Employment Law Changes in 2016 Employers Should Know About

Whilst not as dramatic as the last couple of years, there are some changes in the coming year employers should be aware of.  Below are the main ones:

National Living Wage Introduced

On 1 April 2016 the national living wage will be introduced, and for the first time, employers will need to pay staff aged 25 and over the national living wage which will initially be set to £7.20.

Another change concerning minimum pay is the doubling of the penalty for failure to pay staff the national minimum.

Gender Pay

By 26 March 2016, regulations will be introduced making it compulsory that large employers, with 250 or more employees, will be obliged to publish information about the difference in pay between men and women including information of the gap in bonus payments.  Further details will be provided about what the information should include and where it should be published.

Reforms to Strike Laws

Workers who are trade union representatives. There are proposed reforms to the power to strike. The vote must have the backing of at least 40% of eligible trade union members, as opposed to just 50% of those who vote.

Employers can cover striking workers by using agency staff.

Statutory, maternity, paternity, adoption and shared parental pay rates frozen

The annual increase in the weekly rate of statutory maternity pay, statutory paternity pay, statutory adoption pay and statutory shared parental pay are frozen at £138.58 per week. The statutory sick pay will also remain the same at £88.45.

Increase in the Income Tax Threshold

There are changes to the income tax personal allowance which will increase to £11,000. The higher rate tax threshold increases to £43,000. These take effect on 6 April 2016.

Employer NICs abolished for apprentices under the age of 25

From April 2016, employer national insurance contributions for young apprentices are abolished. Employers will not have to pay Class 1 national insurance contributions on earnings up to the upper earnings limit for apprentices aged under 25.

Public Sector Exit Payments

Exit payments for public-sector employees are capped at £95,000, however, as yet there is no planned implementation date for this change.

From 1 April 2016, public sector employees with annual earnings of £100,000 or more will be expected to repay exit payments if they return to work in the same sector with one year.

For any issues you have or to find out more please contact Paul Stevens pstevens@judge-priestley.co.uk or 0208 290 7422