Gender pay gap reporting
Every year, employers with 250 or more employees will have to report data about their gender pay gap, including bonus payments.
They will also have to report on the proportion of male and female employees in different pay quartiles and those who receive bonuses.
Employers in the private sector must base their pay data on staff employed on 5 April each year, (and 31 March for the public sector), commencing April ‘17. Bonus information must be based on the previous 12-month period.
Companies have 12 months to publish the information on their own website and upload it to the Government website area.
Immigration skills charge
Employers that sponsor skilled workers at tier 2 of the immigration points-based system, will have to pay a levy of £1,000 per certificate of sponsorship per year (£364 for small employers / charities). This is due to come into force on 6 April ‘17.
Other changes affecting employers that employ workers under tier 2 are as follows:
• From April 2017, the Government plans to introduce a requirement for workers coming to the UK under tier 2 for certain posts in the education, social care and health sectors, to obtain criminal records certificates from the countries that they have lived in over the last 10 years.
• The tier 2 (general) salary threshold will increase to £30,000 from 6 April ‘17, for migrants who are “experienced workers”.
• Employment law manual: Employing foreign nationals
Apprenticeship levy introduced
The apprenticeship levy will come into effect on 6 April ‘17. The purpose is to fund apprenticeship training. Employers will pay the monthly levy via the PAYE system if they have a pay bill of more than £3 million.
Employers in England that pay the levy will be able to access funding through a digital service. The new system of funding is expected to operate from 1 May ‘17.
Employers that do not pay the levy will also be able to access funding.
Larger public-sector employers will have to meet apprenticeship targets.
National minimum wage increases
From 1 April ‘17, the national minimum wage will increase.
The rate for workers aged 25 and over (the national living wage) increases from £7.20 to £7.50. The rates within the other age bands also increase.
Reform to the intermediaries rules (IR35) [public sector]
Taking effect from April ‘17, the intermediaries rules (IR35) apply where an individual supplies his or her services to a client via an intermediary, for example a personal service company.
If the individual could be regarded as an employee if the intermediary did not exist, the intermediary must make deductions for income tax and national insurance contributions (NICs) on the salary and wages that it pays to the individual.
The public authority will have responsibility for establishing if the intermediaries rules apply and, if they do, making the relevant tax and NI deductions.
Statutory sick pay rates increase
The weekly rate of statutory maternity, paternity, adoption and shared parental pay will increase to £140.98 for pay weeks commencing on or after 2 April ‘17.
The weekly rate of statutory sick pay will increase to £89.35 from 6 April ‘17.
Statutory redundancy pay increases
New limits on employment statutory redundancy pay come into effect on 6 April ‘17.
Employers that dismiss employees for redundancy must pay employees with two years’ service an amount based on the employee’s weekly pay, length of service and age.
The weekly pay is subject to a maximum amount and from 6 April ‘17, this is £489, (increased from £479 previously).
The information contained in this article is for information purposes only and not for the purpose of providing legal advice. You should contact your own legal advisers with respect to any particular issue or problem.