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Hot Topics for Employment Law - April 2019

Below we take a look at some significant changes expected in employment law in April 2019. 

Gender pay gap report

Employers with 250 + employees must report on their percentage gender pay gap annually.  Many will remember the headlines last year such as “Virgin Money reports a 36% gender pay gap”. 

The deadline for private sector companies to publish their reports is 4 April, so we wait to see whether companies are reporting a narrowing gender pay gap or whether or not it has in fact widened.

Wages

The new national minimum wage rates that apply from 1 April are as follows:

  • Workers aged 25 and over - £8.21 an hour (National Living Wage)
  • Workers aged 21-24 - £7.70 an hour
  • Development rate for workers aged 18-20 - £6.15 an hour
  • Young workers rate for workers aged 16-17 - £4.35 an hour
  • Apprentice rate (workers under 19 or in first year of apprenticeship) - £3.90 an hour.

Payslips

Two important changes will come into force on 6 April:

  • Where people’s pay varies according to the number of hours worked, employers must include the total number of hours worked on the payslip.
  • Payslips must be given to ‘workers’ and not just employees.

Pension

Currently, automatic enrolment requires employers to contribute a minimum of 2% of an eligible worker’s pre-tax salary to their pension pot, with the individual contributing 3% themselves.

However, from 6 April employers and employees will now have to contribute a minimum of 3% and 5% respectively.

Statutory pay

The weekly amount for statutory family pay will increase to £148.68 from 7 April. This rate will apply to maternity pay, adoption pay, paternity pay, shared parental pay and maternity allowance.

The weekly rate for statutory sick pay will increase to £94.25 from 6 April 2019.

 

For more information please contact Hannah Dahill, Associate Director, on 01267 493130 or email hdahill@morganlaroche.com.

 

 

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