Employment Law Changes in April 2018
Employers and HR advisers may be familiar with April bringing employment law updates and an annual increase to certain payments and compensation caps. April 2018 brings several of the usual changes together with the introduction of Gender Pay Gap Reporting and the Apprenticeship Levy.
The following is a summary of some of the key changes and the effective dates:
1. National minimum wage and national living wage increases
From 1st April 2018 national minimum wages will increase as follows:
Workers aged 25 and over £7.83 per hour
Workers aged 21 to 24 £7.38 per hour
Workers aged 18 to 20 £5.90 per hour
Workers aged 16 or 17 £4.20 per hour
Apprentices under 19 or 19+ but in first year of apprenticeship £3.70 per hour
Accommodation offset limit will also increase to £7.00 a day
For more information on the National Minimum Wage please see our separate article on the subject.
2. Increased statutory maternity and paternity pay
From 2nd April 2018 statutory maternity pay, statutory paternity pay, statutory adoption pay and shared parental pay will increase to £145.18 a week (or 90% of average earnings if that is lower).
3. Increased statutory sick pay
From 6th April 2018 statutory sick pay will increase to £92.05 a week.
4. Tax changes
From 6th April 2018 the personal income tax allowance will increase to £11,850, and the higher rate tax threshold will increase to £45,000. The lower earnings limit for Class 1 National Insurance contributions will increase slightly to £113 a week and the primary and secondary thresholds will be aligned at £157.
5. Increase to employment tribunal award limits
From 6th April 2018 there will be several increases to employment tribunal awards and the figures to be used for calculating redundancy payments:
Awards Payment changes from 6 April 2018
Maximum compensation award for unfair dismissal £83,682 or one year’s gross salary if lower
Maximum basic award for unfair dismissal and statutory redundancy (30 weeks’ pay) £15,240
Limit on one week’s pay for calculating redundancy and unfair dismissal basic award £508
Minimum basic award for unfair dismissal relating to health and safety, being a trade union member, occupational pension scheme trustee or employee representative, or working time regulations £6,203
Minimum compensation award for employees excluded from a trade union £9,474
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