click to view mobile Navigation
You are here > Hewett's Legal Corner #44 April 2016 Changes to Employment Law

Hewett's Legal Corner #44 April 2016 Changes to Employment Law

Hewett’s Legal Corner – April 2016 #44

April 2016 Changes to Employment Law

There are several key changes to employment law coming into force in April 2016 and these are summarised below.

1st April 2016
National Living Wage
  • The new National Living Wage will apply to workers aged 25 and over at a rate of £7.20 an hour.

6th April 2016
Financial penalties for unpaid Employment Tribunal awards on settlements
  • A new scheme is being introduced which will penalise employers who fail to pay Employment Tribunal awards or settlement sums. If an employer fails to comply with a warning notice, an enforcement officer may issue a penalty notice requiring the employer to pay a financial penalty to the Secretary of State. The penalty will be 50% of the unpaid relevant sum subject to a maximum of £5000. The government’s aim is to use the financial penalty regime to deter non-payment of Tribunal awards and create a level playing field for compliant businesses.

Employment Tribunal Postponement Provisions

  • New rules will apply to claims issued on or after 6th April 2016. Each party in a case will only have the opportunity to apply for two postponements and there will be a new deadline for postponements of seven days before the hearing. Employment Tribunals will be required to consider making a costs order or a preparation time order against a party who makes a late application to postpone or adjourn the hearing.
  • The government intends these provisions to reduce delays in Tribunal proceedings caused by frequent and short-notice postponements and adjournments.

Abolition of contracting-out on salary related basis

  • Currently, the state pension consists of two elements: the basic pension and the state second pension (S2P). Since 6th April 1978, occupational pension schemes have been allowed to contract-out of S2P by providing alternative benefits outside the state pension that meet specified requirements. The intention was to ensure that individuals received broadly the same benefits as the state benefits that they had given up.
  • From 6th April 2016, S2P will no longer exist and will be replaced by a flat rate payment which will apply to retirements from that date.  The full rate of the new state pension payable from 6th April 2016 will be £155.65 per week.
  • The main issue facing employers associated with the end of contracting-out is the cost increase as the government National Insurance Contributions rebate for contracting-out will be removed and employers and employees will have to contribute in full.

Employment Tribunal Compensation Limits

  • The maximum compensatory award for unfair dismissal will rise from £78,335 to £78,962.
  • 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, rises from £475 to £479.

If you would like to discuss any of the issues covered in this article, or have any employment law query, please contact Claire Cole Head of Employment at Hallmark Hulme at or on (01905) 726600.

< Go Back


Hewett's Support Worcester Full & Half Marathon 2018
We are pleased to announce that Hewett Recruitment will be supporting St Richards Hospice and sponsoring the Worcester Full and Half Marathon 2018 as it enters its seventh year.
04/01/2018 10:38:41

HR Professionals Conference 2017 - Huge Success
With over 100 delegates, this years' HR Conference hosted by Hewett Recruitment and the HW Chamber of Commerce is now the largest HR Conference in Worcestershire.
27/11/2017 16:55:25

Hewett’s once again pledge their support to local Foodbanks
Hewett Recruitment have once again pledged their full support this Christmas with a Foodbank collection initiative aimed at helping the local communities of Worcestershire who have fallen on hard times.
18/10/2017 10:55:56

Hope & Glory Dinner - 29th November 2017
Spectacular Black-Tie 'Proms' Celebration in Bewdley... Flag waving and singing to a 20-piece orchestra - three course dinner
22/09/2017 12:20:40

Hewett’s ‘values’ recognised at staff awards
Hewett’s Annual Family Fun Day and Company Awards took place at the West Midlands Safari Park in July.
31/07/2017 15:50:48


Christmas Legal E-Bulletin - Preparing Your Business for 2018
In the last Employment Law E-Bulletin of 2017, learn how to prepare your business for the new year ahead and the recent employment law developments that should be considered.
18/12/2017 12:50:33

Louises Column - The Warriors Community Foundation
Many of us in business engage and support local causes, to help raise awareness and generate much needed funds for charities and local groups to continue their good work. I'd like to highlight and encourage you to get involved with the great work going on at an exceptional and award winning foundation, The Warriors Community Foundation.
07/12/2017 13:57:01

Legal E-Bulletin - Reimbursement Scheme for Employment Tribunal Fees Announced
Sally Morris, Partner and Head of Employment for mfg Solicitors shares recent declaration about unlawful Employment Tribunal fees and the reimbursement that eligible applicants may be entitled to.
04/12/2017 13:22:02

Louises Column - The Importance of Flexible Working
What to do as a job is the most important life decision that most people will ever have to make. This outranks other life-defining decisions such as where to live, starting a family, or getting married according to a recent survey.
15/11/2017 11:13:09

HR Professionals Conference - Understanding more about the brave new world of jobs!
If you are a business owner, director or HR professional who needs to understand more about what the brave new world of jobs means for skills and business hiring strategies in the future don’t miss the annual HR Professionals Conference.
18/10/2017 11:08:35