New legislation from April 2016

New legislation from April 2016

From 1 April there a number of changes to employment legislation which I have detailed below.  If you would like any further information on any of the points below please email In2HR Expert Nicki Kempston

  • The New compulsory ‘living wage’ of £7.20 per hour will be introduced from 1 April 2016 and will apply for all adults aged 25 and older.  Under the same Regulation the financial penalty imposed on employers who fail to pay employees the national minimum wage will be increased to 200% of the amount by which a worker has been paid below the national minimum wage.
  • Statutory maternity, paternity, adoption and shared parental leave have all been frozen at the 2015/16 rate of £139.58 per week
  • Statutory sick pay has been frozen at the 2015/16 rate of £88.45 per week
  • From 6 April tribunal enforcement officers will be given the power to impose a financial penalty against employers who fail to pay employment tribunal award orders.  The penalty will have a minimum threshold of £100 and an upper threshold of £5,000.  Employers will qualify for a reduction of 50% of the penalty if the outstanding award is paid within 14 days.
  • From 6 April 2016 following the Chancellors announcement in the 2014 Autumn statement, NIC for young apprentices will be abolished with the aim of making it cheaper for companies to employ young people. Companies will not need to pay class 1 NIC on apprentices earnings up to the upper earnings limit for apprentices
  • From 6 April the statutory limit for calculating a week’s pay for redundancy will increase to £479 per week and the limit for guaranteed payments will be frozen at £26.

If you have any questions about the above email In2HR Expert Nicki Kempston
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