firms.

    Link to video

  • 1 April 2021

    National minimum wage

    National Living Wage is extended to workers aged 23 and over and increases to £8.91 per hour. The national minimum wage increases:

    • from £8.20 to £8.36 for 21 to 22 year olds
    • from £6.45 to £6.56 for 18 to 20 year olds
    • from £4.55 to £4.62 for 16 and 17 year olds
    • from £4.15 to £4.30 for apprentices.
  • 4 April 2021

    Gender pay gap reporting for private sector employers

    Private sector employers to report before this date (with a snapshot date of 5 April 2020).

  • 4 April 2021

    New statutory rates

    Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Shared Parental Pay (ShPP), Statutory Adoption Pay (SAP) and Statutory Parental Bereavement Pay (SPBP) increase to £151.97.

  • 4 April 2021

    Statutory sick pay (SSP)

    SSP increases to £96.35.

  • 6 April 2021

    Maximum compensatory award

    The maximum compensatory award for unfair dismissal increases to £89,493 (from £88,519) where the effective date of termination is on or after 6 April 2021.

  • 6 April 2021

    A week’s pay

    The maximum amount of a week’s pay (used to calculate statutory redundancy payments) increases to £544 (from £538) where the effective date of termination is on or after 6 April 2021.

  • 6 April 2021

    IR35

    Off payroll working to be extended to large and medium sized private sector employers.

    Link to briefing

  • 6 April 2021

    PENP

    Changes to the formula for Post-Employment Notice Pay (PENP) come into force for calculations where an employee’s pay period is defined in months, but their contractual notice period or post-employment notice period is not a whole number of months.

    Link to policy paper

  • 30 June 2021

    EU Settlement Scheme

    Deadline for EU citizens and their families who arrived in the UK before 11pm on 31 December 2020 to make an application under the EU Settlement Scheme in order to retain the right live and work in the UK.

    Link to briefing

  • 1 July 2021

    The Coronavirus Job Retention (Furlough) Scheme

    Government grant for Furlough scheme reduces and employers must begin to contribute 10% of furlough pay for unworked hours.

    Link to briefing

  • 1 August 2021

    The Coronavirus Job Retention (Furlough) Scheme

    Government grant for Furlough scheme reduces and employers must contribute 20% of furlough pay for unworked hours.

  • 30 September 2021

    The Coronavirus Job Retention (Furlough) Scheme

    Furlough Scheme ends.

    Link to briefing

  • 5 October 2021

    Gender pay gap reporting

    Enforcement action against employers (public, private and voluntary) who fail to report their gender pay gap information for the 2020/21 year starts.

Key contact

Headshot of Adrian Martin

Adrian Martin Partner

  • Head of Employment
  • TUPE: Business Transfers and Outsourcing
  • Restructuring and Redundancy

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