EMPLOYMENT LAW UPDATES
April 5th, 2018
The following key changes to employment law will come into force in April 2018:
- The National Minimum Wage (Amendment) Regulations 2018 will increase the national minimum wage (NMW) and national living wage (NLW) rates from 1 April 2018. The NLW for workers aged 25 or over will increase to £7.83 per hour, the NMW standard rate for workers aged 21 to 24 will increase to £7.38 per hour.
- Statutory maternity, adoption, paternity and shared parental pay from £140.98 to £145.18 from 1 April 2018 and it will also increase the weekly rate of statutory sick pay from £89.35 to £92.05 from 6 April 2018. The earnings threshold, below which employees are not entitled to these statutory payments, will increase to £116 per week from 6 April 2018.
- Statutory redundancy will increase the maximum amount of a “week’s pay” from £489 to £508 from 6 April 2018.
- An eligible worker is entitled to be automatically enrolled into a workplace pension scheme, at £10,000 from 6 April 2018. The employer’s minimum contribution to a workplace pension scheme will increase from 1% to 2% from 6 April 2018 (and then to 3% from 6 April 2019) and the worker’s minimum contribution will increase from 1% to 3% from 6 April 2018 (and then to 5% from 6 April 2019).