April not only brings with it lighter evenings but also a number of employment changes that employers should be aware of and incorporate into HR policies to avoid any penalties or potential tribunal action against them. This year sees increases to the national minimum and national living wages, as well as an increase to the maximum compensatory award for unfair dismissal cases at an employment tribunal.
Some key changes are summarised below or you can download our Employment Essentials guide for full details.
National Minimum Wage and notice periods
As of 1 April 2019 the apprentice rate rose to £3.90 (up by 20p), the minimum hourly rate for 16-17 year olds will increase to £4.35 (up by 15p), 18-20 year olds are entitled to a minimum of £6.15 (a 25p rise) and 21-24 year olds must be paid at least £7.70 (an increase of 32p) per hour.
National Living Wage rate increase
The National Living Wage (NLW) entitles all workers aged over 25 to a minimum wage over and above the National Minimum Wage. The NLW rate for 2019 has increased to £8.21 per hour.
Redundancy pay
The compensation limit for a one-off redundancy pay has been increased to £15,750 (formerly £15,240). The maximum figure which is used to calculate redundancy payments has increased to £525 from £508.
Employment tribunal awards increase
As of 6 April 2019, for unfair dismissal claims which have been brought to an employment tribunal, the maximum compensatory award has increased from £83,682 to £86,444. The basic award has increased to £15,750 (previously £15,240).
Family friendly policies
The rates of pay that employees are eligible for when they take maternity, paternity, shared parental and adoption leave have increased to £148.68 (from £145.18).
Prism is our fixed fee employment law solutions which are tailored specifically for SME employers. There are various packages available which offer you the flexibility to access the expert advice you need without the worry of incurring unexpected fees, and enabling you to deal with matters before they become an issue for your business. Please contact a member of our employment team for information on the available options.
All of the new 2019 rates and rules are detailed in our Employment Essentials guide which can be downloaded here.
If you would like to discuss any of the above employment law changes our Employment team will be happy to help.
