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Employment Law Changes 2017

Employment Law image

The result of the EU referendum has continued to cast shadows over workplace regulations and employment law, with the result making many employers more wary of any changes in the current legal framework. We’ve outlined the five UK employment law changes that you should be looking out for in 2017/18.

National Living Wage to Increase

As of April 2017, the National Living Wage will be increasing from £7.20 per hour to £7.50 per hour. The National Minimum Wage for apprentices and people under 25 will also be addressed and is likely to rise next month.

Statutory Pay to Increase

Over the next month we can expect more pay changes in the form of statutory rates of pay for maternity, paternity, adoption and sick pay. These rates did not rise in 2016, though as of April 2017, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Adoption Pay will all rise from £139.58 a week, to £140.98 a week.

Furthermore, Statutory Sick Pay will increase by £0.81, rising to £89.35 per week.

It is important to note that, in order to be entitled to these payments, the employee’s average earnings must be equal to or more than the lower earnings limit, which is also set to increase next month, rising by £1 to £113 per week.

Gender Pay Gap Reporting

From next month onwards, larger organisations (those employing over 250 people) are required to start collecting data for their firs
t gender pay gap report – which should be published by April 2018. We expect this to be rolled out across smaller organisations in the years to follow.

Pension Auto Enrolment

By the 1st February 2018 all UK businesses must ensure that all of their employees are enrolled in a workplace pension scheme. If you are a small business that hasn’t yet started preparing for these changes, this will affect you in the near future so be prepared.

General Data Protection Regulation

Last year, an EU General Data Protection Regulation (GDPR) was passed by the European Parliament. Despite the decision to leave the EU, the regulation is expected to come into effect on 25th May 2018.

As a result of GDPR, employers will be required to provide employees and candidates with more information regarding the way their data is processed, including how long the company intends to store their data and whether this data will be transferred outside of the UK.

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