NOW that new employment law has come into effect it is important to ensure you have implemented everything you need to ensure your business meets all its obligations.
Changes usually get made to employment law every April and this year is no exception. Employment specialist Rebecca List of leading regional law firm Tollers looks at the key points.
1. Gender Pay Gap Report rules come into force
Larger employers, which are those with 250 or more employees, will have to report data about their gender pay gap, including reporting on bonus payments. These employers will also have to report on the proportion of male and female employees in different pay quartiles and those who receive a bonus. Employers have one year to publish the information on their own website and to upload it to Government websites.
2. Introduction of apprenticeship levy
The monthly levy to fund training during apprenticeships, which came into force on 6 April, will be paid via PAYE. Employers in England that pay the levy will be able to access funding through a digital service which is expected to operate from 1 May. Employers who do not pay the levy will also be able to access funding for apprenticeships.
3. Immigration Skills Charge
Employers that sponsor skilled workers under Tier 2 of the immigration points-based system now must pay a levy of £1,000 per certificate of sponsorship per year.
The levy will apply to each worker under Tier 2, but there are some exemptions. There are other changes including:
* There is now a requirement for those workers coming into the UK under Tier 2 for certain posts to obtain criminal record certificates from the country they have lived in for the last ten years; and
* The salary threshold will increase to £30,000 from 6 April 2017 for migrants who are experienced workers.
4. Tax advantages under Salary Sacrifice Arrangements to be limited
There are now limits to the benefits attracting tax and National Insurance contribution advantages when they are provided under a salary sacrifice scheme. This change is expected to take effect from 6 April with a few exemptions.
5. National Minimum Wage Increases
On 1 April, the rate for the National Minimum Wage increased. This now sees the rate for workers aged 25 and over, called the National Living Wage, increase from £7.20 to £7.50.
6. Pension allowance
Members of defined contribution and high hybrid pension schemes who are now able to take a tax-free amount of £500 from their scheme are advised take financial advice.
7. Rise in statutory family-related pay and sick pay rates
The weekly rate of statutory maternity, paternity, adoption and shared parental leave to increase to £140.98 and Statutory Sick Pay to increase to £89.35.
8. Statutory redundancy pay increase
The weekly pay that is awarded under the statutory redundancy scheme has increased.
Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age.
What Next?
Here at Tollers, we will continue to watch developments closely and keep you informed. We will also be engaging with our clients to understand your business and personal needs going forward so that we are able to assist you in the future.
If you have any questions regarding the new changes and how to implement them then talk to Tollers on 01604 258558 or visit the website www.tollers.co.uk
