This year brings into play new laws directly affecting HR, and changes to existing employment laws, as the Government update their policies. It’s important that employers, HR teams and all managers are aware of these changes and how they may impact staffing and workplace procedures. Here’s five of the most important changes to familiarise yourself with as we head into 2016.
The National Living Wage
From April this year employers will be required by law to pay the national living wage of £7.20 an hour to employees over the age of 25 (the current minimum wage is £6.70 an hour for those over 21). The Living Wage Foundation estimate the true living wage to currently be £8.25, however the Government’s decision to introduce this increase is part of their ambition to raise the national minimum wage to £9 an hour by 2020.
Gender Pay Reporting
By March it will be compulsory for organisations with more than 250 employees to report on and publish the difference between the pay of men and women within their organisation – and this includes the difference between bonuses. The average pay gap between men and women is currently just over 19% and companies currently only voluntarily offer over this pay gap data. Campaigners are keen to have this information available to employees and to trade unions, but the details of this legislation are still being finalised, so keep a look out for further updates.
Parental and sick pay frozen
Normally each year will see a rise in the weekly rate of statutory maternity pay, statutory paternity pay, statutory adoption pay and statutory shared parental pay, however in 2016 a fall in the consumer prices index means there will be no increase and pay rates are frozen from last year. Sick pay will also remain at the same level as 2015.
Trade Union Law Amended
2016 sees amendments to the Trade Union Bill, introducing more strict procedures with the aim of minimising unnecessary threats of industrial action. The measure includes increasing the voting threshold, setting a four-month time limit for industrial action and increasing the amount of notice to be given to an employer of strike action.
Updated Laws for Employing Foreign Workers
With the aim of tackling illegal working, the Immigration Bill has been updated and now makes illegal working an offence. Also any public-facing public-sector workers must speak fluent English and employers employing foreign workers may now be charged an immigration skills fee.
For more indepth details about changes to employment law this year and further ahead visit gov.uk and keep an eye out for updated news and articles from us here at Langley James.
