April is almost upon us again and it is time to make sure you understand what the legal changes are, and what action you may need to take. These changes apply to all employers.
- National Living Wage Increase, effective from 1st April. Check that any deductions you take from wages do not bring staff below the National Minimum Wage (click here to read more)
- Tribunal Penalties increase effective 6th April. This is for employers who continually break the law. The penalties will increase to £20,000. Over recent years tribunal claims are up by 118%, Avoiding claims should be a priority for all employers.
- Pension Contributions increase to 8% effective 6th April. Employee Contribution 5%, Employer Contribution 3%. Alternatively employers can opt to pay the full 8%.
- Changes to Payslip rules effective 6th April. Itemised payslips must be given to all workers not just employees – (click here to read more)
- Statutory Sick Pay increases, effective 6th April. Increase to £94.25 per week (See table below)
- Statutory Maternity, Paternity, Adoption and Parental Leave pay increase effective 7th April. (See table below)
Statutory Sick Pay|
Statutory Maternity Pay|
Statutory Paternity Pay|
Statutory Adoption Leave|
Statutory Shared Parental Leave|
|National Minimum Wage||2018||2019|
|25 and over||£7.83||£8.21|
What action should you take?
- Make sure that whoever manages your payroll is aware of the increases to these statutory payments.
- Double check you comply with the rules on payslips and that any deductions to pay do not take workers below the new National minimum wage rate
- Finally, it’s a good time to check your contracts are up to date and put you in a strong position as an employer
Please get in touch if you have any questions about this Employment Law update or if you would like your contracts reviewed.
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