As Partner and Head of the Employment department Simon undertakes all types of employment work.…View Profile View all
2019 will see new and changing legislation that will affect employers. The main changes are as follows:
Executive Pay Gap Reporting (1 January 2019)
Regulations made under the Companies Act 2006 require UK listed companies with more than 250 UK employees to report annually on the pay gap between their Chief Executive and their average UK worker.
The first reports are due in 2020.
Gender Pay Gap Reports - Public Sector (30 March 2019)
‘Specified public authorities’ (including government departments, the armed forces, local authorities, the NHS and state schools) with 250 or more employees, are required to publish their gender pay gap reports by this date.
Increase to National Minimum Wage and National Living Wage (1 April 2019)
New National Minimum/Living Wage was announced in the Budget 2018:
• Workers aged 25 and over - £8.21 an hour (National Living Wage)
• Workers aged 21-24 - £7.70 an hour
• Development rate for workers aged 18-20 - £6.15 an hour
• Young workers rate for workers aged 16-17 - £4.35 an hour
• Apprentice rate (workers under 19 or in first year of apprenticeship) - £3.90 an hour
Gender Pay Gap Reports - Private & Voluntary Sector (4 April 2019)
Employers of 250 or more employees are required to publish their second annual gender pay gap report by this date.
Increase to Employers’ Aggravated Breach Penalty (6 April 2019)
Employment Rights (Miscellaneous Amendments) Regulations 2019 – increases the ‘aggravated breach’ penalty to £20,000 for employers that repeatedly breach their employment law obligations.
Payslip Changes (6 April 2019)
Changes to the Employment Rights Act 1996:
• Payslips must include the total number of hours worked where the pay varies according the hours worked (for example under variable hours or zero hours contracts)
• Employers are obliged to provide pay slips to workers as well as employees.
Tax on Termination Payments (6 April 2019)
Employers will be liable to pay Class 1A National Insurance contributions on termination payments above £30,000 that are subject to income tax by the employee.
Brexit (29 March 2019)
And, as you may have heard, the UK is leaving the EU on 29 March 2019 (or, at least, that was the intention at the time of this ebrief) so watch this space to see what changes Brexit will have on employment law.
If you have any queries or would like some advice, our employment team would love to talk to you. Please call them on 0113 849 4000.