Every April introduces changes to employment law and this year is no exception.   Here are the key changes you should be aware of that will affect you whether you are a business owner or an employee:

  • Gender Pay Gap Reporting – all employers with 250 employees or more (as at April 2017) should have already published their first gender pay gap data, showing a snap shot of their employee pay as at 5th April 2017 (for private companies and charities) or 31st March 2017 for public sector employers.  This is now an annual requirement and may lead to an increase in equal pay claims being brought if employees believe that they are not receiving equal pay and the GPG data shows a significant disparity in average pay.
  • National Living/Minimum Wage Increases – With effect from 1st April 2018 the National Living Wage for workers aged 25 and over increased to £7.83 per hour on 1 April 2018 and National Minimum Wage rates increased to £7.38 per hour for workers aged 21 to 24, to £5.90 per hour for workers aged 18 to 20 and to £4.20 for workers under 18 who are no longer of compulsory school age.
  • Family Friendly Statutory Payment Rate Increases – With effect from 1st April 2018 the weekly rate of statutory maternity, paternity, adoption and shared parental pay increased to £145.18 for payments commencing on or after this date.
  • Statutory Sick Pay Rate Increase –  As of Friday 6 April the weekly rate of SSP increases to £92.05.
  • Statutory Redundancy Pay Increase – As of Friday 6 April the new weekly cap used to calculate the statutory redundancy payment increases to £508.  This new rate should be used when calculating redundancies for terminations occurring on or after 6th April 2018, including those where the statutory notice (if given) would have expired on or after 6th April 2018.
  • Tax Treatment of Notice Payments – As of Friday 6 April there has been an important change to the rules relating to taxation of termination payments for terminations occurring either today and after today.  This change means that it is no longer possible to pay a departing employee’s payment in lieu of notice (PILON) as a tax free sum under the £30,000 tax exemption rules if there is no PILON clause in their contract, no custom and practice of paying PILON or implied right.  Whether or not the employer has a contractual right or not, all PILON payments are taxable and the £30,000 exemption will no longer apply.

If you are affected by these changes and need employment advice, contact Karen Bristow on 01256 305508.