What’s happening with Employment Law in 2019 (aside from Brexit!)

Along with the inevitable changes that will be brought by Brexit there are some other employment law implications for 2019.

Post-Brexit immigration rule changes:

Regardless of whether a deal on the UK’s exit from the EU is agreed, the rules around the employment of EU nationals will change sooner or later. The Government has introduced a scheme under which EU workers already in the UK will be able to apply for “settled status”, to be able to live and work in the UK indefinitely.

However, employers need to be aware that, going forward, the employment of workers from the EU is likely to be subject to restrictions in the same way as the employment of other foreign nationals, so will need to adjust their recruitment processes.

Executive pay reporting:

Rules coming into force on 1 January 2019 mean that UK quoted companies with more than 250 employees will have to report on ratios between the CEO and employees’ pay and benefits.

The requirement applies to financial years beginning on or after 1 January 2019 so the first of reporting will start in 2020.

Extend itemised pay statements to workers:

From 6 April 2019, the right to an itemised pay statement will extend to workers, not just employees. Where a member of staff’s pay varies according to time worked, the employer will have to include on the itemised pay statement the total number of hours worked for which variable pay is received.

Publish second gender pay gap report:

Employers with 250 or more employees on the “snapshot date” (31 March in the public sector and 5 April in the private and voluntary sectors) must report on their percentage gender pay gap annually within 12 months of that date.

This means that the deadlines for the second round of reports are 30 March or 4 April 2019.

Organisations must publish reports on their website and on the GOV.UK website. In the private and voluntary sectors, reports must also be accompanied by a written statement confirming their accuracy, and be signed by a senior person as prescribed by the legislation.

National minimum wage rate increases:

The national living wage is due to increase to £8.21 per hour from 1 April 2019.

Other national minimum wage rates are also due to increase, with hourly rates rising to £7.70 for workers aged at least 21 but under 25, to £6.15 for workers aged at least 18 but under 21 and to £4.35 for workers aged under 18 who are no longer of compulsory school age.

The hourly apprentice rate will increase to £3.90 and the daily accommodation offset will increase to £7.55.

The weekly amount for statutory family pay rates is expected to increase to £148.68 for 2019/20. This rate will apply to maternity pay, adoption pay, paternity pay, shared parental pay and maternity allowance.

The increase normally occurs on the first Sunday in April, which in 2019 is 7 April.

The weekly rate for statutory sick pay is expected to increase to £94.25 from 6 April 2019.