Employee Relations, HR, HR Updates

Employment Law Update 2016

With the new financial year, the raft of new employment legislation set out by the government over the last 12 months finally comes into effect. Whilst this year’s updates cover a broad range of matters that won’t be relevant to all of us, you do have a legal obligation to make sure that you are up to date with all the latest changes and ensure they are reflected in your contracts, handbooks and general working practices. Some of the key employment law reforms heading our way are outlined below.

Anti-slavery statements introduced – October 2015

Companies with a total turnover of at least £36 million per year may have to implement anti-slavery statement during 2016, depending on their tax year.

Governments fit for work scheme

Now rolled our across the country.

Statutory Pay

Unlike most other years, April 2016 will see statutory maternity, paternity, shared parental, adoption and sick pay frozen at 2015/16 levels.

NI for Apprentices

From April, employers will no longer have to pay Employer National Insurance Contributions for apprentices under the age of 25.

National Living Wage

Also coming into force in April is the new National Living Wage. This is in effect a premium on top of the existing National Minimum Wage for workers aged 25 and over. The new pay level will initially be set at £7.20 per hour, rising to around £9 per hour by 2020. Hefty fines will be levied for those not adhering to the new minimum pay limits.

National minimum wage penalty increased for those who are found not paying – April 2016.

National Mininum Wage Increases – October 2016

The national minimum wage hourly rate will increase as follows:

Aged at least 21 but under 25: £6.95 (previously £6.70)

Aged at least 18 but under 21: £5.55 (previously £5.30)

Aged 16 or 17: £4.00 (previously £3.87)

Apprentice rate: £3.40 (previously £3.30)

The national living wage, (workers aged 25 and over) will remain at £7.20 per hour.

Gender Pay Gap Reporting – duties commence 30 April 2016

Employers with 250+ employees must publish an annual report.  Details must include the differences in mean and median pay and mean bonus pay between male and female employees, expressed as a percentage. Organisations must publish their first report within 12 months of 30 April 2017. The Government will issue guidance on the Regulations. Advice to businesses is to prepare now, well in advance of the need to publish figures.

Trade Union Bill

The Trade Union Bill reforms the rules on trade union ballots for taking industrial action – implementation date to be confirmed.

Park City will keep you up to date and compliant with all the current legislation and keep you well abreast of future developments within UK employment law.

Tax free element of termination payments – changes expected 2018

Aim was to simplify termination payments but organisations may actually find it more complex in practice.

Other Updates: 

  • Ban on exclusivity clauses in zero hour contracts enforced – January 2016.
  • New rules on regulatory references for financial sector – March 2016
  • Limit on number of employment tribunal postponements came into force – April 2016
  • Employers NIC’s abolished for apprentices under 25 – April 2016

Tax free element of termination payments – changes expected 2018

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Saul HunnaballSaul Hunnaball
15:44 12 Aug 22
We have worked with Park City for our HR and Health and Safety support for many years now and have always received an excellent service.Carley is our Consultant and she is always so helpful, as are... her colleagues when she is unavailable.I would highly recommend Park City.read more
Lea CuttingLea Cutting
08:31 27 Jul 22
Park City have worked with us for many years, advising and guiding us regarding HR and Health & Safety, along with supplying valuable training.We work with many people in several areas of expertise,... Sara Godfrey, Jennie Galione, Ashley Williams, Sam Parcell, Stephanie Devans, Poppy Hayhoe.They build confidence within our company and are always available with support and advice.They provide a consistent, professional, hands-on service, second to none!Thank you from DH Industries Limited.read more
Vikki PringleVikki Pringle
11:12 20 Jul 22
The team at Park City offer us the right level of service needed to confidently run a small business. They keep us up to date with UK policy HR requirements, help us manage any staff changes or... issues and policy documents. The team are informed, friendly and remain professional in my experience.read more
Tracy MeadTracy Mead
07:12 20 Jul 22
The DS Group have been working with Park City now for a number of years and we have found their HR services to be invaluable. The service received is always to the highest professional standards and... they have assisted our business in becoming more efficient and effective in all HR matters.My consultant Sam Parcell is always on hand to help answering any questions quickly and professionally and she offers vital guidance, advice and support to us.We as a company will continue to use Park City’s services for many years to come and we cannot recommend them enough!Tracy Norton-Mead, Operations Director at the DS Group.read more
Katie HerbertKatie Herbert
13:35 07 Jul 22
We have worked with Park City for almost 10 years and have built up a great professional relationship over the years. The team are so friendly and helpful, and nothing is ever too much of an ask for... any of them. Our main HR contact is Carley, who is lovely, and she is very prompt in dealing with any queries we have regarding our 100+ staff. We would highly recommend their services for any local business.read more

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