April has traditionally been a busy month for employment law and 2019 is proving no different. The usual increases and updates to various rates and limits have taken place along with the deadline for the second round of gender pay gap reports and the introduction of the Government’s new rules on payslips.
• The latest raises to national minimum wage hourly rates were effective from 1 April 2019.
• The national living wage, which applies to workers aged 25 and over, rose to £8.21.
• The standard adult rate for workers aged 21-24 is now £7.70.
• The development rate for workers aged 18-20 is now £6.15.
• The young workers rate for workers aged 16-17 is now £4.35.
• The apprentice rate, for apprentices under 19 or over 19 and in their first year of the apprenticeship, is now £3.90.
Employment tribunal limits
• Compensation limits for employment tribunal awards are rising in line with the 3.3% increase in the retail price index.
• The maximum weekly wage figure (which is used to calculate redundancy payments and the basic award in most unfair dismissal claims) has increased to £525.
• The maximum compensatory award for unfair dismissal has risen to £86,444 but the annual salary cap will still be in place.
• The maximum penalty for an aggravated breach of a worker’s employment rights has quadrupled to £20,000.
• The new rates apply when the effective date of termination is on or after 6 April 2019.
• From 6 April 2019 statutory sick pay increased to £94.25 per week.
• The weekly rates of maternity, paternity, adoption and shared parental pay rose to £148.68 on 7 April 2019.
• The weekly rate of the maternity allowance increased to £148.68 effective from 8 April 2019.
Auto-enrolment pension contributions
• The minimum contributions employers and employees must make into auto-enrolment pensions increased from 6 April 2019. The new levels are now 3% employer and 5% employee.
• Payslips will have to be provided to all workers and not just employees as is currently the case from 6 April 2019.
• If a worker is paid on an hourly basis then the payslip must show the total number of hours worked.
• The payslips of workers whose rate varies depending on the type or hours of work must provide a breakdown.
• Workers who do not receive payslips or who receive non-compliant payslips may bring a claim.
• In the event of a successful claim a tribunal may order the repayment of any unnotified deductions made in the 13 weeks preceding the claim, even where the employer would have otherwise been entitled to make the deductions.
Gender pay gap reports
• The deadline for the second annual gender pay gap report was 4 April 2019.
• Early reports suggest that progress has been slow with the pay gap shrinking just 0.1 percent since last year and 8 in 10 UK firms paying men more than women.
For any assistance in making sure that you’re ahead of these changes, please contact us.