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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

Consultation on extending redundancy protection for new parents

Returning to work after maternity can be a daunting prospect for new mums, and it is important for them to feel that they will be valued and supported upon their return. Unfortunately, this is not the case for many women. With Brexit fast approaching, Theresa May is said to be "determined to do even more as we leave the EU", including by building on the current EU requirements on maternity and paternity leave protection.
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Consultation on extending redundancy protection for new parents

So, where’s “mutual agreement” on this pension form?

Pensions and Employment speak different languages and as an employer it's important to have a team working for you that understands both. A recent example arose in the Pensions Ombudsman case of Mr. O (PO-7782).
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So, where’s “mutual agreement” on this pension form?

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…

Tribunal awards and statutory redundancy pay – annual increases

Where the event that gives rise to an award of compensation, e.g. an unfair dismissal or a redundancy, happens on or after 6 April 2016, new increased compensation or payment amounts will apply.

The limit on a week’s pay which is used to calculate statutory redundancy payments will increase from £475 to £479.

The maximum compensatory award for unfair dismissal will increase from £78,335 to £78,962. This remains subject to the cap on the compensatory award of 52 weeks’ pay.

Tribunal awards and statutory redundancy pay – annual increases