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Upcoming Employment Law Changes

  • by: George Wardroper
  • On: 2, Jan 2019
2 min read

2018 had many changes in employment law, and 2019 will continue this trend. With Brexit expected to send shockwaves through UK laws of all kinds, there will be new rules and regulations to abide by no matter what sector you’re in.

Changes To Employment Law In 2019:

Executive Pay Reporting

From January 1st 2019, any company with more than 250 employees must publish and justify the difference between their chief executive and their average UK worker, annually, with the first reports expected in 2020. This is a welcome move towards transparency and equality between those at the top of the corporate ladder and the employees who are most vital to the day-to-day smooth running of the company.

National Living Wage and National Minimum Wage Will Be Raised

The National Living Wage (for those who are 25 or over) will rise from £7.83 to £8.21 per hour. 

The National Minimum Wage (for those aged under 25), the hourly rates will increase as follows:

  • From £7.38 to £7.70 for those between 21 to 24 year olds
  • from £5.90 to £6.15 for between 18 to 20 year olds
  • from £4.20 to £4.35 for 16 and 17 year olds
  • from 3.70 to £3.90 for apprentices

Brexit

Under the EU Settlement Scheme, EU workers will be able to obtain settled or pre-settled status. This will allow them to live and work in the UK after 31st December 2020. To achieve settled status, EU citizens will be required to have lived continuously in the UK for a period of five years.

If an EU citizen has less than five years’ continuous residence, they will be issued pre-settled status. Brexit has thrown the future of international recruitment into question,

Payslips

As of April 2019, the right to an itemised pay statement will be extended to cover workers. At the time of writing, this right is only afforded to employees.

Changes are also coming to what needs to be shown on the pay statement. Currently, the payslip must include the gross amount of wages or salary, the amounts of any variable elements and any relevant fixed deductions and the purpose for that deduction and the net amount of wages. However, employers will need to state the number of hours for which they are paying the employee on the pay statement in cases where the employee’s wages vary in accordance to how much they have worked. 

The employer must either show the total number of hours worked for which payment is being made or provide the figures for different types of work worked or different rates of pay.

Auto-Enrollment To Pensions Will Increase

In April the minimum amounts for auto-enrollment pension schemes will increase for both employers and employees. Currently, automatic enrollment requirements mean employers must contribute a minimum of 2% of an eligible worker’s pre-tax salary to their pension pot, with the individual contributing 3% themselves. This will increase to 3% and 5% respectively.

Read our guide to working in the EU, and learn how to make yourself more employable.

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