Top 4 Latest Key Employment Law Development Updates in UK

TribunalClaim By TribunalClaim, 15th Apr 2018 | Follow this author | RSS Feed
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Find out the latest 4 key-changes in employment law which will prove to be of interest to employment practitioners in UK.


April is one of the busiest months for most businesses. Not only does it signify the beginning of a new financial year, it also means that the time has come for organizations to start work on their accounting and reporting requirements. Furthermore, in 2018, the month of April is all set to bring about another set of developments in the employment law that will directly affect the lives of common people here on. Here is a glimpse of the four important developments that are set to arrive in April this year. Take a look below-

Deadline for Gender Pay Gap Reports

Whilst debates on the pay gap between males and females have been going around for months, the first real deadline for private companies to publish their gender pay gap reports is the 4th of April 2018. In case the deadline passes for this annual requirement, private businesses only have until the 5th of April, which is the next “snapshot date” to collect pay data. Furthermore, all the private and voluntary sector employers (having at least 250 employees) in England, Scotland, and Wales, will have to publish information about the gender pay differences in their workforce. This information will be based on the pay bill ‘snapshot’ date of 5 April 2017, effective under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Earlier, specified public-sector employers (having 250 or more employees) had to publish the first draft of gender pay gap reports latest by 30 March 2018 that will cover pay data for the period 2016-2017. Furthermore, these reports will include the differences in mean pay, mean bonus pay median pay, and median bonus pay between the employees of both genders. Additionally, they will also set out the proportion of male and female employees who received bonus pay and the proportion of male and female employees in the pay quadrilles of the organisation, on both government and their own websites. Currently, more than 350 employers have published their reports of gender pay gap reports on the government site.

Changes to Taxation of Termination Payments

What is considered to be a move to simplify the taxation of termination payments, the tax distinction that was drawn between contractual and non-contractual pay instead of notice (PILON) payments, would be removed from the 6th of April 2018. Subsequently, all PILON payments will be taxable and subject to Class 1 NICs. Employers who are already paying termination payments will now have to split and calculate the payment in to “Post-employment Notice Pay” (PENP) and the remaining balance. Whilst the remaining balance is tax-free for up to a maximum of £30,000, the PENP will be taxable. For any further clarifications on the taxation changes, you can consult a reputable employment solicitor.

Minimum Wage Increases

Recently, nearly 180 employers were named for underpaying their staff. Therefore, the government is all set to increase the minimum pay rates, which will take effect from 1st of April 2018. Under this, the National Living Wage or the minimum rate for workers aged 25 and over, will see an increase by 4.4 percent, up to £7.83 per hour. Similarly, all other National Minimum Wages will increase from the same date, up to £5.90 per hour for workers aged 18 to 20, to £7.38 per hour for workers aged 21 to 24, and up to £4.20 for under-18 workers. Whilst, the apprentice minimum wage rate will increase from £3.70 per hour, the accommodation offset will raise up to £7.00 per day.

Auto-enrolment Contributions on the Rise

Not only wages, but employers will also be responsible for increasing the minimum auto-enrolment contributions that they contribute towards workers’ pensions. From the 6th of April, employers will have to pay two percent (up from one percent) and will also have to contribute at least three percent (up from one percent). As a result, the Statutory maternity (SMP), adoption (SAP), paternity (SPP), and shared parental pay (ShPP) will increase from £140.98 to £145.18 a week from the 9th of April 2018. Furthermore, Statutory Sick Pay (SSP) is also due increasing from £89.35 to £92.05 this month, whilst the lower earnings limit will increase from £113 to £116.These minimum contributions will again increase from April 2019. To know more, you can seek employment law advice from your nearby employment solicitor.

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