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Employment law changes – April 2019

April usually brings with it a deluge of changes to employment law. This year is no different, with numerous important changes set to take effect early in the month.

We set out below a summary of the key changes and notable dates for you to be aware of.

Please do not hesitate to get in touch if you would like to discuss any of these changes and the effects they may have on your business further.

1 April - Minimum Wage

The National Living Wage will increase from £7.83 to £8.21.

The National Minimum Wage will also increase as follows:

  • Workers aged 21 to 24 – from £7.38 to £7.70

  • Workers aged 18 to 20 – from £5.90 to £6.15

  • Workers aged over compulsory school age under 18 – from £4.20 to £4.35

  • Apprentices – from £3.70 to £3.90

4 April - Gender pay gap reporting

This is the date by which all applicable businesses must publish their second annual pay gap data (with a snapshot date of 05/04/18).

6 April -

Redundancy payments and tribunal awards

The limit on the compensatory award for “ordinary” unfair dismissals will increase from £83,682 to £86,444.

The maximum amount of a ‘week’s pay’ for the purposes of calculating statutory redundancy payments and the basic award in unfair dismissal claims will increase from £508 to £525 (gross).

These new limits will apply to dismissals that take effect on or after 6 April 2019.

The maximum penalty for an aggravated breach of a worker’s rights will also increase from £5,000 to £20,000.

Pensions auto-enrolment

The minimum contribution rates will increase to 3% for employers and 5% for employees (meaning a total minimum contribution rate of 8%).

Personal tax

The personal allowance will increase to £12,500 and the higher rate tax threshold to £50,000.

Family-related and sick leave rates

Increases to the statutory rates for maternity, paternity, shared parental pay, adoption and sick pay.

Statutory rates for everything other than sick pay will increase from £145.18 to £148.68, or 90% of average earnings if lower.

Statutory sick pay will also increase from £92.05 to £94.25 per week.

Itemised pay statements

From this date, workers (and not just employees) must receive payslips.

Payslips will also need to state the total number of hours worked where pay varies according to the hours worked.