Important employment law changes in 2019
Although employers and HR professionals may have hoped for a quieter 2019, following Brexit, which is currently dominating the news, it seems like employers should brace themselves for yet another busy year of employment law changes.
As an employer, HR professional or owner of the company, are you ready for new labour and employment laws taking effect in 2019?
It is important to gear up your knowledge and keep yourself up-to-date with the latest employment law changes so you can stay compliant. Here are some of the key highlights that we know about so far that may affect your company in 2019.
Minimum Wage Rates Increase – Effective April 2019
One of the most significant changes to employment law changes in 2019 will be the minimum wage increase.
The UK has once again increased its National Minimum Wage (NMW), and National Living Wage (NLW) and both are set to rise in April. As per the employment law changes, the new rates will be:
- NLW for 25 and above will be increased to £8.21/hr
- NMW for employees working in their 21-24 will increase from £7.38 to £ £7.70/hr
- NMW for employees working in their 18-20 will increase from £5.90 to £6.15/hr
- NMW for employees working in their 16-17 will increase from £4.20 to £4.35/hr
- NMW apprentice rate will increase from £3.70 to £3.90/hr
- Statutory sick leaves for employees will rise to £94.25/week
- Statutory paternity, maternity, and shared parental disbursements will rise to £148.68/week
- Accommodation offset for employees will rise to £7.55/day
Payslips – Effective 6 April 2019
Getting access to itemised payslips as a worker is yet another important development in the employment law changes for 2019.
Employers and HR professionals who previously had to worry only about generating payslips for employees and human resources will now have to provide itemised payslips for anyone holding the status of a ‘worker’ in the company.
This significant development in the new employment laws effective from 6th April 2019 is expected to minimise employee manipulation at the hands of employers.
This will further ensure that employers are adhering to new employment laws and regulations set forth by regulatory bodies in the UK.
Position Pay Gap Reporting – Effective 1st January 2019
The companies listed in the UK with 250 employees and beyond will now be required to publish a report highlighting the pay gap between their average UK worker, and their Chief Executive.
As per new employment rules, this activity needs to be done annually.
Auto-enrolment contributions – Effective April 2019
Under the current auto-enrolment pension scheme, employers must contribute two per cent of their total pre-tax salary to their pension fund, while employees have to contribute slightly more than 3% of their total pre-tax salary.
As per new employment laws effective from April 2019, employers can expect to pay a further 1%, and employees a further 2% as taxes.
The Status of EU Nationals – Effective Post Brexit
The status of EU nationals working in the UK is one of the biggest concerns surrounding Brexit. As per the updated policy, and changes made in employment laws for 2019, ’settled’ or ‘temporary‘ are two different statuses individuals can apply for.
If EU workers have already lived in the UK for a minimum of 5 years, then they can apply for a settled status. Anything less than this time period will allow them to live and work in the UK with temporary status.
If you are a business owner looking to hire an HR professional to keep you informed of all the important employment law changes who is ideally suited to your sector, contact us. If you are an HR professional looking for your next challenge, register with us.
Date Posted: January 16th 2019
Posted By: Phil Scott