Changes to compensation limits and other legislative changes for employers to be aware of this April

3 April, 2019

New compensation limits will come into force from 6 April 2019. The figures apply to dismissals where the effective date of termination is on or after 6 April 2019.

There will be an increase to the limit on:

Unfair Dismissal

The maximum basic award will increased from £15,240 to £15,750

The maximum compensatory award for unfair dismissal will increase from £83,682 to £86,444

A week’s pay calculation

A week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £508 to £525

Statutory payments

With effect from 7 April 2019:

The Statutory sick pay weekly rate will increase from £92.05 to £94.25

Statutory maternity, adoption, paternity and shared parental pay will increase from £145.18 to £148.68

National Minimum Wage rates

These rates have increased with effect from 1 April 2019 as follows:

  • £8.21 per hour (from £7.83) aged 25 and over
  • £7.70 per hour (from £7.38) aged 21 – 24
  • £6.15 per hour (from £5.90) aged 18 – 20
  • £4.35 per hour (from £4.20) aged 16 -17

The apprentice rate increases from £3.70 to £3.90 per hour.

Other legislative changes

  • Aggravated breaches of employment law – The maximum penalty for “aggravated” breaches of employment law will increase significantly from £5,000 to £20,000. At the time of writing the Regulations that will introduce this change are still in draft. Subject to the Regulations being made, this increase will take effect from 6 April 2019.
  • Itemised payslips – From 6 April 2019 the right to itemised payslips will be extended to all workers who will be able to enforce this right at an employment tribunal. In addition, payslips will need to itemise the number of hours paid for where a worker is paid on an hourly rate basis.

 

For more information, please contact Camilla Beamish.  For our updates and the latest employment news, please follow us on Twitter @CrippsEmpLaw