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2019 employment law changes – 5 changes to look out for

08 January 2019
2019 employment law changes – 5 changes to look out for

1. Executive Pay reporting

Rules come in to force on 1st January 2019, which means that UK quoted companies with more than 250 employees are required to report on ratios between their Chief Executive Officer and their average UK employees’ pay and benefits.

Although the first reports are not expected until 2020, employers need to ensure that the necessary figures are being calculated throughout 2019. The information will have to be included in the directors’ remuneration report.

2. Post Brexit Immigration – all change!

Whether it’s a deal or no deal, the rules around the employment of EU nationals will change.

Once the UK leaves that EU, free movement will end. However, it will take time to put in place the practical arrangements needed, to make this possible.

The Government has introduced a scheme, will allows EU workers in the UK, to apply for “settled status,” to be able to live and work in the UK indefinitely.

Going forward, it is very likely that the employment of workers from the EU is likely to be subject to restrictions in the same way as the employment of other foreign nationals, so employers will need to make changes to their recruitment processes accordingly.

3. Publish second gender pay gap report

By 31st March 2019, employers in the public authorities, with 250 or more employees are required to publish a report on their percentage gender pay gap annually within 12 months of that date.

For employers in the private and voluntary sectors, the deadline is 5th April 2019 and the reports must be accompanied by a written statement confirming their accuracy and signed by a senior person as per the legislation.

Employers must publish the reports on their website and the gov.uk website. However, although employers are not required to provide a narrative around any gender pay gap they may wish to do so, to help limit any reputational damage. Employers should also consider highlighting any reduction in the gap or be able to provide good reasons for any increases in the gap.

4. National Living Wage and National Minimum Wage rate increases

National living wage is due to increase to £8.21 per hour from 1 April 2019.

Other national minimum rates will increase to the following:

  • Workers aged 21-24: an increase to £7.70 per hour.
  • Workers aged 18-20: an increase to £6.15 per hour.
  • Workers over compulsory school age but not yet 18: an increase to £4.35 per hour.
  • The hourly, apprentice rate will also increase to £3.90 and the accommodation offset will increase to £7.55.

5. Workers entitled to itemised pay slips

From 6 April 2019, those recognised as ‘workers,’ shall have a legal right to receive a payslip.

Employers will need to include on the itemised pay statement, the total number of hours worked for which variable pay is received, where a member of staff’s pay varies according to the time worked.

It is advisable that employers ensure their payroll departments have made the necessary procedural changes to be compliant before April 2019.

If you have any questions about the upcoming employment law changes, please contact us via email at contact@davenportsolicitors.com or via telephone on 020 7903 6888.

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