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Less than half of businesses prepared for GDPR

According to new research carried out by the Department for Digital, Culture, Media & Sports, less than half of all UK businesses and charities are aware of the changes to UK data protection law under the EU's General Data Protection Regulation (GDPR) which will come into force on 25 May 2018.
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Less than half of businesses prepared for GDPR

Employment law dates for your diary!

As we switch on our screens and open up our new diaries for the New Year here are some important employment law related dates you should bear in mind:
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Employment law dates for your diary!

The Real Living Wage has increased, but is it actually benefitting employees?

Earlier this week it was announced that the Real Living Wage has been increased from £8.45 to £8.75 per hour across the UK and from £9.75 to £10.20 per hour in London. The changes have been driven largely by inflation, higher private rents and transport costs, and the new figures have been calculated to reflect the actual cost of living required in order to sustain a decent quality of life in the UK and London.

However, the Real Living Wage remains voluntary, unlike the mandatory National Living Wage put in place by the Government. Further, despite more than one thousand employers signing up to pay the Real Living Wage since Living Wage Week last year (including Google and Ikea), 5.5 million people across the UK (comprising 21% of the workforce) are still being paid less than the Real Living Wage. One of the criticisms of the Living Wage campaign was that it targeted sectors that do not tend to have significant numbers of low paid staff – as such, it may not, as yet, have had the desired impact for those who need it the most.

Further, there have been questions around how employers are offsetting the additional cost of meeting the Real Living Wage – some employers have cut overall pay packages to mitigate the costs of increased pay, for example stopping overtime rates and cutting back hours. As such, the overall benefit being passed to employees is, in some cases, questionable.

On a more positive note, the increase in the Real Living Wage will see more than 150,000 employees get a pay rise, as more than 3,600 employers have now signed up to pay the Real Living Wage since it was introduced. Among these is Heathrow, which is set to become the first Real Living Wage airport by the end of 2020.

The Real Living Wage has increased, but is it actually benefitting employees?

Parental bereavement leave bill published by the government

On 13 October 2017, the government published the Parental Bereavement (Pay and Leave) Bill. This will offer two weeks' paid leave to any employed parent who loses a child under the age of 18.
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Parental bereavement leave bill published by the government

The Repeal Bill – Workers’ Rights

On 7 September 2017 the government published a factsheet on the impact of the Repeal Bill, which was recently passed by a majority of MPs, and the future status of workers' rights following the UK's withdrawal from the EU.
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The Repeal Bill – Workers’ Rights

GDPR: time to start thinking about the new rules coming into force from 2018

The EU's General Data Protection Regulations (GDPR) will apply in the UK from 25 May next year. With increasingly tighter requirements around how employers must maintain and process personal data, and with the number of fines issued for breaches of UK data protection laws on the increase, many employers are already looking to employ permanent staff dedicated to ensure compliance with the new rules.
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GDPR: time to start thinking about the new rules coming into force from 2018

Its all change in employment law in April…

April is a key month for employment law changes and this April is no different. 6 April is “D-Day” for a number of significant changes. By way of reminder:

1 April

  • National minimum wage – the National Living Wage (for workers aged 25 and over) increased from £7.20 to £7.50 and there were also changes in the other bands.

Weeks commencing after 2 April

  • Cap on a week’s pay  – the cap on a week’s pay (which is used in statutory redundancy pay calculations for example) increased from £479 to £489.

5 April and onwards

  • Gender pay gap reporting – employers with 250 employees should have collated their relevant data on the first annual “snapshot date” yesterday. Today the work on calculations can begin! Private employers have a 12 month window (4 April 2018) before calculations must be published on the employer’s website and the relevant government website. Remember that public sector employers have a earlier snapshot date (31 March), their calculations need to be published by 30 March 2018 and every four years thereafter.

From 6 April

  • Unfair dismissal compensatory award – the statutory cap increases from £78,962 to £80,541.  Don’t forget that the cap will be one year of the employee’s gross salary if lower.
  • Apprenticeship levy – UK employers in the public and private sectors with annual wage bills of £3 million or more have to pay their monthly levy payments;
  • Immigration skills charge – employers who sponsor workers under tier 2 will have to pay £1,000 per year, or £364 if they are a small employer or a charity;
  • IR35 – new rules apply to public authorities paying personal service companies or other intermediaries. The public authority will need to make tax and National Insurance deductions as appropriate;
  • Salary sacrifice – relief on benefits in kind provided via salary sacrifice arrangements is being scaled back for benefits entered into from today.
Its all change in employment law in April…

Tier 2 Immigration Skills Charge – another fee to pay

As part of the government plans to reduce Britain’s reliance on migrant workers, from 6 April 2017 employers may have to pay an immigration skills charge of £1,000 per employee.

The skills charge will apply to a sponsor of a Tier 2 worker assigned a certificate of sponsorship in the “General” or “Intra-Company Transfer” route and who applies from:

  • outside the UK for a visa
  • inside the UK to switch to this visa from another
  • inside the UK to extend their existing visa

The skills charge does not apply if you are sponsoring:

  • a non-EEA national who was sponsored in Tier 2 before 6 April 2017 and is applying from inside the UK to extend their Tier 2 stay with either the same sponsor or a different sponsor
  • a Tier 2 (Intra-Company Transfer) graduate trainee
  • a worker to do a specified PhD level occupation
  • a Tier 4 student visa holder in the UK switching to a Tier 2 (General) visa
  • Tier 2 family members (“dependants”).

As the charge applies to the sponsor and not the individual, if a sponsor has paid it in respect of an individual who then seeks to change sponsor, the new sponsor will also be required to pay the levy.
A lower rate of £364 per certificate of sponsorship applies for smaller sponsors and charities. You will usually be considered a small business if:

  • your annual turnover is £10.2 million or less
  • you have 50 employees or fewer

The charge is in addition to all other application fees. Its purpose is to cut down on the number of businesses taking on migrant workers and to incentivise employers to train British staff to fill those jobs.

Tier 2 Immigration Skills Charge – another fee to pay

Increase in limits

This week new limits applying to certain awards of employment tribunals, and other amounts payable under employment legislation, have been increased.

The increases apply where the event giving rise to the entitlement to compensation or other payments occurred on or after 6 April 2017. Limits previously in force are preserved in relation to cases where the relevant event was before 6 April 2017.

Key new relevant limits are as follows:

  • Minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons: Old limit – £5,853; New limit – £5,970
  • Limit on amount of guarantee payment payable to an employee in respect of any day: Old limit – £26.00; New limit – £27.00
  • Limit on amount of compensatory award for unfair dismissal: Old limit – £78,962; New limit – £80,541
  • Maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal: Old limit – £479; New limit – £489
Increase in limits

The Trade Union Act 2016: coming to an industry near you on 1 March 2017

Following our post on 22 December 2016, “2016: A year of discontent?” the Trade Union Act 2016 (Commencement No. 3 and Transitional) Regulations 2017 SI 2017/139 have been confirmed and the main provisions of the Trade Union Act 2016 are set to come into force on 1 March 2017.

The key provisions coming into force on 1 March 2017 include:

  • a 50 per cent turnout requirement for all ballots;
  • the requirement that 40 per cent of those entitled to vote must do so in favour of industrial action in “important public service” ballots (including the health, education, transport and border security sectors);
  • new rules on information requirements, including the requirement for a clear description of the trade dispute and the planned industrial action on the ballot paper;
  • an extension of the notice required for strike action from seven to 14 days; and
  • restrictions on “check-off” arrangements which require unions to make a reasonable contribution to the costs of administration.

You can find the full regulations here.

The Trade Union Act 2016: coming to an industry near you on 1 March 2017