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Tue 05 Mar 2019

3 Key Dates For Your Employment Law Diary: Changes to Employee payments from April 2019

3 Key Dates For Your Employment Law Diary: Changes to Employee payments from April 2019

With the bad weather (hopefully!) behind us and spring in the air, it is time for the annual increases to statutory employee payments to come into effect along with new obligations for employers to provide itemised payslips for workers.

 

1st APRIL 2019

Increase in National Living Wage

From the 1st April the National Living Wage for working adults aged 25 or over increases from £7.83 to £8.21 per hour, a rise of 4.9%.

Other National Minimum Wage rates will also increase from the same date in the following ways:

  • 21- to 24-year-olds – the rate rises from £7.38 to £7.70 per hour
  • 18- to 20-year-olds – the rate rises from £5.90 to £6.15 per hour
  • 16- to 17-year-olds – the rate rises from £4.20 to £4.35 per hour
  • For apprentices – the rate rises from £3.70 to £3.90 per hour

 

6th APRIL 2019

Increase in Statutory Sick Pay

From 6th April 2019 the new rate for Statutory Sick Pay will be £94.25 (increasing from £92.05).

Itemised payslips

Employers will be required to provide itemised payslips for both employees and workers with effect from 6th April 2019. The current position is that it is only employees who are entitled to this, but from April, will now include all workers including casual and zero-hours workers.

Payslips from April 2019 will now have to show additional information for those workers whose pay varies depending on the number of hours they have worked and will need to show the number of hours for which the worker is being paid. The changes apply in particular to those workers whose hours or rate of pay varies, such as those working night shifts at a premium rate.

To comply, the payslips must make it clear which pay period the information relates to and either:

  • show the combined number of hours worked for which payment is being made; or
  • itemise the figures for different types of work worked and/or different rates of pay.

 

7th APRIL 2019

From 7th April 2019, statutory maternity, paternity, shared parental pay and adoption pay will be increased for the 2019/2020 tax year as follows:

  • Statutory Maternity Pay: up to 39 weeks at a rate of 90% of the employee’s average gross weekly earnings for the first 6 weeks and then a maximum of £148.68 per week (up from £145.18 per week) for the remainder of the maternity pay period (or 90% of the employee’s average gross weekly earnings, whichever is lower).
  • Statutory Paternity Pay: up to 2 weeks at either the £148.68 per week (up from £145.18 per week) or 90% of the employee’s average gross weekly earnings, whichever is lower.
  • Statutory Shared Parental Pay: up to 37 weeks at £148.68 per week (up from £145.18 per week) or 90% of the employee’s average gross weekly earnings, whichever is lower.
  • Statutory Adoption Pay: up to 39 weeks at a rate of 90% of the employee’s average gross weekly earnings for the first 6 weeks and then a maximum of £148.68 per week (up from £145.18 per week) for the remainder of the adoption pay period (or 90% of the employee’s average gross weekly earnings, whichever is lower).

The rates are subject to Parliamentary approval, but this is unlikely to be withheld.

HEALTH WARNING!

As an employer it is important you are aware of your obligations and your employees’ entitlement to any of these statutory payments in order to avoid complaints in relation to any underpayments or a failure to provide itemised payslips, both of which could result in claims being brought in the Employment Tribunal.

For more information on any of the above or to discuss your employment needs generally, please contact Julie Edmonds, Solicitor, by email:jedmonds@jpclaw.co.uk,or by telephone: 0207 644 7286 or contact her via LinkedIn.

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice.

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