Welcome to the April, 2017 edition of HR Legislation Update. These updates keep you informed about recent and proposed changes to employment legislation and regulations impacting on employment rights and obligations as well as important case decisions in the UK and the EC that impact on employers.
In the latest HR legislation update edition, the following issues are covered:
- National Minimum Wage and Living Wage increase
- Statutory Adoption, Maternity and Paternity Pay rates increase
- Statutory Sick Pay rate increases
- Unfair dismissal compensation limit increase
- Redundancy pay – increase in weekly limit
- Gender pay gap reporting comes into force
National Living Wage & Minimum Wage Increases
From 1st April 2017, the National Living Wage for those aged 25 and over will increase from £7.20 per hour to £7.50 per hour. That means over £1,400 a year more for a full-time worker previously on the National Minimum Wage. The National Minimum Wage will also increase as follows:
- 21 to 24 year olds – from £6.95 per hour to £7.05
- 18 to 20 year olds – from £5.55 per hour to £5.60
- 16 to 17 year olds – from £4.00 per hour to £4.05
- Apprentices – from £3.40 per hour to £3.50
The maximum accommodation offset increases from £6.00 to £6.40 per day.
Statutory Adoption, Maternity & Paternity rates increase
On 2nd April 2017, the rate of statutory maternity pay (SMP), ordinary paternity pay (SPP) and adoption pay (SAP) increases from £139.58 to £140.98 per week.
Statutory Sick Pay Rate Increase
The weekly rate for statutory sick pay (SSP) increases from £88.45 to £89.35 on 6th April 2017.
Unfair dismissal compensation limit increase
The maximum compensatory award for unfair dismissal increases from £78,962 to £80,541 (or 52 weeks’ pay, if less) on 6th April 2017. Note that since the maximum award for unfair dismissal is the lower of the statutory cap or 52 weeks’ pay (actual gross pay for the employee, calculated at the time of dismissal).
Redundancy pay – increase in weekly limit
The limit on the amount of a week’s pay for the purposes of calculating statutory redundancy payments increased to £489 on 6th April 2017. The maximum statutory redundancy payment is £14,670.
Gender pay gap reporting rules come into force
Every year employers with 250 or more employees will have to report data about their gender pay gap, including bonus payments as well as report on the proportion of male and female employees in different pay quartiles and those who receive bonuses. Employers in the private sector must base their pay data on staff employed on a “snapshot” date of 5th April each year, starting from April 2017. Bonus information must be based on the preceding 12-month period. Employers have 12 months to publish the information on their own website and to upload it to a Government website.