Upcoming Employment Legislation
This summary outlines the expected changes to employment legislation in 2018 and 2019.
- Abolition of childcare vouchers
The government has delayed its scrapping of the workplace childcare voucher system, which was due to close on 5 April 2018, by six months following a vote in Parliament. The abolition is among changes to be made as part of the roll-out of universal credit.
A new system of tax-free childcare will be introduced, entitling families to claim up to £2,000 per child. The new scheme does not involve employers, individuals will apply themselves.
- Executive pay gap reporting in force
From 1 January 2019, regulations made under the Companies Act 2006 require UK listed companies with more than 250 UK employees to report annually on the pay gap between their chief executive and their average UK worker. The first reports are due in 2020.
- Pay slip changes
There are two important changes to the Employment Rights Act 1996, affecting pay slip information, which will come into force on 6 April:
- Employers must include the total number of hours worked where the pay varies according to the hours worked, for example under variable hours or zero hour contracts.
- Payslips must be given to ‘workers’ and not just employees.
- Tax on termination payments
In April 2019, the government plans to make any part of a termination payment over the sum of £30,000, subject to employer NICs. This change was delayed from April 2018.
- Parental Bereavement Leave Rights – Expected 2020
The Parental Bereavement (Leave and Pay) Bill provides at least two weeks’ leave for employees following the loss of a child under the age of 18. Employees with 26 weeks’ continuous service will be entitled to paid leave at the statutory rate and other employees will be entitled to unpaid leave.
If you have any concerns about the upcoming employment legislations and how they may affect your business then please do not hesitate to give us a call on 01494 817193 or email us: firstname.lastname@example.org