Employment law: what s changing in April?

National base pay

The nationwide living wage is being introduced for workers aged 25 and over. It will initially be set at 7.20 per hour, rising to 9 by 2020. It is essentially a premium on top of the existing nationwide minimum wage rates (which will remain to get more youthful employees).


There is already a living wage set annually by the Living Wage Foundation (7.85 per hour, 9.15 in London). This is a voluntary wage, unlike the new nationwide living wage which is mandatory.

The optimum financial penalty for employers who underpay the national base pay is enhancing from 100 % to 200 % of each underpayment.

Tribunal awards

The maximum countervailing award for unreasonable dismissal will increase from 78,335 to 78,962.

The maximum amount of a week s pay (used to compute statutory redundancy pay and fundamental awards etc.) is rising from 475 to 479.

Statutory pay

There is no proposition to enhance the statutory rates this year. Statutory maternal, paternity, adoption and shared parental pay will remain at 139.58 per week and statutory sick pay at 88.45 per week.

Tribunal postponements

New procedural rules will apply to tribunal claims brought on or after 6 April:

There will be a limit of two postponements per celebration, per case, although additional demands will be approved in extraordinary circumstances.

Any application for postponement presented less than seven days prior to a hearing or made at the hearing will just be approved in extraordinary scenarios.

Tribunals must think about an expenses order if a last minute postponement is granted, however expenses will not always be awarded.

The brand-new limitations will not apply: (1) where both celebrations accept a postponement and the tribunal believes it will help with settlement; and (2) where the tribunal considers that postponement is required due to an act or omission of the tribunal or another celebration.
Remarkable circumstances may consist of disease relating to an existing long term health condition or disability.
Charges for non-payment of tribunal/settlement awards

Punitive damages for companies who do not pay work tribunal awards or settlement amounts due under a COT3 are being introduced. If you are interested in Employment law this is useful website. The charge will be 50 % of the overdue award, based on a minimum of 100 and an optimum of 5,000. Employers will obtain a reduction of 50 % of the charge if they pay the reduced penalty and the whole overdue quantity within 14 days.

Payment of public sector exit payments

Public sector workers making 80,000 or more will need to repay given exit payments if they are re-employed in the general public sector within 12 months. The amount of exit payment to be repaid will differ depending on the length of time in between termination and re-engagement.

A new cap of 95,000 on the total aggregate value of most exit payments made to public sector workers is anticipated to come into force in October 2016. The government is likewise seeking advice from on other reforms to public sector exit payments, consisting of an optimum tariff for calculating payments of 3 weeks’ pay per year of service and a cap of 15 months wage for redundancy payments. Examination closes in May 2016.

Recruitment companies

Employment service and companies will be restricted from hiring exclusively from other European Economic Area nations without (prior to or at the same time) advertising the vacancy in English in Great Britain.

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