CURWENS EMPLOYMENT BLOG
Welcome to the first of many employment blogs from Curwens. Not only will we be providing regular updates on what’s what in the law, but also a run down of the most interesting employment cases in the news.
The beginning of April every year usually sees a whole raft of employment law changes to include various statutory rates and limits. You will be glad to read that this April was no different!
The end of the tax year can be an extremely busy time for businesses and it is easy for legal changes to go unnoticed. As a business owner, it is imperative that you ensure compliance with new legal obligations, and as an employee it is good practice that you are aware of how changes in the law may impact you and your employment, and often the money that you are entitled to receive.
Some of the most important changes that came into effect are:
1. Pay slip Changes
Pay slips must now:
(i) Set out the number of hours paid if hours worked is variable;
(ii) Be issued for all workers, not just employees.
The changes are applicable to pay period and pay slips issued after 6 April 2019.
2. National Minimum Wage (NMW)
The pay hour for all categories of workers has increased as follows from 1 April 2019:
National Living Wage (NLW)
• Age 25 and over – £7.83 to £8.21
National Minimum Wage
• Age 21-24 from £7.38 to £7.70
• Age 18 – 20 from £5.90 to £6.15
• Under 18’s (no longer compulsory school age) from £4.20 to £4.35
What should employers do?
– Keep adequate records of all payments so that compliance with National Minimum Wage rules can be evidenced;
– Send letters to all employees informing them of the increased hourly rates due to increase in NMW
3. Statutory rates of pay increased
• Weekly rates of statutory maternity, paternity, adoption and shared parental pay – £145.18 to £148.68 from 7 April 2019
• The weekly rate of statutory sick pay from £92.05 to £94.25 from 6 April 2019.
• Statutory Redundancy Pay maximum from £15,240 to £15,750 from 6 April 2019.
• Statutory limit on a week’s pay from £508 to £525 from 6 April 2019.
Employers are reminded to check that the correct limits have been used to calculate any redundancy payments for dismissals on or after 6 April 2019.
4. Limits to Tribunal Awards increased
From 6 April 2019, the maximum compensatory award for unfair dismissal increased from £83,682 to £86,444.
5. Pension Auto Enrolment contributions
From 6 April, the minimum employer contribution increased to 3% of qualifying earnings and worker contributions increased to 5% of qualifying earnings.
If you would like further advice on implementing the changes above, or any area of employment advice please contact Senior Associate Kaajal Nathwani on firstname.lastname@example.org ; Tel: 020 8884 7211.