Employment Law Changes Coming April 2018
Significant employment law changes are due to come in from the 1st April 2018. Over the next few days all employers and HR professionals will need to be aware and respond to increases.
These include the national minimum wage, family related statutory payments, redundancy payments and sick pay.
Large employers will also face the first mandatory gender pay gap reporting deadline.
Here’s a snapshot from our employment law specialists of what’s coming into force:
- National Minimum Wage: The national living wage for workers aged 25 and over will increase by 33p to £7.83 an hour. The rates of other minimum wage bands will also increase.
- Family Related Statutory Payments: Statutory maternity, adoption, paternity and shared parental pay will rise to £145.18.
- Public Sector Equality Duties: Duties will be imposed on specified authorities in relation to socio-economic inequalities. It requires organisations to exercise them in a way that is designed to reduce the inequalities of outcome which result from a socio-economic disadvantage.
- First Mandatory Gender Pay Gap Reporting: Private and voluntary sector employers with 250 or more employees are required to publish annual information on their gender pay gap under the Equality Act 2010.
- Statutory Sick Pay: Statutory sick pay will rise to £92.05.
- Tribunal Compensation Limits: Maximum compensatory award for unfair dismissal will rise from £80,541 to £83,682.
- Statutory Redundancy Payment: It will raise from £489 to £508. The maximum amount of a week’s pay, used to calculate statutory redundancy payments and various awards including the basic and additional awards for unfair dismissal.
- Tax Free Payments: All payments in lieu of notice, including payments where there is no contractual PILON power, will be subject to income tax and class 1 NICs.
- Maternity Allowance: Statutory maternity allowance pay will rise to £145.18.
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