There are a number of important upcoming employment law changes taking place in 2018/2019.
Upcoming Employment Law Changes 2018
Upcoming employment law changes taking place in 2018, include the following:-
- 1st January 2018 – Schedule 7 of the Immigration Act 2016: Quarterly immigration checks begin by banks and other financial institutions on account holders, by checking whether the account holder is on the Credit Industry Fraud Avoidance System (CIFAS) database. If the account holder is found to be an illegal immigrant, then their account/assets will be frozen. The Home Office anticipates that around 6000 failed asylum seekers and visa overstayers will be identified through these checks, from the 70 million accounts checked each quarter.
- 30th March 2018 – deadline for gender pay gap reporting by public sector employers
- 1st April 2018 – increases in the National Minimum Wage and National Living Wage
- 1st April 2018 – increases in Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay, Adoption Pay, and Maternity Allowance
- 4th April 2018 – deadline for gender pay gap reporting for private sector employers and voluntary organisations.
- 6th April 2018 – increase in Statutory Sick Pay
- 6th April 2018 – taxation of termination payments: 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
- 25th May 2018 – the General Data Protection Regulation (GDPR)/Data Protection Act 2018 comes into force
- 9th June 2018 – EU Trade Secrets Directive implemented. Harmonises the law on the protection of trade secrets amongst EU Member States to protect against illegal acquisitions, use or disclosure.
- June 2018 – corporate governance reform: 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
Just 7% of those organisations that are required to publish gender pay gap details have done so thus far. Hence, there is a lot of work to be done by a lot of organisations before the deadline dates of the 30th March 2018 and the 4th April 2018 respectively.
A recent survey found that less than 50% of businesses in the UK are aware of the new Data Protection Act 2018 (which implements the GDPR in the UK) that is coming into force on the 25th May 2018. A considerable number of organisations are therefore completely unprepared.
Upcoming Employment Law Changes 2019
Upcoming employment law changes taking place in 2019, include the following:-
- 29th March 2019 – Brexit Day. The UK leaves the European Union (EU)
- 6th April 2019 – taxation of termination payments: employer class 1A national insurance contributions, as well as tax, will now be payable on that element of a termination payment which exceeds £30,000.00. This change was originally due to take effect on the 6th April 2018, but the implementation of the NIC Bill has been delayed by a year.
- 6th April 2019 – the abolition of Class 2 NIC for the self-employed
- By 2020 – Parental Bereavement (Pay and Leave) Bill to come into force. The bill began the committee stage on the 31st January 2018, and once enacted, will provide parents with 2 weeks paid leave if they lose a child under the age of 18.
Other Possible Future Changes
Potential future changes include:-
- The extension of IR35 to the private sector, a possible change that has been described as potentially “catastrophic for the economy“
- The extension of the right of shared parental leave to grandparents. This change is expected in 2018, but has yet to be confirmed