Category Archives: Wages

Government reforms (1): Statutory rates increase

Statutory rates increase
What do we already know? Annually in April the annual increase in statutory pay rates come into effect which are normally increase in line with the consumer price index (CPI). What’s new? The following proposed increases to statutory payments will be effective in April 2019: The weekly rate of: Statutory Sick Pay (SSP) will rise…
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Case update (3): Holiday pay – carry over made easy

holiday pay
Summary:  If a worker doesn’t ask to take their outstanding statutory holiday entitlement before the end of their leave year, can they be prevented from carrying it over to the next? No, unless the employer has ensured “specifically and transparently” that the worker has been given the opportunity to take the leave, held the CJEU…
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Government reforms (1): Budget 2018

budget breakdown
The Chancellor presented this year’s budget at the end of October 2018. Key announcements for HR/employment law are: 1. National living wage and minimum wage increases: The following National Minimum Wage (NMW) rates come into effect in April 2019: 25 years and above (the National Living Wage):  from £7.83 to £8.21 per hour; 21-24 year…
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Government Reforms (3): Top tips for staff

stack of pound coins
The Government has announced plans (available here) to ensure that tips left for workers will go to them in full.  This forms part of its modern ‘Industrial Strategy’ to end exploitative employment practices. While the Government acknowledges that most employers act in good faith, in some sectors evidence points towards poor tipping practices, including excessive…
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Government Reforms (1): Mind the ethnicity pay gap

The Government is consulting on implementing mandatory ethnicity pay reporting.  The consultation, available here, sets out options and asks questions on what ethnicity pay information should be reported, who should be expected to report, and the next steps to be taken. The principle behind the consultation already looks very similar to that of the gender…
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Government reforms (1): National minimum wage – TUPE transferees beware

Statutory rates increase
HMRC have announced changes in how they enforce National Minimum Wage (NMW) penalties against employers involved in TUPE transfers. See the HMRC update here (at page 4). From July 2018, any liability for historic NMW underpayment or any penalties relating to the underpayment will be enforced against the new employer (i.e. the transferee).  This is…
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Case update (1): Holiday pay and voluntary overtime

holiday pay
What do we already know? We updated you in our August 2017 Newsletter Case update (3): Holiday pay and voluntary overtime on the EAT’s decision in Dudley Metropolitan Borough Council v Willetts and Others.  It was decided in this case that payments for voluntary overtime that is normally worked must be included when calculating holiday…
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Government reforms (3): Taxation of termination payments

What do we already know? We’ve updated you previously that the law changed on 6 April 2018 so that all Payments In Lieu of Notice (PILON), whether contractual or non-contractual, are taxable and subject to Class 1 National Insurance Contributions (NICs). For updates see here. What’s new? The HMRC has revised its Employment Income Manual to…
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Government reforms (1): Gender Pay Gap reporting – the aftermath

What do we already know? Private and voluntary sector employers with 250 or more employees were required to publish a gender pay gap report by 4 April 2018. We kept you up to date on these reporting requirements and how our Gender Pay Gap Audit service could help with this. For an overview of the reporting requirements…
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Case update (2): Happy holidays! Pay for term-time workers

holiday pay
We updated you in our recent March 2018 Newsflash Happy holidays! Pay for term-time workers on the EAT’s decision in the case of Brazel v The Harpur Trust.  The EAT decided that holiday pay for term-time workers should be calculated based on the reference period of the 12 weeks prior to the holiday – not…
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