Employment Law Update

15th February 2018

5 Key Dates and Changes in 2018

1. Gender Pay Gap Reporting

To address the gender pay gap, the Government has introduced a new requirement for all large organisations (those with 250 or more employees) to publish statutory calculations each year including the difference in hourly earnings between male and female employees as well as the gap in bonus pay.

Public sector employers must publish their first reports by 30 March 2018 (with a snapshot date of 31 March 2017).

Private sector employers must publish their first reports by 4 April 2018 (with a snapshot date of 5 April 2017).

2. Increase in Minimum Wage, National Living Wage and Statutory Payments

As of 1st April 2018, National Living Wage will increase to £7.83 per hour. National Living Wage applied to all employees aged 25 and over.

Minimum Wage will also be increased to the following hourly rate:-

Workers aged 21-24

£7.38

Workers aged 18-20

£5.90

Workers aged 16-17

£4.20

Apprentice rate

£3.70

 Due to these increases, there will be an increase in the following weekly statutory rates:-

Maternity/Paternity/Adoption

£145.18

Sick Pay

£92.05

Lower Earnings Threshold

£116.00

 3. Taxation of Termination Payments

As of 6 April 2018, all payments in lieu of notice (PILONs) will be treated as earnings and will therefore be both taxable and subject to national insurance contributions regardless of the employment contract. This measure is intended to bring fairness and clarity to the taxation of termination payments by making it clear that all PILONs, rather than just contractual PILONs, are taxable earnings.

As of 2019, it is anticipated that employers will be liable to pay national insurance contributions on termination payments above £30,000.

4. Childcare Voucher Schemes

Childcare voucher salary-sacrifice schemes will close to new entrants from 6 April 2018, but will continue for existing users. A new tax-free childcare scheme was introduced on 21 April 2017 which involved parents applying directly rather than involving employers. More details can be found at:- https://www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know

5. General Data Protection Regulations

The General Data Protection Regulations will replace existing data protection laws.

As of May 2018 employers will be required to carry out audits of employee personal data that they collect and process to ensure that it meets the General Data Protection Regulations. The Information Commissioner’s Office have published a booklet which provides further guidance:- https://ico.org.uk/media/1624219/preparing-for-the-gdpr-12-steps.pdf

For more information on Employment Law please contact Alice Botting