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April 2017 Employment Law Changes

In this edition of Hewett's Legal Bulletin, we look at several key changes that are coming into force this month, courtesy of Hallmark Hulme Solicitors.

National minimum wage increase 
On 1 April 2017, the rates of the national minimum wage will increase. The rate for workers aged 25 and over (the national living wage) increases from £7.20 to £7.50. The rates within the other age bands also increase.

Gender pay gap reporting
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 for private and voluntary-sector employers come into force in April 2017. They require all private and voluntary-sector employers with 250 or more employees to publish prescribed information about their gender pay gap results. Now is the time for organisations to begin carrying out calculations to determine their gender pay gap results so that the results are ready to be published on the organisation’s website by 4 April 2018. The creation of an action plan to address gender pay gaps is encouraged by the Government in pursuit of gender equality in the workplace.

Statutory family-related pay and sick pay rates increase
The weekly rate of statutory maternity, paternity, adoption and shared parental pay will increase to £140.98 for pay weeks commencing on or after 2 April 2017. The weekly rate of statutory sick pay will increase to £89.35 from 6 April 2017.

The Apprenticeship Levy 2017
The apprenticeship levy will come into effect in April 2017, at a rate of 0.5% of an employer’s pay bill. A £15,000 allowance for employers means that the levy will only be paid on employers’ pay bills over £3 million. Less than 2% of UK employers will pay the levy.

Statutory redundancy pay increases
New limits on statutory redundancy pay come into force on 6 April 2017. Employers who dismiss employees by reason of redundancy must pay those with two or more years’ service an amount based on the employee’s weekly pay, length of service and age. The weekly pay is subject to a maximum amount. From 6 April 2017, the maximum weekly amount is increasing from £479 to £489.

Reform to the intermediaries rules (IR35) in the public sector 
From 6 April 2017, public authorities will have responsibility for establishing if the intermediaries rules apply and, if they do, making the necessary tax and NIC deductions. 

If you have queries about the above, please contact Claire Cole, Head of Employment at Hallmark Hulme on 01905 726600 or claire.cole@hallmarkhulme.co.uk  



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