Upcoming Employment Law Changes 2017 / 2018 Image

Upcoming Employment Law Changes 2017/2018

There are a number of important employment law changes coming up. These include the following:-

Gender Pay Gap Reporting

The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 came in to force from the 6th April 2017. Under these regulations, all organisations who employ 250 or more people are required to report on gender pay gaps. Accordingly, they are now obliged to provide details relating to the overall mean and median gender pay and bonus gaps, as well as the proportions of male and female employees who were awarded bonus pay,  and the proportions of male and female full-time employees who are in the lower, lower middle, upper middle and upper quartile pay bands. The snapshot date for private sector and voluntary organisations is the 5th April each year, beginning with the 5th April 2017. The snapshot date for public sector organisations is the 31st March each year, beginning with the 31st March 2017. Organisations must publish the data within a year of the snapshot date that applies to them on their own website, and on the Government’s online gender pay gap viewing service website. Hence, private sector and voluntary organisations must publish their 2017 data by no later than the 4th April 2018, whilst public sector organisations must publish their 2017 data by no later than the 30th March 2018.

General Data Protection Regulation (GDPR)/Data Protection Bill

The General Data Protection Regulation (GDPR) comes in to force on 25 May 2018. The Data Protection Bill has just had its second reading in the House of Lords. The Bill will repeal and replace the Data Protection Act 1998, with the Data Protection Act 2018.

Taxation of Termination Payments

Under the Finance Bill 2017, the following changes will apply from the 6th April 2018:-

  • As before, the first £30,000.00 of a non-contractual termination payment will be exempt from tax
  • 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
  • All payments in lieu of notice (PILON), whether contractual or not, will now be subject to deductions for tax and national insurance contributions

Other Employment Law Changes

In terms of other upcoming employment law changes, there is no clear timetable for the implementation of the Public Sector Exit Payment Cap or on the extension of  Shared Parental Leave (SPL), to include grandparents.

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