April 2017 Employment Legislation Changes

It’s that time of year again when the Government introduces a range of changes to the law affecting employers. As you get ready for the next financial year here are a number headlines to consider.

Apprenticeship Levy – The much anticipated apprenticeship levy is due to come into force on 6 April 2017. Where employers have a pay bill of more than £3 million they will be subject to the levy which will be used to provide access to funding for apprenticeships.

Gender Pay Reporting – Employers with 250 or more employees will be required to report on their gender pay gap. This will include reporting on the proportion of males and females in different pay quartiles as well as those who receive bonuses.

National Minimum Wage Increases – Further increases to the National Minimum Wage are due to be introduced on 1 April 2017. Among other increases, the rate for workers of age 25 and over will rise from £7.20 to £7.50.

Statutory Redundancy Pay increase – From 6 April 2017, a week’s pay for the purposes of calculating a statutory redundancy payment will increase from £479 to £489. Employers dismissing employees with service of two years’ or more will need to adjust their calculations to take into account this increase.

Employment Tribunal Compensation Limits – The increase in the week’s pay will also affect the basic award that can be made by an Employment Tribunal in unfair dismissal cases. At the same time, the maximum compensation award will increase from £78,692 to £80,541.

Immigration Skills Charge – Employers sponsoring skilled workers under tier 2 of the immigration points- based system will be required to pay a levy of £1000 for each certificate of sponsorship per year. Smaller employers and charities will pay a reduced levy.

These are just some of the changes for the new financial year. For more detail or advice contact us.

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