The coming month will mark the introduction of some significant changes to employment law. Wealth management solicitors North Wales is promising to make the transition easier for organizations.
Given the recent developments in employment law to be introduced on a massive scale in the workplace next month, employees may stand to benefit immensely. These new rules, which will be effective from April 6, will affect the country’s minimum wage, statutory sick pay and tribunal payouts. Both employers and employees would need to accept the coming changes that will affect payslips and pension contributions.
There is a need for employers to be considerate of these changes so as to adjust their policies to fit the new measures.
|National Minimum Wage Changes April 2019|
|Current rate: April 6, 2018 to April 5, 2019||New rate: April 6, 2019 onwards|
|NLW (employees aged 21-24
|Employees aged 21-24||£7.38||£7.70|
|Employees aged 21-24
|Employees aged 21-24
National minimum wage
By April 1, 2019, there will be increase in the national minimum wage rates for all reference payment periods. The new rates will apply to all workers under the minimum wage – workers 25 years and above will now be qualified to a £8.21 per hour minimum rate under the new policy. As a result, all full-time workers 25 years and above on the NLW will get a £690 minimum each year.
Statutory sick pay
The criteria for statutory sick pay will undergo a change after April 2019. This will hold in addition to the weekly employee entitlements. To qualify for payments of £94.25, each employee will need to earn a minimum of £118 each week.
From April 6, 2019, the money due to employees from a successful tribunal claim will increase as well. Any successful claim for unjust dismissal could lead to a maximum recompense of £86, 444, from this date onward. The implication is that employers will be required to be extra careful when taking corrective actions, making sure that they are fair in their procedures.
Employers will need to reconsider their payslip process, starting from April 6. The new laws allow for both employers and employees to be qualified for itemized pay statements. Also, it will become necessary that payslips include the total number of worked hours. The HR and Payroll departments will need to collaborate more in the upcoming month to make sure that the appropriate staff members get their payslips according to the new requirements.
Companies will have to prepare for necessary arrangements, given the introduction of the new changes. By April, the minimum auto-enrolment contributions will go up. There is a need for businesses to be conscious of the new changes to prepare their budgets in accordance with the increase in contributions.
|Employer minimum contribution||Employee contribution||Total minimum contribution|
|Current rate: April 6, 2018 to April 5, 2019||2%||3%||5%|
|New rate: April 6, 2019 onwards||3%||5%||8%|
Workers also need to be aware of the introduction of the changes, and the effects on their salary. Further, Payroll will need to be well-informed about these changes in order to avoid the wrath of the pension regulator.
All businesses should be completely mindful of these changes that will be introduced in April 2019. To experience a seamless transition into the new developments, it is important to start implementing plans as early as possible for these changes. Consulting with Solicitors North Wales who specialise in Wealth Management can help resolve any concerns.