There are a number of employment law developments on the horizon in the 2018 for which all employers should be budgeting. Make sure you and your business stay ahead of these changes.
Pension auto enrolment
On 6 April 2018, there will be an increase to minimum auto enrolment pension contributions for both employers and employees. As it stands, the current minimum contribution for both parties is 1% but this will increase to 2% for employer contributions and 3% for employee contributions from April. There is a further increase scheduled in April 2019 which will bring the figure to 3% for employers and 5% for employees.
Living and minimum wages
There will be an increase in living and minimum wage rates on 1 April 2018, with the national living wage for workers aged 25 and over to be increased to £7.83. The scheduled changes to living and minimum wage rates are summarised as follows: 25+ £7.83 21-24: £7.38 18-20: £5.90 16-17: £4.20 Apprentice: £3.70
Holiday pay
The calculation of holiday pay has been in a state of flux during the past few years, most recently with the decision of the European Court of Justice in the case of King v Sash Windows, which suggests that workers can claim unpaid accrued holiday pay backdated for up to 25 years. There are likely to be further developments and we will keep you updated. We will be providing a full employers guide to holiday pay for our retained clients.
Taxing termination payments
One change to look out for when dealing with Settlement Agreements is that, from April 2018, all payments in lieu of notice will be subject to income tax and National Insurance deductions. It is currently possible to pay non-contractual payments in lieu of notice as damages, which means that they do not attract tax (subject to a £30,000 maximum). That distinction will be abolished in 2018 and all payments in lieu will be taxable.
Data protection
The General Data Protection Regulation will be coming into force in May 2018 and will offer increased rights and protection to individuals in respect of their personal data. We will be providing more details on these Regulations in the weeks ahead and a comprehensive policy for our retained clients.
Employment Tribunal Fees
The impact of the abolishing of employment tribunal fees, following the Supreme Court decision on the Unison Judicial Review at the end of July 2017, is already starting to bite. Early indications are that there has been an increase in the number of claims brought by employees by up to 70%. Yet another good reason to get local, experienced and expert employment lawyers to assist with your business.
Contact Greystone Legal for a no obligation quotation for comprehensive human resources and employment law cover. Tel: 01325 787 007