Employment Law Changes – April 2019
Thursday, April 4, 2019
Thursday, April 4, 2019
Here below we set out the details behind the important employment law changes that will apply to employers in the UK this month.
The National Living Wage for workers aged 25+ increases from £7.83 to £8.21 per hour.
The national minimum wage (NMW) rates will increase as outlined below:
£7.38 to £7.70 for 21 – 24 year olds
£5.90 to £6.15 for 18 – 20 year olds
£4.20 to £4.35 for 16 – 17 year olds
£3.70 to £3.90 for apprentices.
Gender Pay Reporting – Private Employers and Voluntary Sector organisations with 250+ employees must submit and publish their snapshot reports covering variances in pay by gender by 6th April. Public Sector employers had a deadline of 30th March.
Statutory Maternity Pay (SMP) – weekly rate for first 6 weeks 90% of the employee’s average weekly earnings SMP – weekly rate for remaining weeks £148.68 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory Paternity Pay (SPP) – weekly rate £148.68 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory Adoption Pay (SAP) – weekly rate for first 6 weeks 90% of employee’s average weekly earnings SAP – weekly rate for remaining weeks £148.68 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory Shared Parental Pay (ShPP) – weekly rate £148.68 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory Sick Pay – SSP rises from £92.05 to £94.25 per week.
Redundancy calculation – the maximum for a week’s pay rises to £525. This increase will apply to any organisation making redundancies on or after 6th April 2019. The maximum basic redundancy pay will increase to £15,750 whilst the compensatory award will be £86,444
Unfair Dismissal – The maximum week’s pay moves to £525. The maximum compensatory award increases to £86,444 and applies to cases where the effective date of termination is 6th April 2018 or later.
All workers have the right to an itemised pay statement from 6th April. (Employees already have this right)
CEO pay gap reporting
New legislation came into force from 1st January 2019 requiring companies with more than 250 employees to publish their executive pay gap. Reports are due January 2020, employers should already have started collating data for the reports. The reports will need to show the gap between the total amount paid to their CEO and the average pay for an employee.