Employment Law Changes To Take Effect in April 2017
30 March 2017
April can be a major month for when employment law changes take effect. Here’s an overview of what you may need to be aware of:
National Living Wage
- On the 1st April, the National Living Wage will increase from £7.20 to £7.50 per hour for workers aged 25 and over.
National Minimum Wage
National Minimum Wage rates will also increase from 1st April 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.
Gender Pay Gap
- 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 wage bill of more than £3 million to pay 0.5% of their total wage bill 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.