HR Consultant of SGB HR Services
Well we are at that time of the year again when new employment laws come into force, and as an organisation you will need to ensure that you take on board and make the necessary changes.
There is going to be increases in the National Living Wage (NLW) and National Minimum Wage (NMW), bigger pension contributions and a major overhaul to payslips. Below is what you need to know and the changes which are due to take place.
1 April — NLW increases
The NLW and NMW will increase by 4.9% for all age groups as below:
6 April — Statutory sick pay goes up
Statutory sick pay that you will need to pay if your employees are off due to ill health will increase from £92.05 to £94.25 per week. Sick pay must be paid to staff who have been ill off work for four days or more which must be paid for up to 28 weeks.
6 April — Pension contributions increase to 8%
Your employees will now need to contribute at least 5% of their pre-tax salary into their pension, and employers will contribute an extra 3% (up from 2% last year).
6 April — Cap on a “week’s pay” for redundancy and tribunal claims to increase
The cap on a week’s pay for redundancy and tribunal claims will rise from £508 to £525 while the limit on the guarantee payment payable to an employee in respect of any one day goes up to £29 from £28.The amount of compensatory awards for unfair dismissal will increase from £83,682 to £86,444.
6 April — Changes to payslips
Employers must now provide itemised payslips to all workers, whereas previously, only employees were entitled to itemised payslips. The new itemised payslips must break down workers’ and employees’ pay to show how much has been paid as well as what deductions have been made. This must include the amount and method of any part-payment.
If you do not provide your workers with an itemised payslip a tribunal can declare that there has been a breach in workers’ rights, thereby forcing a repayment to workers in respect of any deductions made.
By providing itemised payslips it makes it much easier for the HMRC to identify and possibly prosecute businesses who pay below the NMW (which, as mentioned above, is increasing in April) so be warned!
7 April — Statutory pay for maternity, paternity, adoption and shared parental leave increases
Your employees who are on maternity, paternity, adoption or shared parental leave will receive an increase in their statutory pay from £145.18 to £148.68 per week. The average earnings an employee must earn to receive these payments also increases from £116 to £118 per week.
I think there is enough here to keep you busy! Should you require assistance with the review or updating of your policies do not hesitate to contact me. on 075 5296 4444
Research and Acknknowlegements in compiling this article
Source Information – Croner-i