Employment Law Update

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Find out all the recent changes to employment law legislation

Date: Tuesday 12th April 2016

April is the time of year for changes to legislation and when all business wait with bated breath to see how these new changes will affect them.

So what are the changes to employment law and what are the implications for SMEs?  We’ve picked out the most relevant ones to your business.

Introduction of the National Living Wage (NLW)

There has been a lot of noise around the introduction of the National Living Wage (NLW).  As of 1st April 2016, workers aged 25 and over are now eligible to receive the national living wage rate of £7.20 per hour.  So employers need to have updated their records and systems to ensure that they have the correct details for their employees.  Take a look at our recent blog on the NLW.

Fines for non-payment of National Minimum Wage

You will now be fined double for not paying the national minimum wage as of 1st April 2016.  These fines will also apply to non-payment of the national living wage.

Non payment of tribunal awards

Tribunal enforcement officers can now fine organisations for not paying out tribunal awards.  Research from 2013 showed that less than half of tribunal claimants who had been awarded compensation received the full award from the employer.*

Limits on employment tribunal awards and statutory redundancy pay

As of 6th April 2016, the maximum amount of a week’s pay for these purposes increases to £479, and the maximum amount of a compensatory award for unfair dismissal increases to £78,962.

Statutory sick pay and family related pay rates frozen

There will be no increase to statutory adoption, maternity, paternity or shared parental pay rates in April 2016.  Likewise there will be no increase in statutory sick pay rates.

If you’d like help understanding what these changes mean for your SME then please get in touch for some expert advice from out HR consultants.  Email enquiries@bradfield.co.uk or phone 0207 977 9200.

Source: http://www.personneltoday.com/hr/employment-law-changes-april-2016/

*Source – https://www.gov.uk/government/publications/payment-of-employment-tribunal-awards

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