Employment law updates coming into effect from April 2018 include:
1.The National Living wage
On 1 April 2018, the rates of the national minimum wage will increase.
- Workers aged 25 and over (the national living wage) increases to £7.83 per hour
- Workers aged 21 to 24 inclusive increases to £7.38 per hour
- Workers aged 18 to 20 inclusive increases to £5.90 per hour
- Workers aged under 18 who are no longer of compulsory school age increases to £4.20 per hour
- Apprentices aged under 19 increases to £3.70 per hour
2. Statutory family-related pay and sick pay rates
From 1 April 2018, the weekly rate of statutory maternity, paternity, adoption and shared parental pay will increase to £145.18.
From 6 April 2018, the weekly rate of statutory sick pay will increase from £89.35 to £92.05.
3. Statutory redundancy pay
From 6th April 2018, the maximum amount of a week’s pay for a statutory redundancy pay increases to £508.
4. Changes to income tax allowances and thresholds come into force
From 6 April 2018, the personal income tax allowance increases to £11,850, and the higher rate tax threshold to £46,350.
5. Employer contribution into a pensions auto-enrolment scheme increases
From 6 April 2018, the minimum level of employer contribution into a pensions auto-enrolment scheme will increase from 1% to 2%. From April 2019, this will increase further to 3%.
6. Change to tax treatment of payments made in lieu of notice introduced
From 6 April 2018, all payments made in lieu of notice will be subject to tax and Class 1 national insurance contributions.
7. General Data Protection Regulation (GDPR) becomes law
From 26 May 2018, GDPR will apply automatically to the UK and aims to create a more consistent protection of consumer and personal data across EU nations.
For more information and advice you can visit our news and updates page.
By Bruce Ramshaw
Principal Consultant
