• Key Changes in Employment Law – April 2018

    • National Living Wage

    National Living Wage for workers aged 25 increased to £7.83 per hour. The national minimum wage (NMW) rates are now:

    • from £7.05 to £7.38 for 21 to 24 year olds
    • from £5.60 to £5.90 for 18 to 20 year olds
    • from £4.05 to £4.20 for 16 and 17 year olds
    • from £3.50 to £3.70 for apprentices.
    • 1 April 2018

    New statutory rates

    Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay and Statutory Adoption Pay increased to £145.18 per week.

    • 4 April 2018

    Gender pay gap reporting for private sector employers

    Private sector employers must publish first reports before this date (with a snapshot date of 5 April 2017).

    • 6 April 2018

    Statutory sick pay

    Statutory Sick Pay increased to £92.05 per week.

    • 6 April 2018

    Taxation of termination payments

    Changes to the way in which termination payments are taxed came into force on 6 April 2018.

    New rules will apply to any termination of employment that takes place on or after 6 April 2018 whereby all notice pay is to be treated as earnings and subject to tax and national insurance contributions – irrespective of whether or not there is a pay in lieu of notice clause (PILON) in the employment contract.

    For these purposes, the amount of notice pay may need to be calculated pursuant to a specific formula set out in statute, so it may not be as straightforward as simply operating a contractual PILON. For a termination of employment that takes place before 6 April 2018 the old rules will apply (even if the termination payment is paid after this date).

    • 6 April 2018

    A week’s pay

    The maximum amount for a week’s pay (used to calculate statutory redundancy payments) increased to £508 per week (from £489 per week). This increase is of particular relevance to those making redundancies on or after 6 April 2018.

    • 6 April 2018

    Maximum compensatory award

    The maximum compensatory award for unfair dismissal increased to £83,682 (from £80,541) where the termination is on or after 6 April 2018.

     

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