2019 – HR and Employment Law changes employers need to know
In 2018, employers and managers had many employment law and HR changes to deal with. This included the introduction of GDPR, gender pay gay reporting, changes to taxation of termination payments and increases to the NMW.
2019 is set to be another busy year for employers; we have provided an overview of what to expect in the coming months.
Executive Pay Reporting
From 1st January 2019, UK based companies who employ over 250 UK employees will be expected to publish the pay gap between their CEO and average worker.
It is important that larger organisations are prepared for not only the figures but any potential implications these figures may have on the company’s reputation and employee morale.
On 29th March 2019, the UK will officially cease to be a member of the EU, although a transition period will remain in place until the end of 2020.
The EU Settlement Scheme will ensure EU workers in the UK will be able to obtain settled or pre-settled status. This means EU workers will be able to live and work in the UK after 31st December 2020. For individuals to have the right to settled status, they must have lived continuously in the UK for 5 years. It remains unknown how non-UK resident citizens will be affected by Brexit.
National Minimum Wage
From 1st April 2019, the National Minimum Wage and National Living Wage will both increase.
At present, the National Living Wage (the rate of pay for those aged 25 and over) will increase from £7.83 per hour to £8.21 per hour.
The National Minimum Wage (the rate of pay for those under 25) will increase as followed:
- From £7.38 to £7.70 for those between 21 to 24-year olds;
- From £5.90 to £6.15 for between 18 to 20-year olds;
- From £4.20 to £4.35 for 16- and 17-year olds;
- From 3.70 to £3.90 for apprentices.
From April 2019, employers will be expected to provide itemised payslips for employee’s wages which vary on how many hours they have worked. Employers will be expected to include the number of hours the employee is being paid for.
Before this new legislation comes into force, employers should:
- Ensure payroll processes are up to date and ready to collect new information required;
- Adjust the format of current payslips so that this new information can be included.
How can Employment Law Services (ELS) help?
If you are an employer who requires assistance with any of the issues raised in this blog contact us today for your free consultation 0370 218 5662.