January 22, 2018

2018 Employment Law Changes

        • The General Data Protection Regulation (GDPR) will come into effect on 25th May 2018 with the ICO (Information Commissioner’s Office) having published draft guidance at the back end of 2017.
        • From 6th April 2018, childcare voucher schemes will be closed to new entrants.
        • The regulations governing Shared Parental Leave are to be reviewed by Department for Business, Energy and Industrial Strategy by the end of June 2018.
        • From 6th April 2018, there will be no difference between contractual and non-contractual Payment in Lieu of Notice (PILON) meaning all PILON’s will be taxable and subject to Class 1 National Insurance tax.
        • Termination payments up to £30,000 will still be exempt from Income and National Insurance Tax, however payments in excess of £30,000 will now be subject to National Insurance Tax.
          Gender Pay Gap reports for larger employers (250+ employees) must be published by 4th April 2018.
        • There are further increases to statutory payments with Statutory Sick Pay (SSP) increasing by £2.70 from £89.35 to £92.05 and Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP) and Statutory Shared Parental Leave (SSPL) increasing £4.20 from £140.98 to £145.18
        • From 1st April 2018, National Living Wage and National Minimum Wage will increase. The Low Pay Commission has recommended that:
          • The National Living Wage (for workers aged 25 and over) should increase from £7.50 to £7.83;
          • The rate for 21-24 year olds should increase from £7.05 to £7.38;
          • The rate for 18-20 year olds should increase from £5.60 to £5.90;
          • The rate for 16-17 year olds should increase from £4.05 to £4.20; and The apprentice rate (for apprentices aged under 19 or in the first year of their apprenticeship) should increase from £3.50 to £3.70.
        • The Low Pay Commission has recommended that the accommodation offset increases from the current £6.40 to £7.00 from 1 April 2018.
        • Auto-enrolment – From 6th April 2018, an employers minimum contribution into auto-enrolment schemes will double from 1% to 2%
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