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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?

National Living Wage to increase by 4 per cent in April

The Chancellor has confirmed that the National Living Wage (NLW) will increase in April 2017 from £7.20 to £7.50 per hour. This represents an increase of 4 percent.

The new NLW for workers aged 25 and over came into force on 1 April of this year, and is a premium added on to the National Minimum Wage (NMW). The current NMW rates are as follows:

  • Workers aged 21 to 24: £6.95
  • Workers aged 18 to 20: £5.55
  • Young workers aged under 19 but above compulsory school age who are not apprentices: £4.00
  • Apprenticeship rate: £3.40

It is not clear at this time whether the NMW will also increase in April. However, the government states that its aim is to increase the NLW to £9 per hour by 2020. Given the uncertainty that Brexit has created for the economy and the labour market, only time will tell whether this aim is successfully implemented.

National Living Wage to increase by 4 per cent in April

Insight: UK Employment Law Round-up – June 2016

In this issue we look into the implications of misusing data in the employment context. In particular, we utline recent ICO prosecutions of employees for unlawfully obtaining data. We also look at a decision involving interim relief and an order for the deletion of data.

UK Employment Law Round-up – June 2016In our case law review we also analyse the Advocate General’s view on a ban on wearing a headscarf at work and whether that is discriminatory under the European Directive.

For those concerned about issues involving working time, there is a helpful clarification about injury to feelings awards in the context of Working Time Regulations claims.

There are also some indications of future legislative changes in relation to the National Minimum Wage and increasing the representation of black and minority ethnic workers in the workplace.

Read the full newsletter here.

Insight: UK Employment Law Round-up – June 2016