Autumn 2016 Employment Law update

There is not much information to give the SME business audience in terms of employment law updates for October 2016. So here are the basics and some upcoming changes which maybe of interest for early 2017

You might like to look at the blog on the Tribunal Statistics which have just been released as well

Minimum wage (1 October 2016)

Apprentice            £3.40 per hour

Ages 21 to 25         £6.95 per hour

Ages 18 to 21         £5.55 per hour

Ages 16 to 18         £4.00 per hour


Ones to watch…..

Changes to Apprenticeships

This is expected in April 2017, an Apprenticeship levy will be introduced and set at 0.5% of the employers pay bill. The levy will go towards funding apprentice training and assessment.

Also Apprenticeship providers will no longer be able to advertise courses as “apprenticeships” if they are not actually a statutory apprenticeship.


Tax-free Childcare

The Government is likely to introduce a new scheme in early 2017.  This scheme will give 20% of the yearly childcare costs (capped at £2000), for children under 12.  The parents have to earn at least the equivalent of minimum wage for 16 hours per week and not more than £100k per parent.

Something to make your employees aware of as the introduction date comes closer.


And just for interests sake….

Public sector exit payments

This news I personally find gratifying as I have been very annoyed over the years about huge settlements to high level public employees which could have been avoided by better management and going through a legal dismissal process. It won’t stop poor management or legitimate claims in court but it might mean poor leaders don’t go from job to job without personal penalty.

For those employees, earning over £80k who return to the public sector within one year of leaving will need to repay any exit payment made by their previous public sector employer.

And there will be a cap on exit payments set at £95k.

Government hasn’t said when this will be introduced.