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Welcome to the latest Employment Law Newsletter which covers matters that we thought might be of interest.
If you have any queries on anything in this edition, please contact Nigel Harrison or Jack Latham on 01743 248545 or by email n.harrison@hatchers.co.uk, or j.latham@hatchers.co.uk. Also follow Hatchers’ Employment Team on Twitter @hatchershr
Whilst the New Year has commenced, employment law will continue to be dominated by the key issues of 2017.
This newsletter aims to provide a brief recap of these issues, what 2018 will bring and how your business may be affected.
[/spb_text_block] [spb_text_block title=”Minimum Wage Rates – 1 April 2018″ pb_margin_bottom=”no” pb_border_bottom=”no” width=”1/1″ el_position=”first last”]
[table type=”standard_minimal”]
[trow]
[thcol][/thcol]
[thcol]25 and Over[/thcol]
[thcol]21-24[/thcol]
[thcol]18-20[/thcol]
[thcol]Under 18[/thcol]
[thcol]Apprentice[/thcol]
[/trow]
[trow]
[tcol]2018[/tcol]
[tcol]£7.83[/tcol]
[tcol]£7.38[/tcol]
[tcol]£5.90[/tcol]
[tcol]£4.20[/tcol]
[tcol]£3.70[/tcol]
[/trow]
[trow]
[tcol]2017[/tcol]
[tcol]£7.50[/tcol]
[tcol]£7.05[/tcol]
[tcol]£5.60[/tcol]
[tcol]£4.05[/tcol]
[tcol]£3.50[/tcol]
[/trow]
[/table]
[/spb_text_block] [spb_text_block title=”Gender Pay Gap Reporting – 4 April 2018″ pb_margin_bottom=”no” pb_border_bottom=”no” width=”1/1″ el_position=”first last”]
Large private and voluntary sector employers are required to analyse their gender pay gap and publish a gender pay gap report no later than 4 April 2018. Thereafter, they must produce and publish an annual report.
Affected employers will be required to report:
•The overall median and mean gender pay gaps across their business, based on the gross hourly rate of pay for each employee;
•The proportion of men and women in each of four pay bands (quartiles);
•Information on the difference between men and women’s mean and median bonus pay over a 12-month period;
•The proportion of male and female employees who received a bonus in the same 12-month period.
The Government has indicated that it will:
•Run periodic checks to assess for non-compliance;
•Produce tables by sector of employers’ reported gender pay gaps; and
•Highlight and identify employers publishing particularly full and explanatory information
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Statutory Sick Pay (SSP)
The weekly standard rate for SSP is payable for up to 28 weeks for the days an employee normally works. SSP is paid when the employee is sick for at least four days in a row (including non-working days). SSP is to be paid from the fourth working day the employee is sick.
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[trow]
[thcol][/thcol]
[thcol]Weekly Earnings Threshold[/thcol]
[thcol]Weekly Standard Rate[/thcol]
[/trow]
[trow]
[tcol]2018[/tcol]
[tcol]£116.00[/tcol]
[tcol]£92.05[/tcol]
[/trow]
[trow]
[tcol]2017[/tcol]
[tcol]£113.00[/tcol]
[tcol]£89.35[/tcol]
[/trow]
[/table]
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Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP), Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (SSPP)
SMP and SAP are paid for up to 39 weeks. 90% of weekly earnings are paid for the first 6 weeks followed by 33 weeks at the lower of 90% of weekly earnings or the weekly standard rate.
SPP is paid for either one or two weeks at the lower of 90% weekly earnings or the weekly standard rate.
SSPP is available to be paid for up to 37 weeks at the lower of 90% weekly earnings or the weekly standard rate.
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[table type=”standard_minimal”]
[trow]
[thcol][/thcol]
[thcol]Weekly Earnings Threshold[/thcol]
[thcol]Weekly Standard Rate[/thcol]
[/trow]
[trow]
[tcol]2018[/tcol]
[tcol]£116.00[/tcol]
[tcol]£145.18[/tcol]
[/trow]
[trow]
[tcol]2017[/tcol]
[tcol]£113.00[/tcol]
[tcol]£140.98[/tcol]
[/trow]
[/table]
[/spb_text_block] [spb_text_block title=”Taxation of Termination Payments – 6 April 2018″ pb_margin_bottom=”no” pb_border_bottom=”no” width=”1/1″ el_position=”first last”]
Non-contractual payments received in connection with the termination of employment (such as ex gratia payments in settlement agreements, redundancy payments and compensation for unfair dismissal) are usually tax free for the first £30,000.
From 6 April 2018, the Government will seek to “clarify and tighten” the tax treatment for termination payments. Employers will be required to subject to tax an amount equivalent to the employee’s basic pay if notice is not worked.
Therefore, a single lump sum termination payment in a settlement agreement that is not separated into its individual elements risks being taxed entirely as earnings
[/spb_text_block] [spb_text_block title=”General Data Protection Regulations (GDPR) – 25 May 2018″ pb_margin_bottom=”no” pb_border_bottom=”no” width=”1/1″ el_position=”first last”]
The GDPR replaces the Data Protection Act 1998 and aims to strengthen individual’s existing rights in relation to how their personal data is controlled and processed by organisations. The key changes brought in through the GDPR are:
•The definition of “personal data” has been extended.
•The new regulations also apply to those organisations engaged as data processors.
•Sanctions: ◦A breach of the GDPR’s basic principles could result in a fine of up to the higher of €20m or 4% of the organisations total global turnover.
◦Failure to notify of data breaches or failure to adhere to the code of conduct can result in a fine of up to €10m or 2% of the organisations total global turnover.
•Consent will not be valid unless it is specifically given.
[/spb_text_block] [spb_text_block title=”Abolition of Employment Tribunal Fees” pb_margin_bottom=”no” pb_border_bottom=”no” width=”1/1″ el_position=”first last”]
The Government has promised to reimburse up to an estimated total of £30m worth of employment tribunal fees to Claimants who had paid fees between 29 July 2013 and 26 July 2017.
Claimants are able to apply for a refund of fees either online or by post. The total fees paid plus 0.5% interest will be refunded, if the application is successful.
The cessation of the Tribunal fees following the decision means that a significant deterrent to low value claims has been removed. The number of claims brought in the quarter following abolition was 66% higher than the previous quarter.
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Both Uber and Pimlico Plumber were involved in claims where it was held that self-employed contractors were actually workers and had the right to, amongst other employment rights, minimum wage and holiday pay. These cases are expected to be appealed in the Supreme Court.
In March 2018, the Court of Appeal will hear an appeal against minimum wage claims by care workers required to undertake ‘sleep in shifts’. In 2017, the Government announced a delay in HMRC enforcement of action for underpayment of wages and launched a voluntary scheme to identify payment shortfalls. Whilst the Royal Mencap Society (the appellant) have begun to pay their staff minimum wage for the sleep in shifts, they have stated that a 6 year back pay claim will cost £400m to the care sector and bankrupt many providers, unless further Government funding is made available.
[/spb_text_block] [spb_text_block title=”Further Information” pb_margin_bottom=”no” pb_border_bottom=”no” width=”1/1″ el_position=”first last”]
Through our quarterly newsletters, we will provide updates on the key developments in employment law. If you would like to be placed on our mailing list, please contact the Employment Team Secretary, Sally Edwards at s.edwards@hatchers.co.uk.
GDPR TRAINING
A number of organisations and individuals have expressed an interest in attending training on the subject of the new General Data Protection Regulations ahead of its implementation in May of this year. These sessions will be held at our offices and will include attendees from other organisations.
Places are limited and will be secured on a first come first served basis.
If you would like to express an interest in attending one of these sessions please contact Sally Edwards on 01743 247693 or s.edwards@hatchers.co.uk and one of the team will contact you with further details and an idea of the costs involved.
OUR AREAS OF EXPERTISE
The Employment Team here at Hatchers can advise businesses and employees on all matters relating to employment law including:
• Contracts of Employment and Service Agreements
• Validity and enforceability of post termination restrictions
• Settlement Agreements
• Workplace disputes
• Redundancy processes
• Unfair/wrongful dismissal
• Employment Tribunal proceedings
• Unlawful deductions from wages
• Discrimination in the workplace
• The effect of a transfer to a new employer
• Business takeovers
• Workplace training
Disclaimer: The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.
The partners of Hatchers Solicitors LLP and the writer of this Newsletter will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this Newsletter.
The content of this Newsletter is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.
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