What Every Employer Needs to Know This April: Budget, National Living Wage and Beyond

By 7th April 2017Blog

April is always a hectic time of year for those working in HR. With new professional and employment legislation soon coming to effect, the months building up to and during April are spent understanding these rules and ultimately, how to ensure their business remains compliant. Here we’ve rounded up the key changes that every employer and HR manager needs to know this April:

National Living Wage Rises

This is perhaps the biggest change to be aware of. As of 1 April 2017, National living wage for workers aged 25 and over has increased from £7.20 to £7.50 an hour. While many employees benefit from the rise, this can pose a challenge to employers, particularly in sectors such as social care where budgets are already stretched. Matt Wort wrote a recent article in HR Magazine, offering advice for care providers and tips in how to thrive despite the wage increases.

Our IQ:timecard software include National Living Wage compliance features to aid our clients as these rates continue to rise.

Statuary Pay Increases

Statuary pay such as maternity, paternity, adoption and shared paternal pay will rise to £140.98. This relates to any pay given after 2 April 2017.

From 6 April, redundancy pay also increases. The maximum weekly pay given will now be £489, rising £10 from the previous rate. Any employee dismissed for redundancy must be paid for two years’ service at an amount that is calculated by the employee’s age, length of service and their previous weekly pay.

Employers Must Report Their Gender Pay Gap Figures

From 6 April, gender pay gap reporting comes in to force. Currently, this relates to companies employing 250 people or more however this could soon change.

Employers must submit their gender pay gap analysis report in a publically accessible format on their own website, as well as uploading it to the Government’s reporting website. Personnel Today published an in-depth article explaining more about this legislation.

Immigration Skills Charge

Again, coming to force on 6 April is a new immigration skills charge. Employers that sponsor skilled workers must pay a £1,000 levy per certificate. This is lowered to £364 for charities and smaller employers. This will largely apply to workers who are under tier 2 of the immigration points-based system.

2017 has seen any more changes to employment law, and this is just a snapshot of the factors HR staff must now facilitate when managing their workforce.

How are you managing with these changes? Share your views with us online.