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UK Employment law changes 2018

27th March 2018

At a glance, here are the new rates and key legislative changes for the next few months, I hope that this is a useful reminder.

30 March 2018
Gender pay gap reporting for public sector employees
Public sector employers must publish first reports before this date (with a snapshot date of 31 March 2017).

1 April 2018
National Living Wage
National Living Wage for workers aged 25 and over will increase to £7.83 per hour. The national minimum wage (NMW) rates will increase:

o from £7.05 to £7.38 for 21 to 24 year olds
o from £5.60 to £5.90 for 18 to 20 year olds
o from £4.05 to £4.20 for 16 and 17 year olds
o from £3.50 to £3.70 for apprentices.

1 April 2018
New statutory rates
SMP, SPP, ShPP and SAP to increase to £145.18 per week.

4 April 2018
Gender pay gap reporting for private sector employers
Private sector employers must publish first reports before this date (with a snapshot date of 5 April 2017).

6 April 2018
Statutory sick pay
SSP to increase to £92.05 per week.

6 April 2018
Taxation of termination payments
Changes to the way in which termination payments are taxed come into force from 6 April 2018.
New rules will apply to any termination of employment that takes place on or after 6 April 2018 whereby all notice pay is to be treated as earnings and subject to tax and national insurance contributions – irrespective of whether or not there is a pay in lieu of notice clause (PILON) in the employment contract.

For these purposes, the amount of notice pay may need to be calculated pursuant to a specific formula set out in statute, so it may not be as straightforward as operating a contractual PILON. For a termination of employment that takes place before 6 April 2018 the old rules will apply (even if the termination payment is paid after this date).

6 April 2018
A week’s pay for Redundancy
The maximum amount for a week’s pay (used to calculate statutory redundancy payments) will increase to £508 per week (from £489 per week). This increase is of particular relevance to those making redundancies on or after 6 April 2018.

6 April 2018
Maximum compensatory award
The maximum compensatory award for unfair dismissal increases to £83,682 (from £80,541) where the effective date of termination is on or after 6 April 2018.

25 May 2018
General Data Protection Regulation
To replace existing data protection laws.

If you require advice in this area or any matter, please get in touch with our expert team on +44 (0)78 9183 9136.