New employment law legislation comes into effect in April 2016
The month of April is always important for UK employment law, when new legislations are introduced and employer responsibilities develop and change. April 2016 is no different, with the spotlight shining brightly upon the introduction of the new national living wage.
However, there are other key changes being introduced of which employers need to be aware. Therefore, this week, Protecting.co.uk will be detailing four of the new developments which are to come into effect in April 2016 (followed by four more next week).
1) As mentioned above, from 1 April 2016 the new national living wage will come into effect throughout the UK. The national living wage is a higher tier of the national minimum wage. Under the new law, workers aged 25+ must be paid at least £7.20 (a 50p increase on the national minimum wage of £6.70).
The government advises employers to carry out the following four point check-list:
- Check you know who is eligible in your organisation.
- Take the appropriate payroll action.
- Let your staff know about their new pay rate.
- Check your staff under 25 are earning the correct rate of national minimum wage
2) Employers found not paying the national living wage or the national minimum wage, will be fined double more than in previous years, as the penalty increases from 1 April 2016.
3) From 6 April 2016, employers will no longer be required to pay national insurance contributions for apprentices under the age of 25. This is designed to encourage the creation of apprenticeships.
4) A new State Pension is to be introduced from 6 April 2016 with a few consequences, of which employers and employees should be made aware. The new State Pension replaces the Basic State Pension and the Additional State Pension.
‘Contracting out’ of the Additional State Pension scheme to workplace, personal or stakeholder pensions will no longer be valid and employees who have been doing this will notice they are paying more national insurance than they are used to. Employers have a duty to discuss this issue with their workers.
To find out more about Protecting.co.uk ‘s employment law services, please click here.