What changes are in store for Employment Law in April 2019?
April 2019 is an important month for both Employers and Employees. For Employers it could mean an increase in outgoings and for Employees it could mean a pay rise or an increase in statutory entitlements, so let’s take a look.
From 1 April 2019, the National Minimum Wage will increase to the following rates:
Aged 25 and over – £8.21 per hour
Aged 21 to 24 – £7.70 per hour
Aged 18 to 20 – £6.15 per hour
Under 18 years – £4.35 per hour
Apprentice – £3.90 per hour
Statutory Sick Pay will increase from 6 April 2019 to £94.25 per week (from the current rate of £92.05).
Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay and Adoption Pay will all see an increase, from 7 April 2019, from the current rate of £145.18 per week to £148.68 per week.
From 6 April 2019, Employers are required to provide all workers with an itemised payslip. This will be a big change for many Employers, as this is currently a right reserved for Employees.
If the workers, or Employees, pay varies due to the number of hours worked then the payslip must show the number of paid hours that have been worked. So, where overtime is paid at an enhanced rate, in addition to a usual salary, the payslip from 6 April 2019 must show the usual salary plus the number of hours worked in overtime and the rate of pay for those hours. This can be showed as a combined total of the hours if the same rate of pay is paid for all of those hours, or as separate items on the payslip where different pay is received for different types of work.
This will make it easier for workers to ascertain whether they are being paid in accordance with the National Minimum Wage, as well as in accordance with their Employment Contract and what they were expecting.
For Employers, they need to ensure that their payroll system is sufficient to collect all of the required information and produce such itemised payslips.