Upcoming employment changes in 2018

Employment law changes to look out for in April 2018

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April 2018 will see a number of changes in employment laws and regulations which employers will need to be aware of.

Changes to the national minimum wage, statutory family-related pay and termination payments are all set to come into force.

In this article, the experts at LawforEmployers examine some of the key upcoming employment law changes employers will need to be aware of.

The national minimum wage increases in April 2018

Employers should ensure they are paying the national minimum wage to their employees as the new increased rates come into force on 1 April 2018.

The national living wage for workers aged 25 and over will increase to £7.83 per hour. Other national minimum wage increases will also come into force with rates rising to:

  • £7.38 per hour for workers aged 21 to 24;
  • £5.90 per hour for workers aged 18 to 20;
  • £4.20 per hour for workers aged under 18 who are no longer of compulsory school age.

Changes in taxation of termination payments is introduced

An important change employers need to be aware of is the change to rules on taxation of termination payments.

Previously, whether or not a payment in lieu of notice is taxable would depend on the terms of an employee’s contract of employment.

However, this has now been simplified so that all payments in lieu of notice will be taxable regardless of whether they are contractual or not.

Employers should ensure that no payments in lieu of notice made on or after 6 April 2018 are treated as non-taxable.

Increases to statutory family pay and statutory sick pay

1 April 2018 will see the weekly rate for statutory maternity, paternity, adoption and shared parental pay will increase to £145.18. Statutory sick pay will also increase to £92.50 from 6 April.

Other changes to look out for in 2018

In 2017, a number of cases involving the gig economy hit the headlines with individuals challenging their worker status.

The government responded by commissioning the Taylor review of modern employment practices which was published last year. This has led to the government launching four consultations, one of which is related to the issue of employment status.

Employers can participate in the consultation process by providing their views here before 11.45pm on 1 June 2018.

Stay up to date with the latest employment law changes with LawforEmployers

At LawforEmployers, our specialist solicitors understand just how difficult it can be for employers to stay up to date with the latest changes in employment law.

Our dedicated team works with many businesses in Lancashire and the rest of the UK to ensure they always have access to advice on any changes in employment law which affect them.

By working with LawforEmployers, you will have a specialist employment law solicitor on your side to help keep you compliant, allowing you to focus on growing your business.

To talk to one of our specialist solicitors about how we can help you, call us now on 01282 695 400.

Or, you can book your free employment law consultation by completing our online contact form here.