April 2019 is fast approaching and for employment law, this only means one thing – a number of changes are on the horizon. 

It is important for both employers and employees to be aware of their rights and responsibilities under the updated regulations, the details of which are set out below.

Payslip Changes 

The current regulations regarding payslips require employers to provide their employees with an itemised payslip either electronically or in paper form. The payslip should include an employee’s gross and net pay, as well as any deductions that have been made (e.g. tax and national insurance).

From 6 April 2019, two key changes will be made:

  1. employers will be required to provide payslips to all workers and not just employees; and
  2. where an employee’s rate of pay changes according to the hours they have worked, their payslip must clearly outline the number of hours which they are being paid for.

It is important that employers are taking the necessary steps to ensure that they provide the correct information on payslips from 6 April 2019, as the consequences for not complying with the new regulations may result in:

  1. adverse publicity for the Company (as an Employment Tribunal can make a public declaration regarding the Company’s failure to include the correct information on payslips); and
  2. the Company being ordered to repay their employee(s) any unnotified deductions made from their wages within the last 13 weeks (regardless of whether such deductions were lawfully made).

National Minimum Wage Increase

The National Minimum Wage will increase on 1 April 2019. Not only is it important for employers to pay their employees the correct wage in accordance with the National Minimum Wage regulations but for compliance purposes, they should also keep a record of all payments made.

The National Minimum Wage will increase as follows:

Age 

Current National Minimum Wage 

National Minimum Wage From 1 April 2019 

25 years and over

£7.83 per hour

£8.21 per hour

21 – 24 years

£7.38 per hour

£7.70 per hour

18 – 20 years

£5.90 per hour

£6.15 per hour

16 – 17 years

£4.20 per hour

£4.35 per hour

Apprentice

£3.70 per hour

£3.90 per hour

Changes to Statutory Redundancy Pay Calculations 

If an employee with at least 2 years’ service is dismissed on the grounds of redundancy, the statutory redundancy payment awarded to them is based on the:

  • employee’s weekly pay;
  • length of service; and
  • age.

The weekly pay of an employee is capped at a maximum amount, currently £508.

From 6 April 2019, the cap on the weekly pay will increase to £525.

It is important that employers provide the correct statutory redundancy payment depending on whether their employee is made redundant before or after 6 April 2019. If the employee was made redundant before 6 April 2019, the former figure of £508 will apply, whereas if they are made redundant on or after 6 April 2019, the latter figure of £525 will apply.

Furthermore, if an employee is made redundant on or after 6 April 2019, the maximum payment amount for statutory redundancy payment will increase from £15,240 to £15,750.

Increase in statutory family-related and statutory sick pay 

An increase in pay for statutory maternity, paternity, adoption and shared parental leave is to be introduced from 7 April 2019 and will see the weekly allowance increased to £148.68.

As for statutory sick pay, the weekly pay will be increased to £94.25 from 6 April 2019.

Employers should ensure that these minimum rates are being paid and any policies which reference the rates are reviewed and amended accordingly.

Tribunal Awards 

From 6 April 2019, the following awards will be increased in the event of a successful Tribunal claim:

  • Unfair dismissal
    • the maximum statutory cap on compensation will increase from £83,682 to £86,444
  • Automatic unfair dismissal
    • the minimum basic award will increase from £6,203 to £6,408

If you would like further information or advice on these changes, please get in touch with our employment team in Stoke on 01782 202020 or email peter.gavin@freeths.co.uk.