Recent Changes in Employment Law

 

 

 

Recent Changes in Employment Law

Employment Law is a rapidly changing area of law. Below are a couple of recent changes to the legislation, together with the details of some further proposed changes.

Itemised Payslips

There are two important changes to the Employment Rights Act 1996, affecting pay slip information. The following changes will come into force on 6th April 2019:

• Employers must include the total number of hours worked where the pay varies according to the hours worked, for example under variable hours or zero-hour contracts.
• Payslips must be given to ‘workers’ and not just employees.

It is important to note that where a worker believes that they should have received a payslip, or where they believe that the information contained within the payslip is lacking the requisite information, they may bring a claim to an Employment Tribunal.  The Tribunal has the power to award repayment of unnotified deductions, even where the employer was entitled to make such deductions.

Employment Tribunal Awards

With effect from the 6^th April 2019, new limits were announced for certain employment tribunal awards:

• The maximum compensatory award for ordinary unfair dismissal, where the dismissal takes place on or after the 6^th April is £86,444;
• The maximum statutory redundancy payment is £15,750, and the maximum weekly amount used to calculate this has increased to £525.

Minimum Wage Rates

With effect from the 1^st April 2019, the following rates will apply:

• The National Living Wage for workers aged 25 and over is £8.21
• The National Minimum Wage for workers aged 21 – 24 is £7.70
• The rate for workers aged 18-20 is £6.15
• The Young Workers rate, for those not under an apprenticeship scheme is £4.35
• The Apprenticeship Rate for those under the age of 19; or those over 19 but in their first year of an apprenticeship is £3.90. For those apprentices who are over the age of 19, and who have completed the first year of their apprenticeship, they are entitled to the minimum wage for their age category

 

Future Changes…

Paid Bereavement Leave

It is being proposed that in 2020, parents will be entitled to bereavement leave of up to 2 weeks, following the death of a child under the age of 18.  There will be no required length of service, and in certain circumstances, employees may also be entitled to be paid for this leave.

Annual Executive Pay Gap Reports

Annual executive pay gap reports are to be published for the first time in April 2020.

The taxation of termination payments:

With effect from the 6^th April 2020, employer class 1A national insurance contributions, as well as tax, will now be payable on that element of a termination payment which exceeds £30,000.00.

Post written by Renata Del Luongo

May 2019