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Expected Changes

10 March 2018

Trade Unions - check off provisions

Public authorities will be subject to restrictions in respect of deducting union subscriptions from wages.

30 March 2018

Gender pay gap reporting

Date by which all applicable public authorities must publish their gender pay gap data for the period Friday 31 March 2017. The report must be published on the government website and a searchable UK website that is accessible to employees and the public.

1 April 2018

Increases to National Minimum Wage rates and Living Wage

The National Living Wage will increase from £7.50 to £7.83

National Minimum Wage will increase as follows:

  • Workers aged 21 to 24 — from £7.05 to £7.38
  • Workers aged 18 to 20 — from £5.60 to £5.90
  • Workers aged over compulsory school age under 18 — from £4.05 to £4.20
  • Apprentices — from £3.50 to £3.70

Pension changes — auto enrolment

Various changes to the National Employment Savings Trust (NEST) pension scheme are expected, including allowing participating employers to contractually enrol their employees into the scheme.

Increases to the statutory rates for maternity, paternity, shared parental pay and adoption

Statutory rates for everything other than sick pay will increase from £140.98 to £145.18 or 90% of average earnings if lower. 

4 April 2018

Gender pay gap reporting

Date by which all applicable businesses must publish their gender pay gap data for the period Wednesday 5 April 2017. The report must be published on the government website and a searchable UK website that is accessible to employees and the public.

6 April 2018

Increases in statutory payments and tribunal awards

Statutory sick pay will increase from £89.35 to £90.05.

Increases in statutory payments and tribunal awards

The maximum compensatory award for unfair dismissals taking effect from Friday 6 April 2018 will increase from its current rate of £80,541 to £83,682.

A week’s pay (used to calculate statutory redundancy payments and the basic award in unfair dismissal claims) will also increase from its current rate of £489 (gross) to £508.

Payments received on or after 6 April 2018

Taxation of termination payments

Where an employee receives an ex gratia payment but has not worked their full notice period, it will be deemed to include a payment in lieu of notice which will be assessed by reference to a fixed formula (known as “post-employment notice pay”) and will be subject to tax and Class 1 National Insurance Contributions (NICs).

All other relevant termination payments will continue to benefit from the £30,000 tax exemption.

Contractual payments in lieu of notice will continue to be treated as earnings and will be subject to tax and class 1 NICs.

Foreign Service Relief will no longer be available on termination payments where the employee is a UK tax resident in the year their employment ends.

Published: 13 March 2018


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March 2018