In the New Year many businesses are planning their annual budget and strategy, have you also given thought to upcoming employment law changes?
- Increased rates for National Living Wage and National Minimum Wage from April 2017
The National Living Wage for those aged 25 and over will increase from £7.20 per hour to £7.50 per hour. There will also be rises to the National Minimum Wage payable to those under 25 and apprentices.
- Pension Auto Enrolment see our article
- Changes to Statutory Pay from April 2017
Statutory rates of pay for maternity, paternity, shared parental leave and adoption are increasing in April 2017, as is the rate of statutory sick pay. This is the first rise since April 2015.
- Apprenticeship Levy from April 2017
From April 2017, businesses with a salary bill of over £3 million must contribute funding towards the costs of UK apprentices via the Apprenticeship Levy.
In return, there will be greater funding for apprentice training for smaller employers. Employers not contributing to the Levy will contribute 10% to the cost of the training and the government will pay the remaining 90% up to the maximum amount.
The government will also offer support to organisations with fewer than 50 employees by paying 100% of training and assessment costs for their apprentices aged 16 to 18.
- Salary sacrifice scheme changes from April 2017 see our article
Possible changes to look out for:
- Brexit – the situation remains unclear about potential employment law changes as a consequence of Brexit, but 2017 will be a year of beginning negotiations rather than significant changes.
Theresa May has repeatedly said that workers’ rights will continue to be protected post-Brexit, but we still lack detail.
- The Trade Union Act 2016 became law in 2016 requiring higher thresholds for strike organisation, but this Act has yet to come into force.
- Shared parental leave for working grandparents may be delayed due to Brexit.
Business Garage is the consultancy for all your business support, from Business Strategy to Financial Management, Human Resources, Marketing Communications or Office Administration.
Contact our Milton Park office on 01235 433099 or [email protected] to find out how we can help your business drive to success.
