BY the time you read this the turkey will have been eaten, Christmas trees returned to storage or recycled, Christmas jumpers packed away and New Year’s resolutions very likely broken. However, with confidence amongst businesses reportedly riding sky high, employers have plenty to look forward to in 2017!
Undoubtedly, the big news of the year will be the unveiling of whether “Brexit means Brexit’ and employers could be forgiven for thinking there is little else on the horizon in the people management department for the year ahead. Not so – there is plenty to keep employment law and HR practitioners busy.
2017 heralds a number of changes. One such change is the introduction of a tax-free childcare scheme to replace the current system whereby employers can provide employees with childcare vouchers. The new system will allow working families to claim 20 per cent of qualifying childcare costs for children under five (and for disabled children under 17) up to a maximum of £2,000 per child per year. To be able to benefit from the scheme, the general rule is that both parents in the household must earn at least £50 per week. However, if one parent is an additional rate taxpayer, the family will not be eligible.
The gender pay gap reporting regulations are scheduled to come into force in April 2017 with the aim of closing the pay gap between male and female employees. The regulations apply to large private and voluntary sector employers with more than 250 employees, and will require employers to annually publish figures showing the average hourly pay of male and female employees, pay gaps at different levels of seniority within the business and information about bonus payments over a 12 month period.
The gender pay gap report must be published on the employer’s own website and a Government sponsored website. The first reports do not have to be published until April 2018. However, employers should begin their preparations now by initially identifying if they are likely to be caught by the regime, and if so by conducting a provisional audit to establish any areas of concern. The Government will produce guidance to assist employers with compliance in due course.
In addition, the Government plans to introduce an apprenticeship levy in April 2017, which will change the way apprenticeships in England are funded. This will require all employers with an annual wage bill of more than £3 million to invest in apprenticeships by paying 0.5 per cent of their annual wage bill (minus an annual levy allowance of £15,000) towards the cost of apprenticeship training. The employer will then be able to access funding for apprenticeships through a new digital apprenticeship service account. The Government is also considering introducing an Institute for Apprenticeships tasked to ensure apprenticeships are of high quality.
Additionally, the National Living Wage rate will be reviewed in April 2017. It is anticipated this will increase from the current rate of £7.20 per hour to £7.50 per hour in line with the recommendations of the Low Pay Commission.
Overall, we predict that 2017 will be a busy year in employment law and HR matters. Employers should ensure they are fully briefed and are fully prepared to save being caught by surprise!
If you would like more information about planned changes for 2017 or would like to discuss a specific concern in relation to your business, contact 01604 871143 or email
This update is for general guidance only and does not constitute definitive legal advice.
