As we return from the festive break we welcome a number a changes in the world of work. So, what can we expect to see in the world of Employment Law in the coming year?
Increase in National Minimum Wage Rates
|1 April 2018 (Hourly)||1 APRIL 2019 (Hourly)|
|National Living Wage||£7.83||£8.21|
Increases in Statutory Family and Sick Pay Rates
The current weekly rate of statutory maternity pay is £145.18, or 90% of the employee’s average weekly earnings, whichever is lower.
The rate of statutory maternity pay is expected to rise to £148.68 from April 2019. The new rate of pay will also apply to statutory paternity pay, shared parental pay and adoption pay.
The rate of statutory sick pay is also increasing from £92.05 to £94.25 on 6 April 2019.
Executive Pay Gap Reporting
New regulations under the Companies Act 2006, made on 17 July 2018, require UK listed companies with more than 250 UK employees to report annually on the pay gap between their Chief Executive and their average UK worker. This differs from the reporting required in 2018 which set out the differences in pay between men and women in the private and voluntary sector.
These changes came into force on 1 January 2019 with the first report due in 2020.
Itemised Pay Statements to Workers
The law requires that a payslip is provided to all employees showing the earnings before and after deductions and the amount of deductions made which may change from period to period.
To date, there had been no obligation for employers to provide a payslip to non-employees, contractors, freelancers and workers.
With effect from April 2019, employers will be required to include on payslips, the total number of hours worked when the pay varies for the hours worked i.e. those who work variable hours or on zero hour contracts. In addition, the right to an itemised pay statement will be extended to all workers and not just employees.
Increases to Auto-Enrolment Contributions
The minimum contributions for auto-enrolment pension schemes will increase for employers and employees from April 2019. Currently, employers must contribute a minimum of 2% with employees contributing 3%.
Under the changes, employers and employees will now be required to contribute a minimum of 3% and 5% respectively.
Taxation to Termination Payments
In the 2016 Budget, the government announced that termination payments over £30,000 would be subject to employer Class1A national insurance contributions (NICs) from April 2018. In the 2017 Budget, the government announced that the change would be delayed for a year and take effect from April 2019.
However, in the Autumn 2018 Budget, it was announced that this change will be further delayed until April 2020.