There are a number of important upcoming employment law changes in 2019/2020.
Upcoming Employment Law Changes In 2019
Upcoming employment law changes in 2019, include the following:-
- 1st January 2019 – Executive pay gap reporting comes into force, which requires UK listed companies with more than 250 employees to report the pay gap between their CEO and their “average” UK worker. The first annual reports will begin in 2020.
- 29th March 2019- Brexit Day. The UK leaves the European Union (EU)
- 30th March 2019 – deadline for gender pay gap reporting by public sector employers
- 1st April 2019 – increases in the National Minimum Wage and National Living Wage
- 1st April 2019 – increases in Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay, Adoption Pay, and Maternity Allowance
- 4th April 2019 – deadline for gender pay gap reporting for private sector employers and voluntary organisations.
- 6th April 2019 – increase in Statutory Sick Pay
- 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. The proposal to abolish Class 2 NIC for the self-employed from this date was withdrawn on the 7th September 2018
- 6th April 2019 – employers will be required to provide additional information in itemised pay slips. Under The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018, as well as providing the information that previously needed to be included in an itemised pay slip, an employer will now also need to include the total number of paid hours worked, but only in those situations where pay varies in direct relation to the amount of time worked (e.g. in variable hours and zero hours contracts).
- 6th April 2019 – the minimum contributions into auto-enrolment pension schemes will rise to 3% for employers and 5% for employees, to produce a total minimum contribution of 8%
- Expected in 2019: A Government review of ‘non-disclosure agreements,’ various court decisions in the supermarket equal pay claims, and the Supreme Court decision in the case of Royal Mencap Society v Tomlinson-Blake (i.e. whether the national minimum wage should be paid for time spent asleep during a sleep-in shift).
Upcoming Employment Law Changes In 2020
Upcoming employment law changes in 2020, include the following:-
- 2020 – Annual executive pay gap reports are to be published for the first time
- April 2020 – Statutory Parental Bereavement Pay starts. The Parental Bereavement (Pay and Leave) Act 2018 provides employed parents with 2 weeks paid leave if they lose a child under the age of 18.
- By April 2020 – The extension of IR35 to medium and large sized businesses in the private sector, a change that has been described as potentially “catastrophic for the economy“
- 31st December 2020 – the transitional period relating to Brexit will finish
Other Possible Future Changes
Potential future changes, in addition to the upcoming employment law changes in 2019 and 2020, include:-
- The extension of the right of shared parental leave to grandparents. This change was originally expected to come in to force in 2018, but has yet to be confirmed. With no progress having been made on this proposal since it was first announced in October 2015, it is not known when or if the measure will now be introduced.