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Low Pay Commission – minimum wage underpayment on the rise

A new report from the Low Pay Commission has found that the underpayment of workers on statutory minimum wage increased in 2018.
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Low Pay Commission – minimum wage underpayment on the rise

High Court finds that directors can be liable for breach of employment contract

In the recent case of Antuzis & Ors v. DJ Houghton Catching Services Ltd & Ors, the High Court concluded that Mr Houghton (director) and Ms Judge (company secretary) were personally liable for the company's breaches of contract.
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High Court finds that directors can be liable for breach of employment contract

Statutory employment changes from April 2019

As April fast approaches, employers should make sure they are ready to implement the increases to statutory pay, as well as some other important statutory changes which will come into effect next month.
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Statutory employment changes from April 2019

National minimum wage: BEIS launches consultation on salaried hours work and salary sacrifice schemes

In the week before Christmas, the Department for Business, Energy and Industrial Strategy (BEIS) launched a consultation on the National Minimum Wage (NMW) rules regarding salaried workers and the operation of salary sacrifice schemes. In a letter sent to the British Retail Consortium, business secretary Greg Clark promised to review NMW rules that "unnecessarily burden and penalise" employers after technical breaches have landed several large retailers in trouble. Industry leaders have said it is "essential" that the rules are updated to reflect modern work practices.
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National minimum wage: BEIS launches consultation on salaried hours work and salary sacrifice schemes

Taylor Review – update

The House of Commons Work and Pensions and Business, Energy and Industrial Strategy Committees (the Committees) made recommendations in November 2017 for addressing the issues raised in the Taylor Review. These included:
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Taylor Review – update

Employers “named and shamed” for failure to pay the National Minimum Wage

On 9 March 2018 the Department for Business, Energy and Industrial Strategy named and shamed 179 employers for paying their staff below the National Minimum Wage (NMW). Restaurant chain Wagamama topped the list, but claimed that a misunderstanding as to how the NMW Regulations apply to staff uniforms was to blame.
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Employers “named and shamed” for failure to pay the National Minimum Wage

National Minimum Wage Increase

Workers aged over 25 will receive an inflation-busting increase of 33p an hour in their national minimum wage. An above-inflation pay rise of 4.4 per cent starting April 2018 is over the 3 per cent rate of inflation which is in place at the moment. Following this, full-time workers will receive a £600 annual increase.
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National Minimum Wage Increase

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…

National Minimum Wage and National Living Wage set to increase in April

Following our post on 1 December 2016, “National Living Wage to increase by 4 per cent in April“, the draft National Minimum Wage (Amendment) Regulations 2017 have now been published.

The draft Regulations are intended to come into force on 1 April 2017 and will increase the National Living Wage from £7.20 to £7.50 per hour. The new National Living Wage for workers aged 25 and over came into force on 1 April 2016, and is a premium added on to the National Minimum Wage.

The National Minimum Wage rates will also increase in April as follows:

  • Workers aged 21 to 24: £6.95 to £7.05 per hour
  • Workers aged 18 to 20: £5.55 to £5.60 per hour
  • Young workers aged under 18 but above compulsory school age who are not apprentices: £4.00 to £4.05 per hour
  • Apprenticeship rate: £3.40 to £3.50 per hour
National Minimum Wage and National Living Wage set to increase in April

The case for and against: should we get rid of unpaid internships?

In our article published this week on HRZone, we consider whether or not the UK should ban unpaid internships. This article looks at the applicability of minimum wage rates to interns and the existing protections that they have in respect of employment law. It also considers what more could be done to safeguard the legal rights of interns and offer equality of opportunity.

Click here to read the full article.

The case for and against: should we get rid of unpaid internships?