Now that we’re nicely settled into 2019, it is time to bring you an update to changes to employment laws coming into effect in the early part of this year. As an employer, it is important that you remain up to date in order to ensure that your business is compliant. First up…
National Minimum Wage Increases
Effective from April, the following increases will be made to the National Minimum (NMW) and National Living Wage (NLW) rates:
- NLW for employees aged 25 or over will rise to £8.21/hour
- NMW for employees aged between 21 and 24 will increase to £7.70/hour
- NMW for employees aged between 18 and 20 will increase to £6.15/hour
- NMW for employees aged 16 to 17 will rise to £4.35/hour
- NMW apprentice rate will increase to £3.90/hour
In addition to the above:
- Statutory sick leave will rise to £94.25/week
- Statutory maternity, paternity and shared parental disbursements will rise to £148.68/week
- Accommodation offset for employees will rise to £7.55/day
Effective from 6 April, employers will now have to ensure that anybody under their employment holding the status of ‘worker’ is issued with itemised payslips. Previously, employment law stated that ‘employees’ were the only people entitled to these but the new law will reduce any manipulation of employees by employers and ensure employees are complying with new regulations that have been put in place.
Position Pay Gap Reporting
Previously, there has been a lot criticism over gender pay gaps. New legislation that came into effect on 1 January this year was Position Pay Gap Reporting. This means any UK company listed as having 250+ employees need to provide an annual report which highlights the pay gap between their average UK worker and their Chief Executive.
Currently, the auto-enrolment pension scheme requires employees to contribute 2% of an employee’s pre-tax salary towards their pension fund, whilst employees contribute 3%, should they have not opted out of the scheme. As per new laws coming into effect during April, employers will be required to contribute a further 1% and employees a further 2% in taxes.
EU Nationals’ Status
One of the biggest concerns surrounding Brexit is that of the status of EU nationals working in the UK. Currently, the updated policy has 2 different statuses that individuals can apply for, which are ‘settled’ or ‘temporary’. EU workers who have already lived in the UK for a minimum of 5 years are entitled to apply for a settled status, whereas, any EU workers who have lived in the UK for anything less that this length of time, are allowed to live and work in the UK with temporary status.
Should you require any further information on any of the above topics, please contact the Breathing Space offices on 0113 426 7735 or email email@example.com.