April 2018 Rate Changes Image

Employment Law: Summary Of April 2018 Rate Changes

There are a number of changes in employment law that take effect during April 2018 and throughout the rest of 2018. A summary of the April 2018 rate changes and other changes are as follows:

CHANGEWHAT, WHEN, & HOW
Increases In Statutory Redundancy Pay/Unfair Dismissal Basic AwardThe cap on average weekly pay increases to £508.00 on the 6th April 2018. Hence, statutory redundancy pay/the basic award in unfair dismissal cases will increase, and the maximum is now £15,240.00 (i.e. 20 x £508.00 x 1.5)
Gender Pay Gap Reporting30th March 2018 – deadline for gender pay gap reporting by public sector employers

4th April 2018 – deadline for gender pay gap reporting for private sector employers and voluntary organisations.
Changes To The National Minimum Wage And The National Living WageThe new rates for the national minimum wage and the national living wage take effect on the 1st April 2018 and are as follows:-

- workers aged 25 and over: £7.83 per hour
- workers aged 21-24 inclusive: £7.38 per hour
- workers aged 18-20 inclusive: £5.90 per hour
- workers aged 16-17 years of age inclusive: £4.20 an hour
- The apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship:
£3.70 an hour
Changes to the Taxation of Termination PaymentsChanges to the taxation of termination payments come into force on the 6th April 2018. Whilst the first £30,000.00 of a non-contractual termination payment will be exempt from tax as before, all payments in lieu of notice (PILON), whether contractual or not, will now be treated as earnings and subject to deductions for tax and national insurance contributions
General Data Protection Regulation (GDPR)The General Data Protection Regulation (GDPR) comes into force on the 25th May 2018. It will be implemented by way of the Data Protection Act 2018, which replaces the Data Protection Act 1998.
EU Trade Secrets DirectiveThe EU Trade Secrets Directive will be implemented on the 9th June 2018. It harmonises the law on the protection of trade secrets amongst EU Member States to protect against illegal acquisitions, use or disclosure.
Increases In statutory maternity, paternity, adoption and shared parental payThe rate increases are as follows:-

- Statutory maternity pay: those who qualify are entitled to receive it for 39 weeks at a rate of 90% of their gross weekly pay per week, subject to a maximum of £145.18 per week (up from £140.98 per week) after the first 6 weeks (from 1st April 2018)

- Statutory Paternity Pay: the smaller of £145.18 per week (up from £140.98 per week) or 90 per cent of their average weekly earnings per week (from 1st April 2018)

- Statutory Shared Parental Pay: the smaller of £145.18 per week (up from £140.98 per week) or 90 per cent of their average weekly earnings per week (from 1st April 2018)

- Statutory Adoption Pay: those who qualify are entitled to receive it for 39 weeks at a rate of 90% of their gross weekly pay per week, subject to a maximum of £145.18 per week (up from £140.98 per week) after the first 6 weeks (from 1st April 2018).

- Maternity Allowance: those who qualify are entitled to receive it for for 39 weeks at the rate of the smaller of £145.18 (up from £140.98) or 90 per cent of their average gross weekly earnings per week. The increase will apply from the 1st April 2018
Increase In Statutory Sick PayStatutory sick pay increases from £89.35 to £92.05 per week from the 6th April 2018
Corporate Governance ReformThe following changes are expected to take place in June 2018: disclosure of corporate governance arrangements, CEO/worker pay gap reporting, the creation of a new register of companies in which shareholders owning 20% or more of the company have protested over excessive executive pay, and the introduction of ’employee engagement mechanisms’ designed to give workers greater input at board level
Other ChangesThe following changes take effect from the 6th April 2018:-

- Failure to comply with a tribunal order to reinstate or re-engage the employee (26-52 weeks pay maximum capped at £508.00 per week): increases from £12,714.00 – £25,428.00 to £13,208.00 – £26,416.00

- Minimum basic award for dismissal on trade union, health & safety, occupational pension scheme trustee, employee representative, and working time grounds: increases from £5,970.00 to £6,203.00

- Right to be accompanied not properly adhered to (up to 2 weeks pay capped at £508.00 per week): maximum increases from £978.00 to £1,016.00

- Failure to provide written statement of particulars (between 2-4 weeks pay capped at £508.00 per week): increases from £978.00 – £1,956.00 to £1,016.00 – £2,032.00.

- Failure to comply with the flexible working regulations (up to 8 weeks pay capped at £508.00 per week): maximum increases from £3,912.00 to £4,064.00

Please also check out our 2018 key dates articles here and here from earlier in the year, which sets out changes that are taking place in employment law throughout 2018.

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