There are some important employment law changes anticipated this year likely to affect employers and businesses throughout the UK. Here’s what you can expect:
Statutory rates and limits
April usually sees an increase to the statutory payments for time off work including maternity, paternity, adoption, parental and shared parental leave. After two years at the same level, the rates will be increasing on 10 April 2017, to £140.98 or 90% of normal weekly earnings. Statutory sick pay (SSP) is also increasing on 10 April 2017 to £89.35.
Paying living and minimum wage 2016 saw the introduction of the national living wage and from 2017, increases to both living and minimum wage will take place in April which previously took place in October each year. The government will continue to focus on making sure employers are correctly paying the National Minimum Wage (NMW) and National Living Wage (NLW) in 2017 and the national living wage (for those aged 25 and over) will increase on 1 April 2017 to £7.50 per hour.
Salary sacrifice benefits removed
The tax advantage will be removed for all salary sacrifice schemes from April 2017 except for the provision of pensions, vouchers and cycle to work schemes and ultra-low emission vehicles. Schemes in place before April 2017 will be protected from these changes until April 2018 with some protected until 2021.
Gender pay gap reporting
The law requiring employers to publish a gender pay gap report will come in from 6th April 2017 which will mean that employers with 250 or more employees will have to publish the hourly pay gap and annual bonus gap between men and women. Businesses will have up to a year to publish the information on their own website. The reporting will include information about the average pay and bonus pay across the organisation, as well as information on the number of men and women within each quartile of the company’s pay distribution.
April 2017 will also see the start of the apprenticeship levy, a government initiative to create three million apprenticeships by 2020. Employers with an annual paybill of £3m or more will have to pay 0.5% of pay amount into a digital apprenticeship account.
Join us for our free legal yearly update from Paul Burton at Frettens Solicitors on March 7th 2017 who will be giving an overview of the legalities of both new and current employment law legislation. Book your place here >
Claire has over 20 years Recruitment experience. A specialist in the regional recruitment marketplace, Claire has extensive local knowledge and holds a reputation for quality, integrity, honesty and excellent matching. Heading up the HR and Office & Commercial Divisions of Bond Williams. Claire is responsible for the overall growth and …