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April Employment Update

Posted On: 03/04/2018

Employment tribunal claims lodged increased by 90% between October 2017 to December 2017 compared to the same quarter the year before according to the Ministry of Justice statistics published in March 2018.

Between April 2017 and December 2017 ACAS Early Conciliation succeeded in 17% of cases, 26% of cases ended up in tribunal and 58% did not.   

21% of those that went to tribunal reached a settlement, 5% were withdrawn by the claimant, 7% have been determined by a tribunal and 67% remain outstanding.

Statutory Pay Updates April 2018

National Minimum Wage & Living Wage Increases

From April 2018 the National Minimum Wage and Living Wage rates increase to:

Statutory Maternity Pay and Other Family Related Pay

From April 2018 statutory maternity pay, statutory paternity pay, statutory adoption pay and statutory shared parental pay increase to £145.18 per week

Statutory Sick Pay

From April 2018 statutory sick pay increases to £92.05 per week

Pension Auto-Enrolment

Between 6th April 2018 and 5th April 2019, the minimum contribution increases to 5%, with at least 2% being paid from the employer

Changes to Tax on Payment In Lieu Of Notice (PILON)

From 6th April 2018, all payments made in lieu of notice, whether contractual or not, will be subject to income tax and Class 1 National Insurance Contributions (NICs) as general earnings and will not benefit from the £30,000 threshold. The tax changes refers to post-employment notice pay (PENP) which represents the amount of basic pay the employee will not receive because their employment was terminated without full, or proper notice being given. PENP calculations do not apply to statutory redundancy payments.

Gender Pay Gap Reporting

The deadline for the first year of reporting is:

Increases in minimum contributions for automatic enrolment pensions

On 6 April 2018 contributions increase from the current minimum of a total contribution of 2% of qualifying earnings to 5%, of qualifying earnings. The employer minimum contribution rises from 1% to 2%. Staff members will have to make up whatever shortfall remains of the new total minimum contribution. This will be 3% if the employer contributes the required minimum amount - but less if the employer contributes more. 

Low Pay Commission consultation 2018

The Low Pay Commission has opened a consultation seeking evidence on the effects of recent increases in the national living wage and national minimum wage to inform thinking about future upratings.

It is also looking at a recommendation in the Taylor review, considering the potential impact of a premium for hours that are not guaranteed. They are also conducting a review of the NMW structure encompassing a review of youth rates.

 

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