Update on Legislation March 2019

In summary:

From 1 April 2019: The National Minimum Wage and National Living Wage will increase:

  • 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

From 6 April 2019:

Compensation limits applying to unfair dismissals and a week’s pay will increase:

  • A week’s pay will increase to £525
  • The limit on the maximum unfair dismissal compensatory award rises to £86444.
  • Maximum basic award for unfair dismissal and statutory redundancy payment rises to £15750.
  • Minimum basic award for unfair dismissal - £6408

 

Statutory Sick Pay rises from £92.05 to £94.25. The lower earning limit rises from £116 to £118.

Payslip Changes: All payslips must include the number of hours an employee has worked if their pay varies in relation to time worked.

Pension Contributions: minimum employee contributions to workplace pensions increase from 3% to 5%; and employer’s minimum contributions increase from 2% to 3%.

Pay Gap Reports: Employers with more than 250 employees are required to publish their second report on their pay gap, as it existed on 5 April 2018, by 6 April 2019 (30 March for public sector employers).

From 7 April 2019:

Statutory Maternity, Paternity, Adoption and Shared Parental Leave rises from £145.18 to £148.68 a week or 90% of the employee’s average weekly earnings, whichever is lower.

BREXIT

On the day that the UK intended to leave the European Union (EU), it remains unclear when and how the UK will withdraw from its EU membership.

The Brexit SI Tracker helps you follow legislative changes in the event of UK's exit from the EU.

When the UK leaves the EU, the European Union (Withdrawal) Act 2018 will repeal the European Communities Act 1972 and existing EU law will be converted into domestic law. However, much of EU employment law has been brought into effect via UK legislation, which will remain in force post-Brexit unless and until amended. Therefore, the UK's withdrawal from the EU is unlikely to have an immediate impact on employment law.

Many employment rights do not stem from the EU. Those that stem from the EU are: TUPE, Working Time, Holidays and Holiday Pay, Collective Redundancy Consultation, Agency Workers, Rights on Insolvency, Parental Leave, Pregnancy and Maternity (in part), some discrimination rights have been extended by EU, Fixed Term employees, part time employees and Data Protection. 

In anticipation of a “no-dealBrexit, the Government has published a series of notices on how to prepare for a no-deal Brexit. In the event that there is no negotiated Brexit deal, the Government has identified two areas that will be affected: employees who work in some EU countries, employed by a UK employer, may not be protected on the insolvency of the employer; and regulations will be amended so that it will not be possible to make a new request to set up a European Works Council or information and consultation procedure.

Employment Rights (Amendment) (EU Exit) Regulations 2019 and Employment Rights (Amendment) (EU Exit) (No.2) Regulations 2019 have now been made and will make various technical amendments to employment legislation in Great Britain in the event of a no-deal Brexit.

Disclaimer

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