April 2018: Important employment law updates

April is always one of the busiest months of the year in the world of employment law. Here is a summary of the key updates employers should be aware of:

(1) National Living Wage & National Minimum Wage

The NLW is to increase from £7.50 to £7.83 per hour while the NMW will increase as followed: –

  • 21 to 24-year-old rate from £7.05 to £7.38 per hour;
  • 18 to 20-year-old rate from £5.60 to £5.90 per hour;
  • 16 to 17-year-old rate from £4.05 to £4.20 per hour;
  • Apprentice rate from £3.50 to £3.70 per hour;

(2) Statutory Benefits

On the 1st April, statutory maternity/paternity/adoption/shared parental pay and maternity allowance will increase to £145.18 per week (currently £140.98 per week).

As of the 6th April, statutory sick pay will increase to £92.05 per week (currently £89.35 per week).

(3) Tribunal Compensation

Compensation limits are minimum awards payable under employment legislation and are set to increase on the 6th April. Increases go as followed:

  • Maximum limit on compensatory award for unfair dismissal will increase to £83,682 (currently £80,541);
  • Maximum limit on a week’s pay for calculating basic award and statutory redundancy payments will increase to £508 (currently £489);
  • Guarantee pay will increase to £28 per day (currently £27 per day);
  • The minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase to £6,203 (currently £5,970);
  • Award for unlawful inducement relating to trade union membership or activities, or for unlawful inducement relating to collective bargaining will increase to £4,059 (from £3,907)
  • Minimum amount of compensation where individual excluded or expelled from union in contravention and not admitted or re-admitted by date of tribunal application will increase to £9,474 (currently £9,118)

(4) Taxation of Termination Payments

As of 6th April, all payments made in lieu of notice, will be taxed, regardless of whether they are contractual or not.

(5) Gender Pay Gap Reporting

The 4th April is the deadline in which gender pay gap reports should be published. These results must be made public on the employer’s website and a government site. This means the public, customers, employees and potential recruits will have access to these figures.

Employers should consider taking new or faster actions to reduce or eliminate their gender pay gaps.

How can Employment Law Services (ELS) Help?

If you require employment law advice on any of the issues raised in this article, or any other employment issue give us a call today on 0370 218 5662.  You can also find out more about our fixed fee HR packages here and fixed fee employment law packages here, or get in touch.