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24 January 2018

 

People services bulletin

 
 
 
 
 

Key dates coming up

 
 
 
 

Wage rates rise

From 1 April 2018, the National Minimum Wage will increase. The rates will be:

  • £7.83 per hour (from £7.50) aged 25 and over
  • £7.38 per hour (from £7.05) aged 21 – 24
  • £5.90 per hour (from £5.60) aged 18 – 20
  • £4.20 per hour (from £4.05) aged 16 -17

The apprentice rate increases from £3.50 to £3.70 per hour.

From 2 April 2018, the rate of statutory maternity pay, statutory paternity pay, statutory adoption pay and statutory shared parental pay increases from £140.98 per week to £145.18 or 90% of the employee’s average weekly earnings, whichever is lower.

 
 
 
 

YEAR: your employment annual retainer

 
 
 
 

Our employment team can help you reduce the time you spend dealing with HR matters and make sure that you comply with an increasingly complex area of law by inviting you to join our YEAR club. Membership offers the following benefits:

  • An initial audit of your HR documentation
  • Update of Staff Handbook and employment contracts
  • Employment advice by phone and email
  • Bespoke letters
  • Discounted rates for face to face advice, training, and co-chairing meetings.
  • Optional legal expenses insurance

For more information please contact Tina Chander or visit our website.

 
 
 
 

New treatment of notice pay

 
 
 
 

Contractual payments in lieu of notice are currently subject to tax and NIC deductions.

In the absence of a contractual right to make a payment in lieu of notice, such a payment is generally regarded as damages for breach of contract, and can be paid without deduction of tax up to the £30,000 threshold.

However, any part of a termination payment paid on or after 6 April 2018, which represents 'post employment notice pay', will not benefit from the current £30,000 exemption.

If an employee is not required to work their full notice (for whatever reason) HMRC will assume that an element of any termination payment includes notice pay and will classify it as 'post employment notice pay' which shall be treated as earnings and subject to tax and NIC deductions.

 
 
 
 

Gender pay gap reporting

 
 
 
 

Only 7% of employers required to publish gender pay details have done so. All companies employing more than 250 people must publish their mean and median gender and bonus pay gap, the proportion of men and women who receive bonuses, and the proportion of men and women in each pay band quartile by 4 April 2018. Please contact us if you need guidance on compiling the required information.

 
 
 
 

Case law update

 
 
 
 
 
 

Morrisons’ liable for data leak

 
 
 
 

A claim by employees of Morrisons’ supermarket, following a major data breach committed by a former employee (since jailed), has been upheld by the High Court. The ruling opens the way for its employees to seek compensation. Although the judge ruled that the supermarket was not directly responsible for the data breach, it was responsible for the actions of a member of staff. This is the first class action to be brought in the UK following a data leak. Morrisons has been given leave to appeal.

 
 
 
 

Outsourced workers fail to seek parity with permanent staff

 
 
 
 

An attempt by a group of employees (represented by IWGB), employed by facilities company Cordant to provide services to London University, to have the university recognised as a ‘joint employer’ has failed. The case went before the Central Arbitration Committee which rejected the claim on the basis that not to do so would effectively give two unions the right to negotiate with two employers over the rights of the same group of workers, potentially leading to ‘chaotic workplace relationships’.

 
 

 

 
 
 

“Like actors and writers who are on and off again in terms of employment, I had a very unstructured life”. (Buzz Aldrin, US astronaut, 1930 - )

 
 
 
 

This bulletin was written by

 
 
 
 
 
 

Suki Harrar

Partner
01926 880717
 suki.harrar@
wrighthassall.co.uk
 
 
 

Tina Chander

Senior Associate

01926 884678
 tina.chander@
wrighthassall.co.uk
 
 
 

Sally Morris

HR Constultant
01926 884653
sally.morris@
wrighthassall.co.uk