April showers… and Employment Law Changes

It’s April. The inevitable showers are here and, as always, April is an important month for Employment Law. 2016 is no different with some key legislative developments taking place. Read on to take a look at these changes, in addition to some other important, recent developments

1. Introduction of the National Living Wage

On 1 April 2016 the national living wage (the "NLW") was introduced. We spoke about this in one of our previous blogs. This is a premium, which is added to the national minimum wage for workers aged 25 and over and is currently set at 50p. Therefore, the current national living wage is now £7.20 per hour. Does this affect your business? Have you ensured that your employees’ pay is correct? At Consensus HR, we always advise our clients to use these situations to have a spring clean! Now is the time to check that all your employees’ wages meet the legal requirements and the expected level within their sector.The national minimum wage rates will rise in October. The Government plans for it to reach £9.00 per hour by 2020.

2. Financial penalties

The system of financial penalties for employers who do not pay awards ordered by an employment tribunal is now in place. The maximum penalty for a failure to pay an award is £5,000. This is in addition to any award made by the Employment Tribunal. Read our blog: 10 Most Expensive Tribunal Awards. Mistakes can be costly!

3. Increase in Employment Tribunal compensation limits

From 6 April 2016 the maximum compensatory award for:A standard unfair dismissal claim increased from £78,335 to £78,962A week's pay increased from £475 to £479 Is your business is keeping up with the ever changing Employment Law legislation?Contact Consensus HR for an informal, no obligation chat. Or - view our website (which is continually updated and gives Key HR Information). Consensus HR – Helping Companies with their People Solutions whilst Preventing People Problems.