April 2019 employment law changes: Seven key HR things to do:
March 28, 2019
1. Meet your Second gender pay gap reporting deadline
For private-sector and voluntary-sector employers with 250 or more employees, the deadline to publish their second report is 4th April 2019, while public-sector employers must publish their second gender pay gap report no later than 30th March 2019.
The gender pay gap report must appear on the employer’s website in a publicly accessible manner and must remain there for at least three years once published.
Employers should also upload the gender pay gap results to the government’s reporting website. Although commentary on the gender pay gap results is not required, many organisations are choosing to add a narrative to help to put their numbers in context, particularly where there is a wide gender pay gap.
Once the deadlines pass, large employers that have not published their gender pay gap figures may face public criticism for failing to do so.
2. Ensure that your organisation’s payslips are updated
There are two important changes to the rules on payslips, that come into force on 6th April 2019. The changes cover payslips for pay periods that begin on or after this date.
Firstly, payslips must include additional information for individuals whose pay varies depending on the number of hours that they have worked. Where an individual’s pay varies by reference to time worked, the payslip must set out the number of hours paid for on this variable basis. The hours can be shown either as a single total of all such hours in the pay period, or can be broken down into separate figures for different types of work or different rates of pay.
Secondly, the right to a payslip is extended to all workers, rather than just employees, for pay periods that begin on or after 6th April 2019.
Pensions auto-enrolment
From 6th April 2019, the minimum level of employer contribution into a pensions auto-enrolment scheme increases from 2% to 3%, with an increase to the employee contribution from 3% to 5%. The total minimum contribution therefore increases from 5% to 8%.
3. Ensure that your organisation is paying the national minimum wage
The national living wage for workers aged 25 and over increases to £8.21 per hour on 1 April 2019.
Other national minimum wage rates also increase. For workers aged 21 to 24 it will rise to £7.70, for workers aged 18 to 20 it will increase to £6.15 and for workers under 18 who are no longer of compulsory school age it will rise to £4.35. The apprentice rate will also increase to £3.90 and the accommodation offset rate will rise to £7.55.
Employers, should ensure that workers are being paid at least the national minimum wage rate that applies to them and must keep adequate records of all payments so that they can show that their employer has complied with the national minimum wage rules.
4. Increase statutory family-related pay and statutory sick pay
The weekly rate of statutory maternity, paternity, adoption and shared parental pay increases to £148.68 for pay weeks commencing on or after 7thApril 2019.
The weekly rate of statutory sick pay increases to £94.25 from 6th April 2019.
Income tax
From 6th April 2019, the personal allowance increases from £11,850 to £12,500 and the higher rate threshold from £46,350 to £50,000.
5. Adjust your organisations statutory redundancy pay calculations
There will be new limits on employment statutory redundancy pay, that will come into play on 6th April 2019.
Employers that dismiss employees for reasons of redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age. The weekly pay is subject to a maximum amount. This amount is £525 from 6th April 2019.
6. Start work on your 2019 modern slavery statement
The government has been ramping up its efforts to ensure that large organisations publish annual modern slavery and human trafficking statements. This is a legal requirement for commercial organisations with a total turnover of at least £36 million per year.
While there is no strict legal timetable for publication, the government’s guidance recommends that statements be published within six months of the end of the companies’ financial year
Unfair dismissal compensation
The maximum compensatory award for unfair dismissal increases from £83,682 to £86,444 for dismissals that take place on or after 6th April 2019.
7. Continue to monitor Brexit negotiations
Lastly, employers should continue to keep track of developments as the Brexit crisis in UK politics carries on.
Despite the uncertainty, there are practical steps that employers can take now. These include writing to staff who are EEA nationals working in the UK to urge them to apply for a settled or pre-settled status, so that they can continue to live and work in the UK indefinitely.
