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Are you ready?
Spring may still feel a long way off but it is fast approaching and along with its arrival are the 2016 employment law changes commencing in April. Changes in employment law generally take place in April and October each year.
 
In 2016, employers will begin to feel the impact of the employment law reforms made by the first Conservative Government in nearly 20 years, with some controversial decisions affecting a number of HR areas.

Here are some of the key changes due to come in this year:

• The rates will remain the same for Statutory Maternity, Paternity, and Adoption & Shared Parental Pay at £139.58 per week.
• There will be a new single- tier pension replacing the five separate elements of the current pension provision. This is a drive by the government to simplify the    system.
• National Living Wage- A new, compulsory living wage is to be introduced as of 1 April with an hourly rate of £7.20 for anyone 25 or older.

The national living wage is separate to the living wage, a recommended rate based on the cost of living, used by the Living Wage Foundation.
Another change concerning minimum pay is the doubling of the penalty for failure to pay staff the national minimum.

• Sick Pay- the statutory rate of sick pay has been frozen at £88.45 per week for 2016/17.
The rates normally increase every year, but a fall in the consumer prices index has meant no uplift for 2016/17.
Statutory sick pay will also remain the same.

• Apprentices- the government is reducing the cost to employers of hiring apprentices by abolishing employer National Insurance Contributions for apprentices under the age of 25.
• Income Tax- the threshold for income tax will be increased as of 6 April so the personal allowance will be £11,000.
• Basic Rate Tax- this threshold is to increase to £32,000 as of 6 April.
• Gender Pay Gap Reporting- new Regulations set to come into force in October 2016 will see large businesses (more than 250 employees) in the private and voluntary sectors required to publish a report on pay to illustrate any salary gaps between genders.

However, further details of what this means for employers are yet to be disclosed, including the particulars that they will need to provide and where the information should be published.
It is expected that employers will be given time to get to grips with the legislation before the reporting requirements come into force.
How do we manage to do this?

As HR Practitioners, it is important that we are up to date as much as possible with changes in legislation.

To get your organisation on the right track call us now for an informal appraisal of your business needs on 0141 582 1474

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