Employment Law Changes: October 2016 and Beyond

Posted by admin on 26/09/2016

Originally by Bar Huberman at Personnel Today on 15 September 2016

Introduction

The autumn months promise to be a busy period for HR practitioners as they prepare for a host of upcoming employment law changes. Below are the top ten legislative updates employers need to be ready for, even though many implementation dates are still to be confirmed.

1. National Minimum Wage Increases for Some Age Bands

From 1 October 2016, the national minimum wage rates rise as follows:

• Workers aged 21–24: £6.95 per hour
• Workers aged 18–20: £5.55 per hour
• Workers under 18 (no longer of compulsory school age): £4.00 per hour
• Apprentice rate: £3.40 per hour

The national living wage for workers aged 25 or above remains unchanged. After this autumn increase, all future changes to both the national minimum wage and national living wage will occur in April each year, beginning April 2017.

2. English-Language Requirement for Public-Facing Public-Sector Workers

Public-sector employees who communicate with members of the public must demonstrate fluency in English (in Wales, fluency in English or Welsh). A draft code of practice has been published to guide public authorities on compliance. Although expected to be introduced in October 2016, the start date has yet to be confirmed.

3. Closure Notices for Employers Using Illegal Workers

Under new powers, if illegal working is suspected, authorities can issue a closure notice preventing access to a firm’s premises for up to 48 hours. A further order may then restrict or prohibit access for up to 12 months. While no official commencement date has been announced, these measures are anticipated imminently.

4. Immigration Skills Charge Comes into Force

From April 2017, organisations sponsoring Tier 2 visa holders from outside the European Economic Area and Switzerland will pay an immigration skills charge. This levy aims to reduce reliance on migrant workers by offsetting costs to the UK workforce.

Related Resources: Gender Pay Gap Reporting

• What information will employers be required to publish?
• Webinar: Preparing for gender pay gap reporting
• How to measure and report a gender pay gap

5. Gender Pay Gap Reporting Established

Employers with 250 or more employees must publish annual data on their gender pay gap and gender bonus gap. The first reports are expected by April 2018, based on pay data from the April 2017 payroll period and bonus information from the preceding 12 months.

6. Apprenticeship Levy and Reforms

From 6 April 2017, large employers will pay an apprenticeship levy of 0.5% of their paybill to fund apprenticeship training and assessment. Additional reforms include:

• Protection of the term “apprenticeship”—training providers cannot label non-statutory courses as apprenticeships.
• Public-sector bodies in England with 250+ employees must ensure apprenticeship starts account for at least 2.3% of their workforce annually.

7. Public-Sector Exit Payment Rules

Employees earning £80,000 or more who return to the public sector within one year of exit must repay their previous exit payment on a tapered basis. Additionally, a cap of £95,000 will be placed on public-sector exit payments. Implementation dates are pending.

8. Trade Union Law Reforms

The Trade Union Act 2016 introduces significant changes to industrial action rules, including new voting thresholds for strike ballots. HR professionals in unionised environments should review these reforms; commencement is expected soon but not yet confirmed.

9. Enhanced Rights for Sunday Shop Workers

New protections for shop workers include the right to object to working beyond their normal Sunday hours and reduced notice periods for large shops opting workers out of Sunday schedules. Implementation details are yet to be disclosed.

10. Tax-Free Childcare Scheme

Early in 2017, working families where both parents earn between the national minimum threshold and £100,000 per year will benefit from a government contribution of 20% toward annual childcare costs (capped at £2,000 per child). The scheme applies to children under 12.