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Key employment law changes for April 2017

Are you prepared for the key changes in employment law coming into force this April?

Minimum Wage and Statutory Pay

As of 1 April 2017, the National Living Wage for workers aged 25 and over will increase from £7.20 to £7.50 per hour.

In addition, the following National Minimum Wage increases will also take effect from 1 April 2017:

  • hourly rate for employees aged 21 to 24 will increase from £6.95 to £7.05;
  • hourly rate for 18 to 20 year olds will increase from £5.55 to £5.60;
  • hourly rate for 16 to 17 year olds will increase from £4.00 to £4.05;
  • the rate for apprentices will increase from £3.40 to £3.50 per hour; and
  • the accommodation offset will be increasing from £6.00 to £6.40 per day.

Furthermore, from 2 April 2017, the standard rates of statutory maternity, paternity, adoption and shared parental pay will rise from £139.58 to £140.98 per week; or 90% of the employees’ average weekly earnings if this figure is lower.

The standard rate of statutory sick pay will rise from £88.45 to £89.35 per week, as of 6 April 2017.

Gender Pay Gap Reporting

From 6 April 2017, UK employers with 250 or more staff will be required to publish the following information in line with The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017:

  • Gender Pay Gap (mean and median averages);
  • Gender Bonus Gap (mean and median averages);
  • Proportion of men and women receiving bonuses; and
  • Proportion of men and women in each quartile of the organisation’s pay structure.

Employers must comply with these reporting regulations for any year where they have a headcount of 250 or more employees. The results must verified by an appropriate figure, such as the Chief Executive of the company, and be published on the employer’s website.

It is worth noting that a wider definition of a worker will be used, to include some self-employed workers in addition. Agency workers are also included, but are to be counted by the agency providing them. Firms who provide temporary staff or are part of an umbrella company may unwittingly be caught out by this if procedure is not followed correctly.

If you are an employer and require further information or advice regarding these imminent changes to statutory pay and legislation, please do not hesitate to Call Us on 0800 042 0700, or email us on enquiries@lindermyers.co.uk

Find out more about our Employment department
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