We can’t quite believe that in a few weeks we’ll be half way through 2019. We thought we’d have a quick look back on some of the legal changes that have taken place, affecting employment law…
- 21 January 2019 – Right to Work – Opening of EU settlement scheme trial (read more about this here). EU citizens and their families will be able to apply to get either settled or pre-settled status through the EU Settlement Scheme.
- 28 January 2019 – Online checks for ‘right to work’ – Employers will be able to rely on an online Right to Work Checking Service to demonstrate compliance with illegal working legislation. (For more information see here).
- 1 April 2019 – Increase in National Living and Minimum Wage
- The new rates are as follows:
- Age 25 and over: National Living wage increase from £7.83 to £8.21 per hour;
- Age 21 to 24 (inclusive): increase from £7.38 to £7.70 per hour;
- Age 18 to 20 (inclusive): increase from £5.90 to £6.15 per hour;
- Age 16 or 17 (inclusive): increase from £4.20 to £4.35 per hour; and
- Apprentice rate: increase from £3.70 to £3.90 per hour.
- 1 April 2019 – Changes to auto enrolment rates – The minimum contribution rates will increase to 3% for employers and 5% for employees.
- 6 April 2019 – Itemised pay slips – The right to receive a written itemised payslip will apply to workers as well as employees. The payslips of workers and employees paid by the hour must clearly set out the number of hours for which they have been paid. You can read more about this here. All payslips must include:
- the gross amount of the wages or salary;
- net amount of wages or salary payable;
- amounts of any variable or fixed deductions, and the purposes for which they are made; and
- total number of variable hours worked (when workers and employees get a different wage depending on the hours they have worked).
- 6 April 2019 – Tax changes – The personal allowance will increase to £12,500 and the higher rate tax threshold to £50,000. Class 2 NICs will be abolished.
- 6 April 2019 – Increased statutory payments and Tribunal awards – The maximum compensatory award for unfair dismissal will increase from its current rate of £83,682 to £86,444. A week’s pay (used to calculate statutory redundancy payments and the basic award in unfair dismissal claims) will also increase from its current rate of £508 (gross) to £525.
- 6 April 2019 – Greater penalties for aggravated breach of a worker’s employment rights – The maximum compensation will increase from £5,000 to £20,000.
- 6 April 2019 – Increases to the statutory rates for maternity, paternity, shared parental pay, adoption and sick pay – Everything other than sick pay will increase from £145.18 to £148.68 or 90% of average earnings if lower. Statutory sick pay will increase from £92.05 to £94.25.
- April 2019 – Apprenticeship levy – Employers may transfer up to 25% of their apprenticeship levy to support apprentices in their supply chain.
- In addition there are a number of new company reporting requirements that have taken effect from the start of 2019. These include:
- Employee engagement: All companies with 250+ UK employees will be required to report on employee engagement as part of their annual directors’ reports – including what measures were taken to introduce or develop arrangements for providing information to employees and consulting with them about decisions likely to affect them. Directors will also need to explain how they engaged with employees and had regard to their interests, and how this has impacted on key decisions of the company.
- CEO pay ratios: Quoted companies (i.e. those listed on the London Stock Exchange, an EEA exchange, the New York Stock Exchange or NASDAQ) with more than 250 UK employees will be required to report pay ratio information in their annual directors’ remuneration reports. The pay ratio information will need to compare the total remuneration of the company’s CEO with the remuneration of employees at the 25th, 50th and 75th percentiles of the workforce, and provide an explanation of the ratios. Going forward, it is intended that the ratio information should cover a ten-year period.
