4 Important Employment Law Changes

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4 Important Employment Law Changes

With the end of the tax year fast approaching, there are some important changes coming into effect in April that could have a big impact on your business.

National Minimum Wage and National Living Wage Increases

The national living wage, which is the minimum wage paid to employees over the age of 25, will go up by 4.4%. This will take the rate from £7.50 per hour to £7.83 from the 1st April.

All other national minimum wages will also increase as detailed below:

Apprentice from £3.50 to £3.70
Under 18 from £4.05 to £4.20
18 to 20 from £5.60 to £5.90
21 to 24 from £7.05 to £7.38

Increases in minimum contributions for auto-enrolment pensions

Along with the increase in the national minimum and national living wages, businesses will also have to increase the minimum auto-enrolment contributions they pay towards their employee’s pensions.

As of the 6th April, businesses will have to contribute 2%, increased from 1%, and employees have to contribute a minimum of 3%, also an increase from 1%.

The minimum contributions will go up again in April 2019.

Gender pay gap report deadline

The deadline for private companies to report on their gender pay gap is fast approaching.

Businesses with over 250 employees must publish a report on their gender pay gap on the 4th April. This will then be an ongoing annual requirement and the results of the report must be published on the companies website.

Tribunal compensation increases

The maximum limit on tribunal awards increases from April, meaning and business losing a case will have to pay out more compensation. For eaxample, the maximum award for a successful unfair dismissal claim will be a whopping £98,922.

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