+44 (0)1233 627 275

Key employment law changes

Updated October 24, 2016

DakotaBlueHRConsulting_Blog_Kent_Key employment law changes.pngAs a business owner, it can often feel like there’s constantly a new piece of legislation on the horizon that you need to make sure that you’re compliant with.

There’s no denying that it can sometimes be tricky and confusing, but the first step is to ensure that you know exactly what’s coming. This means that you can plan your next steps, and make any necessary changes so that your business is compliant.

The following are some areas that you should be aware of in the final quarter of the year:

Increased National Minimum Wage for certain age groups

From 1st October 2016, the National Minimum Wage for those under 25 but at least 21 has risen to £6.95 per hour. For workers who are at least 18 but under 21, the new rate is £5.55. If you employ staff who are under 18 but no longer of compulsory school age, then you’ll have to pay a minimum of £4 per hour. Similarly, the apprenticeship rate increased to £3.40 per hour.

Staff aged 25 and above are unaffected by these changes, and the National Living Wage remains at £7.20 per hour.

The bottom line here is that if you employ younger members of staff, you need to make sure that you’re paying them what they’re legally entitled to.

The Immigration Act 2016

This Act introduced a range of measures to crack down on businesses that employ migrants illegally. Employers who have neglected their duty to stamp out illegal working here in the UK could find that access to their premises is prevented for up to 48 hours. This could potentially be extended to 12 months, if a further order is made. Though there’s no confirmed date for when this will come into force, it’s thought that it will be sooner rather than later.

The government earlier this year also announced its plans to reduce Britain’s reliance on migrant workers and to upskill British workers through a new skills charge. 

The Immigration Skills Charge, is set to be introduced in April 2017 and will be levied on employers that employ migrants in skilled areas. It is set to be at £1,000 per employee per year. This will be reduced for small or charitable organisations to £364.

Exemptions to the charge will mean that it won’t apply to PhD-level jobs and international students switching from student visas to working visas. This is to help to protect and retain the talented workers and students who are vital in helping the economy grow.

If you’re concerned that you may have missed out important checks during your recruitment processes, now’s the time to take action and ensure that you have everything in order.

Sunday shop workers will have extended employment rights

Plans to allow local authorities to extend trading hours on Sundays were recently halted, but through the Enterprise Act 2016, the government will be giving shop workers greater rights when working on the Sabbath. These will include the right to object to working more than their usual hours on Sundays, and for those working in larger shops, a reduction in the notice period for opting out of Sunday working.

The commencement date is still to be announced, though it makes sense for those in the retail industry to start making plans as soon as possible.

Navigating changes to employment law can be tricky, but it’s vitally important that you take the time to ensure that you’re fulfilling your responsibilities.

If you would like to receive our blogs or access our free resources then sign up below:

Full Name
Email *