Employment Law update 2018
We have summarised the recent changes in employment legislation below and detailed the dates that these will come into force.
New rates for the National Minimum Wage and National Living Wage will be introduced on the 1st April 2018 as follows:
- £7.83 per hour for 25 years old or over
- £7.38 per hour for 21 to 24 years old
- £5.90 per hour for 18 to 20 years old
- £4.20 per hour for workers under 18 who are no longer of compulsory school age
- £3.70 per hour for apprentices
Statutory Maternity Pay
Statutory Maternity Pay will rise from £140.98 to £145.18 from the 1st April 2018.
Statutory Paternity Pay and Statutory Shared Parental Pay
Statutory Paternity Pay and Statutory Shared Parental Pay will rise from £140.98 to £145.18, or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate, from the 1st April 2018.
Statutory Adoption Pay
Statutory Adoption Pay will increase from £140.98 to £145.18 from the 1st April 2018. From this date, the Statutory Adoption Pay is payable at 90% of the employee’s average weekly earnings for the first six weeks, with the remainder of the adoption pay period at the rate of £145.18, or 90% of average weekly earnings if this is less than £145.18.
Statutory Sick Pay
Statutory Sick Pay will increase from £89.35 to £92.05. This increase is expected to occur on the 6th April 2018. To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit.
Lower Earnings Limit
The Lower Earnings Limit will increase from £113.00 to £116.00 in April 2018.
Employer Contribution into Auto-Enrolment Pension
A planned increase in the minimum level of employer contribution into a pensions auto-enrolment scheme from 1% to 2% will be implemented from the 6th April 2018. A further planned increase to 3% will take effect in April 2019.
General Data Protection Regulations
The General Data Protection Regulations (GDPR) will be implemented from the 25th May 2018. The new rules will give individuals easier access to their own data, a ‘right to be forgotten’ and a right to know when their data has been hacked.
Changes to the Fit for Work Assessment Service
As a result of the Government reviewing the Fit for Work service, the decision has been made to stop taking referrals in England and Wales. The service will continue to provide the online service, which has been the most highly used aspect. To access this free, expert advice about work and health related matters, please visit the Fit for Work’s online resources.