April generally brings financial and tax changes but, importantly, it’s also a major month for employment law changes taking effect. Here’s an overview of what your clients need to be aware of:
On the 1st April, the National Living Wage will increase from £7.20 to £7.50 per hour for workers aged 25 and over. All other National Minimum Wage rates will also increase from the same date to:
- £7.05 per hour for 21-24 year olds;
- £5.60 per hour for 18-20 year olds;
- £4.05 per hour for those over compulsory school age but under 18; and
- £3.50 per hour for those on the apprentice rate (where the apprentice is under 19 or 19+ but in the first year of their apprenticeship).
Employers will also see increases in statutory payments. Statutory Maternity Pay and all other family friendly payments will increase to £140.98 per week from the 2nd April. From the 6th April, Statutory Sick Pay will increase to £89.35 per week for up to 28 weeks.
The rules around employing foreign workers are changing. From April, the Tier 2 minimum salary will be increasing for the second time in six months to £30,000 per year. Certain roles, including nurses and some teachers, are exempt from the rise until July 2019. All Tier 2 sponsors will be required to pay an Immigration Skills Charge from the 6th April. This is set at £1,000 per year for each Certificate of Sponsorship, with a reduced rate of £364 for small and charitable sponsors.
Larger employers are facing a double change with the introduction of the gender pay gap and the apprenticeship levy. From the 6th April, private sector employers with 250 or more employees have to report on their gender pay gap each year. Employers have to take a data snapshot of pay details on the 5th April 2017 and produce a report containing specific calculations within a year. The report needs to be uploaded to their website and a government website.
The apprenticeship levy requires employers with an annual paybill of more than £3 million to pay 0.5% of their total paybill in to a digital apprenticeship account on a monthly basis, minus a £15,000 government allowance. The levy amount can be used to pay for apprentice training for up to two years after entering the account.
