Alan McCormack | Senior Associate

April – a month of important employment law changes

1 April

National Minimum and Living Wage rate changes

The National Living Wage for workers aged 25 and over will increase to £7.83 per hour.

The national minimum wage (NMW) rates will increase to

  • £3.70 from £3.50 for apprentices
  • £4.20 from £4.05 for 16 and 17 year olds
  • £5.90 from £5.60 for 18 – 20 year olds
  • £7.38 from £70.5 for 21 – 24 year olds

New statutory rates

  • Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay and Statutory Adoption Pay to increase to £145.18 per week.

4 April

Private sector employers must publish first Gender Pay Gap reports before this date (snapshot date  5 April 2017).

6 April

Statutory Sick Pay increases to £92.05 per week

Taxation of termination payments

The way in which termination payments are taxed changes on 6 April 2018.

New rules will apply to any termination of employment that takes place on or after 6 April 2018. From this date all notice pay is to be treated as earnings and will be subject to tax and national insurance deductions – regardless of whether or not there is a pay in lieu of notice clause (PILON) in the employment contract.

For employment terminating before 6 April 2018 the old rules will apply (even where the termination payment is paid after this date).

A week’s pay

The maximum amount for a week’s pay used to calculate statutory redundancy payments will increase to £508 per week from £489 per week.

Maximum compensatory award

For dismissals on or after 6 April 2018 the maximum compensatory award for unfair dismissal is increasing from £80,541 to £83,682 (or a years’ salary if you earn less than this.

At Jackson Boyd we have a great deal of experience of dealing with employment cases. To discuss a potential case with us, or for advice in relation to the above changes, please contact us online by clicking here or speak to a member of our specialist team on 0333 222 1855.

Alan McCormack

Alan McCormack

Employment Law Team

Contact us Share this page

Request a free call back

Our specialist lawyers will call you back at your preferred time to discuss your situation and explain how we can help.

Request Call Back
Sending

What our clients say about us

Read more