Employment Law Facts and Figures Guide 2021 - click here to download
- IR35: the changes to off-payroll rules in the private sector postponed in April 2020, are now in force. This shifts responsibility for assessing employment status and operating deductions from the contractor’s personal service company to the end user client, though ‘small’ businesses are exempt. For a summary of the changes, see our article.
- Gender pay gap reporting: Rules on publishing annual payroll data which apply to businesses with 250 or more employees were suspended last year. Employers will need to publish their pay gap data for 2020/2021 by 5 October 2021 to avoid enforcement action.
- National minimum wage: Employers must keep National Minimum Wage records for six years, increased from three years. And the National Living Wage has been extended to all aged 23 or above, previously only those aged 25 or over were entitled.
New rates from 1 April 2021, as follows:
- National Living Wage: £8.91 (extended to 23 and 24 year olds, not just 25 and over)
- 21 – 22 year olds: £8.36
- 18 – 20 year olds: £6.56
- 16 – 17 year olds: £4.62
- Apprentice rate: £4.30 for apprentices aged under 19 and all those in the first year of their apprenticeship.
- Tiny increases to statutory pay:
- Maternity, paternity and shared parental leave rate has increased from £151.20 to £151.97.
- Statutory Sick Pay increases to £96.35 from £95.85.
- Tribunal compensation limits:
- Weekly pay for redundancy and unfair dismissal basic award is now £544
- Statutory cap on unfair dismissal compensation is £89,493 (or annual salary if lower)
If you would like to discuss any of the new changes with a member of our employment team please get in touch on 01689 887887.