Changes to Employment Law

Large businesses should already be aware that more changes to employment law are ahead. You’ve probably got an HR manager, or even a team, to keep up with new legislation.

It’s not so simple for business owner-managers. You have to be informed about so many different areas, from reducing your carbon footprint, to planning rules.

Micro-businesses, operated by owner managers are the backbone of the country. So we thought that the following information, provided by Elcons Employment Law Consultants, would be useful:

Changes to Employment Law – applicable to all businesses

From 1st April 2019

New National Minimum/Living Wage rates are:

  • Apprentices (under 19 or in first year of apprenticeship) £3.90 p/hr
  • Age 16 – 17               £4.35 p/hr
  • Age 18-20               £6.15 p/hr
  • Age 21 – 24               £7.70 p/hr
  • National Living Wage (25+)               £8.21 p/hr

From 6th April 2019 – Payslip changes

From the 6th April 2019 employers must:

  • include on payslips the total number of hours worked (where the pay varies according the hours worked); and
  • Payslips must be given to ‘workers’ and not just employees.

From 6th April 2019 – Implementation of Parts 1 and 2 of The Employment Rights (Miscellaneous Amendments) Regulations 2019

Tribunals will be able to apply up to £20,000 penalty to employers for aggravated breaches of Employment Rights which will be payable to the Secretary of State.  This will be increasing from the current maximum penalty amount of £5,000.

From 2020 Parental bereavement provision

Due to come in to force in 2020, the Parental Bereavement (Leave and Pay) Bill will entitle employees of over 26 weeks service up to two weeks’ leave, paid at the statutory rate if they lose a child under the age of 18.  Currently there is no paid leave and no right other than a day-one right to take a reasonable amount of unpaid time off to deal with an emergency involving a dependant.

Changes to Employment Law – applicable to companies with more than 250 employees:

From 4th April 2019: Gender Pay Gap Reporting

Private and voluntary sector employers with over 250 employees are required to publish “snapshot” data regarding pay and bonus differences between male and female employees.  The first set of reports were published in April 2018, the next set of reports are due by 4th April 2019.

The Northern Irish Employment Act 2016 mirrors the above requirements of England, Scotland and Wales however they will also include fines of up to £5,000 for non-compliance.  The Northern Irish Act also requires companies of over 250 staff to report on disability and ethnicity pay gaps.

From 2019 for 2020 – Executive pay gap reporting

Coming in to force in 2019 the new legislation will require companies with more than 250 employees to publish their executive pay gap.  The first reports will be due in 2020 however, organisations are urged to look at figures and to start preparing.  This figure will highlight the gap between the total amount paid to their CEO and the average pay for an employee.

Find out More

If you would like further advice about how these changes will affect your business, please get in touch with us at Jones Harris. We’re always happy to have a no-obligation chat, and have a huge network of contacts in all areas of business.

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