HR News

National Living Wage

The National Minimum Wage is the minimum pay per hour most workers under the age of 25 are entitled to by law. This varies depending on age bracket and whether there is an apprenticeship involved, It ranges from £3.90 to £7.70.

The government’s National Living Wage is the minimum pay per hour most workers aged 25 and over are entitled to by law. This will stand at £8.21 an hour as at April 2019.

Statutory Payments

The statutory maternity, paternity, shared parental and adoption pay rates currently stand at 90% of your average weekly earnings (befoe tax) for the first 6 weeks and £145.18 a week or 90% of your average weekly earnings (whichever is lower) for the following 33 weeks. In addition, the weekly rate of statutory sick pay is currently £92.05 per week.

Holiday Pay

The Employment Appeal Tribunal (EAT) has held that regular non-guaranteed overtime should be included in holiday pay calculations, but the EAT has limited the potential for workers to succeed with claims for historical non-payment of holiday pay.

Implications For Employers

Workers’ holiday pay for the four weeks’ annual leave to which they are entitled under EU law should reflect payments that they receive for overtime.

The possibility of workers claiming for holiday pay underpayments dating back for years as a series of unlawful deductions is limited.

Travelling-time payments fall within the definition of “normal remuneration” and should be included in holiday pay calculations.

Employment Tribunal Limits

The Employment Rights (Increase of Limits) Order 2018 increases the limits applying to various tribunal awards and other amounts payable under employment legislation, including the maximum amount of a week’s pay for the purpose of calculating the basic award for unfair dismissal and a redundancy payment, which increases to £508, and the maximum amount of the compensatory award for unfair dismissal, which increases to £83,682.
The order applies where the event that gives rise to the entitlement to the payment occurs on or after 6 April 2018.

Pension Auto Enrolment

The Employers’ Duties (Implementation) Regulations 2010 , as amended by the Employers’ Duties (Implementation) (Amendment) Regulations 2016 , implement a planned increase in the minimum level of employer contribution into a pensions auto-enrolment scheme from 1% to 2%. A further planned increase to 3% will take effect in April 2019.

Requirements to Report Gender and CEO Pay Gaps

From the 4th April onwards, private companies who employ more than 250 members of staff will be required to disclose their gender pay gap figures. The change to employment law comes into force following an initial report published by companies that met the criteria earlier this year. Private organisations will face scrutiny if efforts have not been made to close the gender pay gap since the first report.

It isn’t just the gender pay gap at the top of the agenda in 2019, but CEO pay gaps also. In the following year, companies with more than 250 employees will have to start calculating the appropriate figures so that come 2020, businesses can disclose their executive pay gaps. The report will focus on the pay gap between the average salary of a company CEO compared to that of an employee.
It is simply a waiting game until 2019 to see what other employment laws will take effect. However with these 8 changes in mind, it is important that your company does the upmost to ensure all new reforms and laws are complied with.

Technical Amendments to Employment Law to Ensure a Smooth Brexit Takes Effect

From 29th March 2019 the Government introduces legislation to ensure that employment laws continue to operate effectively on the day the UK leaves the EU. The legislation makes minor technical changes, including amending and removing inappropriate language and references. One of the main concerns surrounding Brexit has been the change in status of EU nationals once the UK leaves the European Union. There are two different statuses individuals can apply for – settled or temporary.
EU workers can apply for a settled status – which will indefinitely allow them to live in the UK – if they have already lived in the UK for a minimum of 5 years. If however this is not the case, EU workers can apply for a temporary status which will allow them to live and work in the UK until they are eligible for settled status.

Requirements for Payslips to State Hours Worked Where Pay Varies

From 6th April 2019 The Employment Rights Act 1996 provides that, where an employee’s pay varies by reference to time worked, employers must include the number of hours for which the employee is being paid on his or her itemised pay statement. The change is designed to make it easier for hourly paid staff to ensure that they are paid correctly and to address underpayments.

If you have any questions or concerns about these changes please contact us.