What’s new in employment law: October 2016

pieniny-1012425_1920Unusually for this time of year, not a lot! Firstly, a quick round up of the employment law changes which came into effect on 1 October 2016:

  • National Minimum Wage (NMW)

The new NMW rates are as follows (with the old rate in brackets):

  • Workers aged 21 to 24: £6.95 per hour (£6.70)
  • Workers aged 18 to 20: £5.55 per hour (£5.30)
  • Young workers aged under 19 but above compulsory school age who are not apprentices: £4.00 per hour (£3.87)
  • Apprenticeship rate: £3.40 per hour (£3.30)
  • National Living Wage

On 1 April 2016, the new National Living Wage of £7.20 an hour for workers aged 25 and over came into force. This rate does not change in October 2016 for those aged 25 and over, which means that the new adult rate of £6.95 will only apply to workers aged 21 to 24 inclusive from that date. From April 2017 all national minimum wage rates, including the national living wage, will be increased at the same time.

There is not much else to report at the present time since various proposals which were expected to come into force on or after 1 October 2016 have been postponed including the gender pay gap reporting regulations and the reforms to public sector exit payments. The draft Regulations on public sector exit payments have been published, which will impose a limit of £95,000 on the exit payments for most public sector workers, but the Government has yet to respond to the consultation on these Regulations. The Government’s consultation on extending shared parental leave and pay to working grandparents, which it proposed to implement by 2018, has also been delayed. We will keep you updated.

For further information please contact Helen Kay on or .

HMK Legal - straightforward affordable employment law advice