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Employment Law Changes

Every April, there are key changes in employment law to take note of. Here are some of the most important:

The new National Minimum Wage (NMW) and National Living Wage (NLW) Rates will take effect from 1 April 2019:
The new rates are as follows:
• £8.21 per hour for ages 25 and over.
• £7.70 per hour for ages 21 to 24.
• £6.15 per hour for ages 18 to 20.
• £4.35 per hour for school leaving age to 17.
• £3.90 per hour for apprentices. This rate only applies to apprentices who are either under 19 or if over 19, in the first year of their apprenticeship.

NMW refers to the minimum rate of pay which most workers under the age of 25 are entitled to. NLW refers to the minimum rate of pay which most workers aged 25 and over are entitled to. NMW/NLW rates do not apply to self employed workers, volunteers, company directors, members of the armed forces, family members or people who aren’t family members but who live in a family home and who undertake household tasks, or short term work experience students. If these rates of pay are not met, employees may make an Employment Tribunal claim against their employers.

Settled Status for EU Nationals

European workers currently residing in the UK and who have been here for 5 years may apply for settled status which will allow them to remain indefinitely in the UK after the end of the Brexit transition period in 2021. Those who have not accrued the required residency conditions may apply for temporary status which will allow them to remain until they have reached the required 5 years.

Auto Enrolment Contributions

From April, the contributions made to pensions under auto enrolment schemes will increase for both employees and employers, to 3% and 5% respectively.

Payslips

From 6 April, the legal right to receive a payslip will be extended to workers (rather than only employees). Employers will also have to include the total number of hours worked on payslips for those whose wages vary depending on how much time they have worked.

If you’ve any questions about any of the above, please contact Robin Williams at Dawson Hart on 01825 762281.