From 1 January 2019, UK listed companies with more than 250 employees will have to publish the pay gap between their chief executive and their average UK worker.  The requirement applies to financial years beginning on or after 1 January 2019 and reporting is to take place annually. While the first reports are not due until 2020 affected companies should ensure that they take steps to gather their evidence in good time so that they are able to calculate their pay ratios by the deadline. The information will have to be included in the director’s remuneration report.

Given the impact of gender pay gap reporting, it appears likely that ethnicity pay gap reporting will follow at a future date. 

On 29 March 2019 the UK will leave the European Union (EU). While there is confusion and uncertainty regarding the impact Brexit will have on day to day lives, the government has advised that existing workers’ rights will be maintained post Brexit. The government’s Good Work Plan (which was published in December 2018) also discusses the proposed enhancement of rights.

Public sector employers with 250 or more employees are required to report on their gender pay gap. This is based on data gathered on 31 March each year.

• National Living Wage will increase from £7.83 to £8.21 (for those aged 25 and over)
   
• The National Minimum Wage rate for workers will increase as follows:
  
  - For workers aged 21 – 24 years, hourly pay will increase from £7.38 to £7.70;
  - For workers aged 18-20 years, hourly pay will increase from £5.90 to £6.15;
  - For those over compulsory school age but not yet 18, hourly pay will increase from £4.20 to £4.35.
  - The hourly apprentice rate will also increase from £3.70 to £3.90 and the daily accommodation offset will increase to £7.55.

Private and voluntary sector employers of 250 or more employees are required to publish their annual pay gap data, based on a “snapshot” date of 5 April each year.

The first set of reports were published in 2018 and the second reports are due by 4 April 2019.

It will be interesting to see if reported gender pay gaps have started to reduce.

The weekly rate for statutory sick pay will increase from £92.05 to £94.25.

In December 2018, the Government published its “Good Work Plan” and made a commitment to increase the penalties for employers that repeatedly breach their employment law obligations. Tribunals have the power to impose a £5,000 “aggravated breach” penalty on employers losing cases. From 6 April 2019, the maximum limit on these penalties will rise to £20,000.

Previously, only employees were entitled to an itemised payslip. However, from 6 April 2019, employers will be obliged to provide pay slips to workers as well as employees. “Workers” covers agency staff, casual staff, zero hours staff etc.

Pay slips will also need to state the total number of hours worked where pay varies according to the hours worked.

It is therefore important that employers work with their payroll departments to ensure the correct procedure is in place ahead of April’s deadline.

6 April 2019 

Taxation on termination payments 

Since 6 April 2018, any payment in lieu of notice has been treated as earnings and subject to tax and class 1 NICs. From 6 April 2019, all termination payments above the £30,000 threshold will be subject to class 1A NICs (employer liability only) rather than just income tax. This will align tax and employer NIC, but will increase the cost of termination payments for employers. This change was delayed from April 2018. 

From April 2019, the minimum contributions for auto-enrolment pension schemes will increase for both employers and employees to 3% and 5% respectively. Employers should ensure that they consult with staff before making any changes to their pension contribution scheme. 

7 April 2019 

Increase in statutory family rates 

The weekly amount for statutory family rates (i.e. maternity pay, adoption pay, paternity pay, shared parental pay and maternity allowance) will increase from £145.18 to £148.68.

The government has undertaken to introduce new legislation “at the earliest opportunity” to ensure that any tips left by customers go to workers in full. There is no confirmed date for this change yet but employers should consider formalising a tips policy now. 

In 2018, the Court of Appeal held that individuals working on sleep-in shifts, such as nurses and care workers, would not be entitled to national minimum wage for time spent asleep in scenarios where they were “available for work” and not “actually working”. An application for permission to appeal this decision to the Supreme Court has been lodged and a decision on this is expected later in 2019.  

Under current proposals, bereaved parents will be able to take leave as a single two week period, as two separate periods of one week each, or as a single week. They will have 56 weeks from their child’s death to take leave.

The new right is expected to come into force in April 2020 but employers should start preparing for it during 2019, introducing their own bereavement leave policy if they do not already have one.
 

Lesley Grant
Associate