Key Employment Law Updates & Legislation Changes April & May 2018

There have been several key changes to employment law this April, including national minimum wage increases, changes to statutory payments and compensation limits, and new rules governing the tax and NICs treatment of termination payments.

National Minimum Wage

The National Minimum Wage (Amendment) Regulations 2018 came into force on 1 April 2018. The new rates are as follows: 

  • National Living Wage (age 25+)  £7.83 (previously £7.50)
  • Standard adult rate (age 21-24) £7.83 (previously £7.05)
  • Development rate (age 18-201) £5.90 (previously £5.60)
  • Young workers rate (age 16-17) £4.20 (previously £4.05)
  • Apprenticeship rate £3.70 (previously £3.50) 

Statutory Payments

The following statutory payments have increased as follows:

  • Maternity, adoption, paternity and shared parental pay £145.18 (previously £140.98)
  • Maternity allowance £145.18 (previously £140.98)
  • Statutory sick pay £92.05 (previously £89.35)
  • Statutory redundancy pay £15,240 (previously £14,670)

Mandatory gender pay gap reporting

In a bid to tackle the gender pay gap, and to promote pay transparency, large private and voluntary sector employers (those with 250 or more employees) are required to publish annual information on their gender pay gap under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. First reports were due on 4 April 2018 and the process will need to be repeated annually, with figures retained on-line for three years.

Tribunal compensation limits

The Employment Rights (Increase of Limits) Order 2018 came into force on 6 April 2018. The maximum compensatory award for unfair dismissal will rise from £80,541 to £83,682. The maximum amount of a week's pay, used to calculate statutory redundancy payments and various awards including the basic and additional awards for unfair dismissal, also rises from £489 to £508.

Termination payments

On 6 April 2018, all payments in lieu of notice, including payments where there is no contractual PILON clause, will be subject to income tax and class 1 NICs. Essentially, the part of the termination payment which is equivalent to the employees basic salary, will be subject to tax if (and to the extent that) notice is not worked.

General Data Protection Regulations (GDPR)

GDPR comes into force on 25 May 2018 and will change how businesses and public sector organisations can handle the information of their employees, clients and customers. Organisations will need to comply with new requirements, update their current data protection policies and procedures, complete extensive data protection audits and may need to appoint a designated data protection officer to oversee the business’ GDPR compliance. For more information please visit our GDPR resources hub page.

Data protection charges

The draft Data Protection (Charges and Information) Regulations 2018 (the Regulations) have now been published and will replace the current Data Protection (Notification and Notification Fees) Regulations 2000. The final version of the Regulations will come into force on 25 May 2018 in line with the GDPR. The draft Regulations set out the following:

  • When data controllers will be required to provide information to the Information Commissioner's Office (ICO) and pay a charge associated with the processing of personal data.

  • An annual charge to the ICO is required unless all processing undertaken by the controller is exempt. The ICO has also published a guide to the draft Regulations on how controllers can determine whether they are exempt from this requirement. The guide also outlines the ICO's intention to publish an online exemption assessment tool by 25 May 2018 to assist).

  • Special provisions must be made where there is more than one data controller in respect of personal data. For example, in the case of a governing body and head teacher of a school. 

  • Different fee levels, as follows: 
  • Tier 1 (£40) applies to micro organisations with a turnover of up to £632,000 or up to 10 members of staff;
  • Tier 2 (£60) applies to small and medium organisations with a turnover of up to £36,000,000 or up to 250 members of staff; and
  • Tier 3 (£2,900) applies to organisations who exceed the turnover and numbers of staff in Tier 2. 

Read the latest Employment Views & Insights
They seek to understand their clients and advise accordingly to achieve the outcomes that they require for their business needs.
Chambers and Partners
SA Law Work Life red mug and glasses
Stained glass window Employment SA Law
Views & Insights
Coronavirus Job Retention Scheme: Key changes between July – October 2020

Keely explores the key changes to the Covid-19 related furloughing that are set to impact employers and employees between July-October 2020.

Read More
Stained glass window Employment SA Law
Views & Insights
Coronavirus Job Retention Scheme (CJRS) Direction and Extended Deadline

The Coronavirus Job Retention Scheme will be extended to 30 June 2020, plus The Treasury has also issued a Direction to HMRC which provides legally binding…

Read More
Stained glass window Employment SA Law
Views & Insights
COVID-19 Right to Work Checks Adjustment

Adjustments made to Right to Work Checks process for employers during COVID-19.

Read More
Phone Box with Man in a Bowler Hat
As there is so much expertise on offer from SA Law they can provide a legal expert on all areas so that it can be handled under one roof.
Legal 500
Stained glass window Employment SA Law
Views & Insights
Updated Furlough Guidance provides clarification for employers

Over the weekend the government updated its guidance for employers on the Coronavirus Job Retention Scheme (CJRS) - Keely Rushmore reports.

Read More
Stained glass window Employment SA Law
Views & Insights
FAQs Furloughing Employees / Job Retention Scheme

Frequently asked questions on Furloughing Employees to help employers, line managers and employees – answered by SA Law’s employment team.

Read More
SA Law Red arrow neon light image
Views & Insights
Data protection and school photographs

ICO shares guidance following two schools being reprimanded for distributing photographs of pupils without parents’ consent.

Read More
Views & Insights
Measures to help self-employed in light of Covid-19

Christine Caffrey explains the UK government’s measures to assist the five million self employed people in the UK through business disruption due to corona…

Read More
They are knowledgeable, with a commercial mindset, but also down to earth and friendly so it is easy to be very honest with them.
Chambers and Partners

© SA LAW 2020

Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them alone. You are recommended to obtain specific advice in respect of individual cases.