Spring is here and as always that means new Employment Laws! Here are 9 things that you need to look out for- Employment Law Update 2017
National Minimum Wage increase
Even though there was already an increase in October, we see yet another increase this April. The new rates are:
£7.50 per hour – 25 yrs old and over
£7.05 per hour – 21-24 yrs old
£5.60 per hour – 18-20 yrs old
£4.05 per hour – 16-17 yrs old
£3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
Pensions advice allowance is introduced
Members of a defined-contribution and hybrid pension scheme will be able to take a tax-free amount of £500 from their scheme, to be redeemed against the expense of financial advice. This will come into effect from 6th April.
Statutory family-related pay and sick pay rates will increase
The weekly rate of statutory maternity, paternity, adoption and shared parental leave pay will increase to £140.98 for pay weeks commencing on or after 2nd April. Statutory sick pay will also increase to £89.35 from 6th April 2017.
Statutory redundancy pay increase
If you dismiss an employee (with two years’ service or more) on the grounds of redundancy you must pay them an amount based on their weekly pay, length of service and age. The weekly pay is subject to the maximum amount of £489 (a £10 increase) from April.
Gender Pay Gap Reporting
Every year, large employers (250 employees or more) will have to report on their gender pay gap, including any bonus payments. They will also have to report on the proportion of male and female employees in different pay brackets. The data provided will need to be a ‘snapshot’ as at the 5th April (31st March for the public sector) each year, starting this April. The information will need to be published on their website and also uploaded on to a Government website.
This levy is designed to fund apprenticeship training and it will come into force on the 6th April. A monthly levy will be paid via PAYE by the employer if their annual wage bill exceeds £3 million.
Immigration skills charge
Employers that sponsor skilled workers under Tier 2 of the immigration points system will have to pay a levy of £1,000 per certificate of sponsorship per year for each employee employed under Tier 2. For small employers and charities this will be reduced to £364.
IR35 – in the public sector
From April, if an individual providing services to the public sector through an intermediary could be viewed as an employee if the intermediary did not exist, then IR35 will apply and the intermediary must make deductions for income tax and national insurance on the salary and wages that it pays to the individual.
Tax advantages under salary sacrifice schemes to be limited
Benefits that are provided under a salary sacrifice scheme that result in tax and NIC advantages are to be limited from April 2017. Arrangements already in place will be protected until April 2018 (and some until April 2021).
Need advice on any of the new changes coming in? Give us a call on 0115 870 0150 or email us at firstname.lastname@example.org. Visit our website here.