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
Employment timeline 2021
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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
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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).
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31 March 2021
FCA Conduct Rules
The FCA Conduct Rules come into force for all staff at solo-regulated FCA firms.
Link to video
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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.
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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).
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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.
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4 April 2021
Statutory sick pay (SSP)
SSP increases to £96.35.
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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.
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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.
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6 April 2021
IR35
Off payroll working to be extended to large and medium sized private sector employers.
Link to briefing
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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
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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
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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
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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.
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30 September 2021
The Coronavirus Job Retention (Furlough) Scheme
Furlough Scheme ends.
Link to briefing
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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.
Adrian Martin
Partner
- Head of Employment
- TUPE: Business Transfers and Outsourcing
- Restructuring and Redundancy
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