Thank you for joining me for our end of month Newsletter. My name is Kyle and I am one of the solicitors here at PJH Law. With us firmly into the new year, we take a look at some of the most relevant topics that are likely to be a continuing theme throughout the rest of this year. For those of you who missed our previous case of the week, you can find that here. This month, we look at the announced and planned employment changes and what they mean for business.
Employer National Insurance Contributions (NICs) Set to Rise
Big one out of the way first – National Insurance contributions have been set to rise. From April 2025, employer NICs will rise from 13.8% to 15%, while the earnings threshold at which employers start paying NICs will drop from £9,100 to £5,000. These changes will significantly increase employment costs for businesses. However, small businesses benefiting from the Employment Allowance will see some relief, as the allowance will increase from £5,000 to £10,500.
While the changes are yet to take effect, the market has reacted with some 40,000 job listings disappearing compared with previous months. This is coupled with some large supermarkets removing several thousand jobs. With the Government giving itself little room to manoeuvre, as it had promised increases to income or corporation tax, these are factors which business are already having to factor into their bottom line in the new year. Having said that, however, this month saw the first economic growth (anyone else getting bored with hearing the word growth already?) for the previous 3, so perhaps not all doom and gloom.
Ensuring that these changes have been factored into budgets after the change will be vital, along with decisions around hiring practices. For smaller businesses, ensuring that relief is applied for can also be a huge help.
Government Warning to Gig Economy Firms
The UK government has warned gig economy platforms, including YoungOnes and Temper, that they may be unlawfully misclassifying workers as self-employed. This could mean thousands of workers are being denied basic employment rights such as paid holiday, sick leave, and pension contributions.
Employment Rights Minister Justin Madders emphasized that “bogus self-employment” is unacceptable, and firms operating in the UK must comply with employment laws. The government is closely monitoring gig platforms and may take enforcement action if necessary.
While reforms are planned in relation to the removal of ‘worker’ status, for the time being the three classifications remain in place. Ensuring that the contract and circumstances accurately reflect the intention of both parties is always important, but may become more so moving forward.
Minimum Wage Increases Coming in April
Some boring numbers for you all – the government has confirmed increases to the National Minimum Wage and National Living Wage, effective 6 April 2025:
National Living Wage (21+): £12.21 per hour (up from £11.44)
Ages 18–20: £10.00 per hour (up from £8.60)
Ages 16–17 & apprentices: £7.55 per hour (up from £6.40)
This wage increase is expected to benefit millions of workers but will also increase payroll costs for employers, particularly in sectors such as retail, hospitality, and social care. You know, the sectors renowned for doing fantastically well at the moment…
First Cabinet Minister to Take Full Paternity Leave
Scottish Secretary Ian Murray has become the first UK cabinet minister to take full paternity leave, highlighting the growing importance of parental rights in the workplace. His decision reflects broader cultural and political shifts towards normalizing shared parental leave and encouraging more fathers to take time off. Given that the time off for fathers remains at 2 weeks, however, this is unlikely to represent significant changes to behaviour or social expectations of where the burden of childrearing lies.
Labour has pledged to enhance workplace parental rights, and this move could pave the way for policy reforms, including increased paternity leave allowances and greater employer obligations to support working parents. We will have to wait and see what the changes are as they are announced. Ensuring that parental and fmaily leave policies are up to date can never be a bad thing, however.
Lighter Side of the News
This month saw a claim of sexual harassment against a whiskey bar manager after one of their managers ‘air kissed’ them as a greeting. The claim was dismissed after an Employment Judge found that while the manager may have been guilty of overzealous facial choreography, their lips never actually made contact and it was not of a sexual nature. That’s right – air kissing, the time-honoured greeting of flamboyant aunts and eccentric theatre directors, has been officially cleared of wrongdoing.
Experts say this ruling could have far-reaching consequences for the future of workplace etiquette. Can finger guns be classed as assault? Could a jazz hands farewell be considered harassment? And what of the dreaded double air kiss – the ultimate power move of posh luncheons? Stay with us for further developments in this legal frontier.
In the meantime, HR departments across the nation are updating their policies: “No unsolicited physical contact, inappropriate comments, or aggressively mimed gestures of affection.” As for the manager, he has reportedly sworn off air kisses altogether and now communicates exclusively through a series of respectful nods.
PJH Law News – Mindful Moments at Work
Namaste 🙏
Over the last two weeks, the PJH Law team have participated in a relaxing yoga and meditation session, it was just what we all needed. Taking a step away from our busy schedules to focus on mindfulness, breathing, and a bit of stretching was a great reminder of how important it is to look after our mental and physical well-being, especially in a fast-paced work environment.
It was fantastic to share this experience as a team. Not only did we get to unwind together, but we also strengthened our connection and created space for open minds and positive energy.
A big thank you to @emilyrowell and @aligninnerhealing for guiding us through such a calming and restorative session.
If you haven’t tried bringing wellness into your workplace, I highly recommend it—it’s a great way to recharge and reconnect.
Feedback of the Week
Great feedback for Joe this week!
S.C. shared her experience:
“A huge thank you for helping me! PJH Law is incredibly friendly and welcoming. The service I received was excellent—one of the best solicitors I’ve ever used. The pricing is very reasonable, and I wouldn’t hesitate to recommend PJH Law to my friends and family.”
Looking for expert employment legal support with a personal touch? Get in touch with us today!
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