Unpicking the Job Support Scheme

Orchard Employment Law provide answers to some frequently asked questions.

Both Employers and employees have been concerned about the future of jobs once the Furlough scheme ends on the 31st October so it is no surprise that people were eagerly awaiting the announcement of the new job support scheme. 

We bring you answers to some frequently asked questions.

What is the Job Support Scheme in a nutshell?

This scheme will allow employers to reduce staff hours and to claim some monies from the government.

All small and medium businesses will be eligible to use the scheme but large businesses will only be able to claim if they can show that their turnover has reduced as a result of the pandemic.

How many hours must an employee work to be eligible for the scheme?

Under the new scheme the employees work at least at least one third of the employees normal hours. The minimum hour requirement might increase after January 2021.

What will I have to pay as an employer?

As an employer you will be required to pay national insurance and pensions. You will also have to pay 100% of the hours which the employee works.

You will also have to contribute towards the hours which the employee does not work. Your total contribution will vary depending on the percentage of time the employee works. The total minimum contribution from an employer (including hours worked) will be 55% but it could be as much as 80%.

Just as with furlough, it is likely that the employee will be on a reduced salary on the job support scheme.

Can I use the scheme on a new employee?

Employees who been employed on of after the 23rd of September 2020 are eligible for the scheme.

What if the employee has not been furloughed in the past?

There is no requirement for the business to have used furlough in the past or for the employee to have been furloughed before.

Can I rotate staff on the scheme?

Yes, you can rotate staff  on and off the job retention scheme but they must be on the scheme for a minimum of 7 days at a time.

Is there an automatic right to put an employee on the scheme?

No, as this will be a reduction in wages you will need to check your contracts to see whether or not you have the right to reduce pay. If you do not have the right to reduce pay you should negotiate with your staff and have a written agreement for them to be on the scheme. We recommend you take advice on this so as not to end up with a claim against you.

You should also have clear and transparent reasons as to who is put on the scheme and who isn’t. You are still required to follow UK employment laws and this means not discriminating against people.

Will I still be able to make redundancies if I use the scheme?

You will still be able to make redundancies but you cannot use the scheme during the notice period. Employees should receive their full redundancy and notice pay (pre furlough and job support scheme.

Do I have to use the scheme instead of using redundancies or lay off?

No, there is no obligation for an employer to use the job support scheme.

Can we contact you for support?

Yes, we provide advice and support to employers  with all HR and Employment Law matters. You can contact us at www.orchardemploymentlaw.co.uk

The Furlough Scheme Is Ending. What Are My Options?

The government’s Coronavirus Job Retentionsion Grant also known as the Furlough Scheme has been a welcome gift to both employees and employers across the UK. It has meant that businesses have been able to keep staff in jobs which will help some businesses to recover to full health.

The option to have staff return to work on a part-time basis will also be a great resource for many but we know that it is coming to an end in October 2020.

Businesses will need to start thinking about how they rebuild the business in an economic landscape which has changed rapidly over the last 4 months. The goal will be to protect the business so that it can be restored and save some jobs. We will take a look at some options that you may want need to consider:

  • Reduced Hours also known as Short Time Working

In an ideal world business would bounce back in an instance and everyone would return to work on full hours and full pay. If a full quota of staff is not an option for the business you may consider reducing the hours of some or all staff members.

In order to reduce staff hours you must have the contractual right to do so. This would be stated in the Employment, Worker contract or in another document. If you do not have a contract you will need to negotiate  with staff and create a new agreement or agree to amend the existing agreement. This must be done in writing and staff should be made aware of their right to claim redundancy if the reduced hours continue for a period of time. Staff will want assurances that if they are made redundant in the future will be based on their original pay and hours.

Do ensure that you are not acting in a discriminatory way if you are reducing the hours of some staff.

Always seek advice before reducing hours.

  • Lay-off with no or limited pay

Some contracts allow an employer to place an employee on standby without pay. A lot of furlough agreements also sneakily added this right into the contract. With this option staff receive no pay other than guarantee payments of £29 per day for 5 days within a 3 month period. Staff also have the right to request redundancy after a period of time and it is important that the correct procedure is followed. Failure to do this correctly can be very costly to a business.

  • Redundancy

Redundancy is where a role has significantly reduced or disappeared. It is about the role and not the person and so employers must think about placing all those who do a particular role at risk. 

Staff should not be discriminated against and the correct monies should be paid. 

It is worth noting that there is no redundancy pay for staff who have less than 2 years service. They will still be entitled to notice pay and other outstanding payments such as unused holiday. 

For businesses who will be making 20 or more redundancies within a 90 day period. There is a strict procedure which must be followed so employers really need to think ahead. One of the things they need to think about is timing as the process will be a minimum of 30 days for business making between 20 and 99 staff members redundant. For business making over 100 redundancies within a 90 day period there must be a consultation period of at least 45 days.

There will be instances where putting a settlement agreement in place is the best way of protecting the business.

  • Restructure

This is similar to a redundancy. This may be where the role still exists but you may decide that it can be done differently or absorbed into another role. In this instance staff should be consulted and just like any other dismissal they will be entitled to notice pay.

If you would like advice or support with any of the options above or for guidance with any Employment Law or HR matter please feel free to contact us at info@orchardemploymentlaw.co.uk

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Essential Businesses, we haven’t forgotten about you

We love the NHS but we also want to show our appreciation to all of the Keyworker businesses working on the frontline during the coronavirus pandemic which is why we are extending our 20% charity discount to all those Essential Businesses.

Community is one of our core values and we try to add value to the community wherever possible. 

Supporting each other as a community during this time of uncertainty has become even more important, lots of businesses are struggling, individuals are losing jobs and others are literally risking their lives to provide services to the public.

We understand the challenges that you are facing in these unprecedented times. Some of you are recruiting paid staff and or volunteers to meet the demand for your essential service. You might need help with permanent or temporary employment contracts.

Some of your staff are worried about what is happening around them, they are working long hours, homeschooling children, facing abuse from the public and are concerned about loved ones. We want to help you to help them at a time when they may be feeling stressed.

Other businesses may need to furlough staff who are shielding or who you are unable to provide work for and we to give you peace of mind. We want you to be confident that you have done everything right.

Perhaps you need help with covid1 19 frequently asked questions, a contingency plan or you are so busy on the front line that you need help with day to day HR and Employment Law. Whatever the problem, we want to help you find a solution.

We are practising social distancing. We don’t want to put you or others at risk and so we are all working from home. We will still hold your hand (albeit virtually) through your challenges. 

We are using technology to provide clear and uncomplicated support to employers over the phone, via email, video meetings and webinars.

Thank you Essential Businesses for doing your part in our community.

Carers, cleaners, teachers, GP’s, Doctors, Nurses, Transport, Freight, Refuse, food retailers, Veterinary practices, Pharmacies, MOT services, Petrol stations, Funeral directors. 

We salute you all.

Furlough Explained

Many businesses across the UK have been experiencing a downturn in revenue as a result of the worldwide covid19 outbreak and had to make some difficult decisions about staffing levels.

On Friday 20th March 2020 the government announced that they would support businesses and staff by introducing a Coronavirus Retention Scheme. The scheme means that the government will pay up to 80% of an employees salary up to the value of £2,500 if they have been furloughed during the pandemic.

The big question is what is Furlough and how do you do it?

The general rule is that employers have an obligation to provide work for employees (not zero-hours workers) as stated in the employment contract. This means that you are still required to pay your staff for their contractual hours if you send an employee home due to a shortage of work.

However, you will not have to pay employees to stay at home if you have the right to lay-off (also known as furlough) their staff. 

Lay off or furlough is not redundnacy or dismissal and they continue to accrue annual leave and other employment rights during this period. Lay off us usually or reduced pay with a minimum payment of £29 per day for 5 days within a 30 day period. In this instance, the staff will be paid a reduced salary.

Do I have the right to furlough staff?

Employers can furlough staff if they have a contractual right to do so. This is often termed as a lay-off clause in the contract.

If you have a lay-clause you must still follow some rules including:

  • Explain to staff what lay-off means
  • Tell staff of their rights during lay-off
  • Tell staff how long you expect the lay-off to last
  • Tell staff how much pay they will receive.

What if I don’t have a  lay-off clause in the contract?

The Coronavirus Retention Scheme is still subject to current UK Employment Law. This means that if you do not have a lay-off clause contract you will need to negotiate with staff to add an additional lay-off term.

At the moment, many staff are agreeing to the term but you cannot force them to do so.

It is important to note that any amendment to the terms of employment should be done in writing.

Choosing who to furlough

If all staff are not subject to lay-off it is important that you have a clear and transparent selection criteria for who will be laid-off.

Employers should be careful not to discriminate on the against staff on the grounds of 

  • Race
  • Age
  • Gender
  • Sexual Orientation
  • Marital Status
  • Pregnancy or Maternity
  • Religion or belief
  • Disability

We hope that you have found this information useful, Contact us at info@orchardemploymentlaw.co.uk  if you would like advice or help with documentation for furlough or any other HR matter. 

What Do I Need to Know Before Taking on An Unpaid Intern?

As a nation, we are more qualified than ever before. Higher education and apprenticeships have increased and yet employers are still complaining about a skills shortage. 

Whilst qualifications are important, there is no substitute for on the job experience. That is where we learn how to put what we have learnt into practice, it’s also where we build upon our soft skills.

With this in mind, it is not surprising to see more people both young and old wanting to do unpaid internships and work experience.

There are other benefits to employers In addition to a feeling of fulfilling your corporate sense of social responsibility.

Taking on an intern or volunteer can give an employer an opportunity to assess whether their processes are working. This is done by testing whether a person outside of the company can follow your instructions.

It is an opportunity to learn and get fresh ideas from your intern and you may even find a suitable candidate for future employment.

From an Employment Law perspective, there are some do’s and don’ts which are listed below.

 

DO

  1. Ask volunteers, interns and work experience candidates to sign a volunteers agreement. This will set out the level of expectation between you and the volunteer.
  2. Take information from the intern which you may need for health and safety. This includes next of Kin details, Allergy information and Health complications or illnesses.
  3. Give your volunteer lots of support, introduce them to staff and assign a dedicated mentor

 

DON’T

  1. Promise to offer them a job before or during the placement. If you tell an intern that they will get a job they will be entitled to the minimum wage for the duration of the placement.  That being said, you may decide to offer the intern a job once the placement has been completed.
  2. Pay for anything which is not an expense. You can pay for travel but you should be able to show receipts are equal to the payment. If you pay more than the expenses are worth you may find that you are liable for minimum wage for the duration of the placement.
  3. Leave your intern to do work which is unsupervised. Try to remember that they are there to learn and to shadow others.

If you would like advice about hiring an intern or any other Employment Law or HR matter feel free to contact us via our website at http://www.orchardemploymentlaw.co.uk

 

Planning for changes in Employment Law for 2020

2020 is another year of changes to the world of employment law and HR. In this blog, we are talking about some of the changes that we know are already going to happen, and, of course, that much discussed and debated subject that is Brexit.

Written Statement of Terms and Conditions (Contracts)

First up, we have the Written Statement of Terms and Conditions, also known as a Contract.

Currently, an employer has up to eight weeks to supply Terms and Conditions of Employment to all employees who have been continuously employed for more than one month.

From 6th April 2020, all new employees and workers will have the right to a Statement of Written Particulars from their first day of employment. Additional information will also need to be included as part of this new extended right.

Employers will need to prepare for this change during their recruitment process and have the Employment Contract sent to their chosen candidate before ‘day one’ of employment.

Employers will also need to consider who will qualify as a worker, and issue Employment Contracts to employees whilst using a separate template when issuing particulars for workers.

 

Parental Bereavement Leave and Pay

There is currently no law regarding bereavement leave and pay for parents.

The Parental Bereavement (Leave and Pay) Act 2018 is due to come into force in April 2020. However, this has not yet been confirmed.

If it does come into force, parents who suffer the loss of a child under the age of 18 years or a stillbirth after 24 weeks’ of pregnancy, will have the right to two weeks’ bereavement leave and, in some cases, pay.

We have not yet received any details of the new entitlement or those who will qualify and these will be set out in separate regulations.

However, we do know that bereaved parents will be entitled to take this leave in one two-week block or in two separate blocks of one week and that the leave must be taken before the end of a period of at least 56 days beginning with the date of the child’s death.

Bereaved parents who have been continuously employed for a minimum of 26 weeks will also be entitled to receive Statutory Parental Bereavement Pay. Parents with less than 26 weeks’ continuous service will be entitled to take two weeks’ of unpaid leave.

 

Agency Worker Rights

There are three important changes to Agency Worker Rights which will come into effect on 6th April 2020: –

  • Currently, the Agency Worker Regulations 2010 entitles agency workers to receive the same pay and basic working conditions as direct employees once they have completed 12 weeks’ continuous service working in the same role.

Under the Swedish Derogation (sometimes referred to as ‘pay between assignments’ contracts), agency workers are able to agree to a contract which removes this right.

From 6th April 2020, the Swedish Derogation will be abolished and these contracts will no longer be permissible. All agency workers, after 12 weeks’ continuous service, will be entitled to the same rate of pay as their permanent coworkers;

  • From 6th April 2020, all agency workers will be entitled to receive a Key Information Statement which sets out more clearly what their employment relationship is and the terms and conditions with their agency;
  • From 6th April 2020, all agency workers who are considered as employees will be protected from unfair dismissal and/or suffering a detriment if the reasons are in relation to asserting rights linked to The Agency Worker Regulations 2010.

 

Holiday Pay Calculations

The current way to calculate holiday pay can be complicated, especially for those employees with variable hours and variable rates of pay. The current holiday pay reference period is 12 weeks.

From 6th April 2020, this holiday pay reference period will increase to 52 weeks, meaning that employers will need to look at the previous 52 weeks where a worker has worked and received pay (disregarding any weeks when the worker did not work or where no payment was received) in order to calculate the average weekly pay.

 

National Minimum Wage Amounts

National Minimum and Living Wage amounts always change in April of each year and 2020 is no different.

The current rates are as follows: –

Age Rate

25 years and over £8.21

21 to 24 years £7.70

18 to 20 years £6.15

Under 18 years £4.35

Apprentice £3.90

From 6th April 2020, these rates will change, as follows: –

Age Rate

25 years and over £8.72

21 to 24 years £8.20

18 to 20 years £6.45

Under 18 years £4.55

Apprentice £4.15

 

Brexit

First of all, we all know that the UK is due to leave the European Union at midnight on Friday 31st January and when this happens, it is likely to bring about changes to the way the employment law world works, although any changes are unlikely to happen straight away. However, businesses will still need to be prepared.

At the moment, existing legislation and case law still applies and will continue to do so until new legislation is brought in.

Whether or not the UK is able to withdraw from current EU legislation and requirements will, ultimately, depend on the UK’s relationship with the EU and other countries. It is possible that trade agreements with other countries will be based upon some if not all, current EU employment legislation.

Any changes that do come into force will not necessarily be immediate or even significant, for the following reasons: –

  • A lot of EU employment law is based on UK legislation, meaning these will remain in place until amended;
  • Many UK employment rights, such as National Minimum Wage Amounts and unfair dismissal rights, do not arise from EU legislation.
  • In many other cases, UK legislation provides protection which far exceeds the EU minimum, for example, maternity leave and the right to 5.6 weeks’ holiday (EU law states a four-week minimum).
  • Changes to primary legislation need the approval of Parliament, and so the Government at the time of any changes will need to consider whether any amendments are politically favourable.

If you have any questions or queries about anything in this blog, or if there is anything employment law or HR related that you need help with, please get in touch with us by emailing info@orchardemploymentlaw.co.uk 

How hot is too for work? Keeping work going during Summer.

Summer is here and the sun is shining brightly. But it’s still business as usual for all of us and that means knowing how to cope in the hot weather when we still need to be working inside.

We have a few hints and tips for you for dealing with the working environment during the summer months: –

Office temperatures

There is no law for there to be a minimum or maximum working temperature in a workspace (i.e. if it is too cold or too hot to work).

However, during working hours, the temperature in all indoor workspaces must be reasonable. Guidance suggests a minimum of 16ºC (or 13ºC if employees are doing physical work).

There is no guidance for a maximum temperature limit within a workspace but employers must adhere to the laws contained in the Health and Safety at Work Act 1974, including: –

  • keeping the temperature at a comfortable level; and

  • providing clean and fresh air.

Ask your staff to talk to you if they feel the workspace temperature isn’t comfortable.

Dress code

We know that sometimes it’s important for your staff to wear a suit and tie or formal attire for business meetings. But when your staff are simply in the office, allow them to remove these and cool down a bit. Perhaps suggest to staff that they wear natural fibres and light colours to avoid attracting the heat so much.

Ice, ice and more ice

If you have a freezer, keep it stocked with ice cubes and ice lollies for your staff. If you don’t have one, perhaps think about investing in a small one specifically for this reason.

Fresh fruit

Although your staff may still want to munch on cakes and cookies, keep a selection of fruit in the fridge as well, in case they want something fresh and cool instead.

Drinks

Hydration is important for the mind as well as the body. A well-hydrated employee is likely to be more productive. Keep a selection of different fruit juices and squashes in the kitchen for a nice cool, refreshing drink for your staff.

Cool breeze

It might sound counter-productive but instead of having all the windows and doors open, keep them closed, pull the blinds or curtains and put the air conditioning or fan on. The closed windows and doors will prevent the hot air seeping in and the closed blinds or curtains will keep the direct sunlight out.

Outdoor meetings

Instead of holding your staff meetings in a stuffy, uncomfortable office, head into the garden or over to the park instead. Staff will enjoy sitting outside in the sun (or shade) and will appreciate a break from the office.

Picnics

Perhaps think about having a weekly or fortnightly staff picnic outside. This will help boost morale and get staff socialising and relaxing.

Summer hols

Remember that with the summer months also comes the summer holidays for parents. Juggling childcare with work can be a stressful time for parents. Think about allowing staff to work from home or do flexi hours so that they can still work but look after the kids at the same time.

Some businesses start the business day an hour earlier to allow for an earlier finish but be mindful of this if it is not in your contract.

Bring your child to work day(s)

With the above in mind, if you have staff members who have children aged between 8 and 16 years old, why not allow your staff to bring their children into work for a few days throughout the summer holidays? It’s a great way to give some educational, interactive and inspiring experiences to school-aged children, and also takes the pressure off their parents a bit as well.

Get the children involved in simple tasks and keep their minds occupied. But make sure that your insurance covers you when children are in the workplace.

Summer break

Unless it’s essential for business reasons, don’t reject staff holiday requests unless it’s absolutely necessary. Everyone needs a holiday and will always be more productive once they’ve had a break.

If you would like any further tips or guidance on dealing with the working environment during the summer months, drop us an email to info@orchardemploymentlaw.co.uk

Did you know we have over 30 blogs on our website? Visit http://www.orchardemploymentlaw.co.uk to read a few more.

Supporting Staff During Ramadan – Avoiding Discrimination

All staff have the right not to be discriminated against because of a protected characteristic. Religious beliefs are one of the nine protected characteristics recognised in Employment Law under the Equality Act.

An employer could find themselves facing an Employment Tribunal claim if they are seen to have discriminated against a member of staff.  Religious discrimination is the unfair or unfavourable treatment of a person because of their religious beliefs. This can include policies or practices.

To help to avoid discrimination employers can have policies or Equal Opportunities, Bullying Harassment and clear Grievance procedures.

Ramadan is a religious period observed by many Muslims. This year, Ramadan began on 5th May and ends on 4th June.

Ramadan happens every year, in the ninth month of the Islamic calendar. During this 29 or 30 day continuous period, Muslims will not eat or drink anything between sunrise and sunset (known as fasting).

Ramadan is seen as one of the five pillars of Islam. Most Muslims (there are exceptions for the young, the elderly and the sick) will fast between sunrise and sunset and will also partake in prayer, reflection and charity work.

For the majority of Muslims, Ramadan will not have any effect on their day-to-day work. However, others may very well be greatly impacted. Therefore, it is very important that employers give consideration as to how they can assist their employees during Ramadan.

  • Fasting may very well affect the employee in certain ways. They may become a little irritable or slightly tired during the latter parts of the day. Therefore, some understanding from managers and colleagues is helpful.
  • It may be obvious to your other employees that the employee isn’t eating and if they do get a little irritable, which can be natural, why they are not their usual self. Therefore, it would be a good idea to suggest that the employee informs their manager and colleagues that they will be fasting.
  • With the above in mind, the employee may wish to start work earlier in the day and finish earlier, so that they can rest during the latter part of the day at home. The employee may also wish to work from home, and you should consider allowing them to do this.
  • It can also help to hold meetings and undertake more challenging work in the mornings and perform more routine tasks later in the day.
  • Although the employee should still take their breaks, a shorter lunch-break could make it easier for the employee to manage their workload if they wish to take time off to carry out additional prayer or worship.
  • The employee may also wish to use some of their annual leave entitlement during Ramadan, especially during the final ten days, as this is a particularly special time for Muslims.
  • It is a good idea to suggest to colleagues that they should refrain from offering food and drink to those who fast, and also ask other staff to not eat during meetings.
  • It can also be helpful to avoid social events and even full team meetings during Ramadan.

 

Understanding the employee’s experiences and accommodating their particular needs shows great management skills and will also help to ensure that staff perform to the best of their abilities. Putting in place policies that are accommodating to all religious events can also lead to a better mutually trusting relationship with your staff and ultimately lead to higher staff retention, better morale, more effective teams and greater productivity.

If you would like help with policies or training on avoiding discrimination please contact us at http://www.orchardemploymentlaw.co.uk.

We can also assist with HR meetings such a grievances and Employment Tribunal representation for employers.

For all Employment Law or HR matter contact us at http://www.orchardemploymentlaw.co.uk

6 Questions Employers Should Not Ask During an Interview.

It is always important to ask questions of a potential employee. How else will you know if they are the right fit for your business otherwise?

However, you should ensure that your questions don’t delve too deep into the potential employee’s personal details. After all, you don’t want a discrimination case brought against you, even if you did not intend to discriminate.

Therefore, it is important to know what questions are a definite no-no. So, here goes: –

 

  1. Are you married?

 

Any questions about marital status, children or future family plans are simply not permissible.

Such questions are too much of a personal nature and could even be potentially discriminatory. Asking a potential employee if they are married could be seen as trying to determine their sexual orientation and this has absolutely no bearing on whether they have the ability to do carry out the job or not.

  1. Were you born in the UK?

 

Yes, you have a legal obligation to ensure that your employees are eligible to actually work in the UK. But you should not ask questions about their race, religion or native language.

A question of whether or not English is the potential employee’s first language is irrelevant, even if your employees are required to speak fluent English.

If the potential employee can speak and write in English to the standard that you require, and they can provide proof of their legal right to work in the UK, then they may well be the perfect person for your business.

 

  1. How old are you?

This question might seem innocent enough, but there are very few reasons why you need to know a potential employee’s age.

Yes, some businesses require their employees to be a certain age for legal reasons, i.e. to sell alcohol, but otherwise, a potential employee’s age should not affect their ability to carry out the job effectively.

Instead, you can ask the potential employee for their date of birth on a separate Equal Opportunites Form, but remember that the interviewer is not be allowed to see this.

 

  1. How many sick days did you take in your last job?

Questions along the lines of health, sickness or indeed disabilities should always be avoided at all costs.

The only time you may need to ask such questions is if you need to find out if the potential employee might need an assessment to establish their suitability for the job, or to establish whether adjustments need to be made in order to accommodate their needs (e.g. fitting a lift or disabled toilet).

 

  1. Do you have any previous criminal convictions?

Potential employees are not required to advise of any criminal convictions if they have already served their sentence.

Therefore, you should not ask such questions, nor refuse employment because of a previous crime. The only exception to refusing employment is if the position relates to teaching, childminding, financial matters etc.

Remember that criminal records checks can be requested from the Disclosure and Barring Service (DBS) for certain roles (e.g. working with children, healthcare etc). However, these should be requested before the interview stage.

 

  1. Are you a member of a trade union?

The Government website advises that an employer must not use the fact that a potential employee is a member of a trade union for or against them when deciding whether they are suitable for the position or not. This includes not employing them because they are a trade union member, or insisting that they join a trade union before you offer them the job.
The above questions are the big red flag ones that should not be asked of a potential employee during an interview. If you would like any further information on what you can and cannot ask or any other Employment Law query please get in touch via our website at http://www.orchardemploymentlaw.co.uk

Things To Look Out For In 2019

It’s hard to believe that we are already in 2019.

This year, there are a few different changes to legislation that will come into force and which you should be aware of in your business.

There will, of course, be more new laws and other legislative amendments throughout the year, but for now, here is a summary of the changes that we already know about.

 

National Living Wage Will Increase

From April, the UK National Living Wage will increase from £7.83 to £8.21 per hour. This will benefit around 2.4million workers and is an average £690 annual pay rise for full-time employees.

Other National Wage Rate changes are as follows: –

Age Group New Rate Current Rate

25 & Over £8.21 £7.83

21 to 24 £7.70 £7.38

18 to 20 £6.15 £5.90

Under 18 £4.35 £4.20

Apprentice £3.90 £3.70

 

Income Tax Thresholds Will Increase

The tax-free Personal Allowance will increase by another £650 in April to £12,500 – this is the amount you earn before you have to start paying income tax.

This means a basic rate taxpayer will pay £1,205 less tax in 2019-20 than in 2010-11.

And the amount that someone will have to earn before they start paying tax at the Higher Rate Threshold of 40% will increase from £46,350 to £50,000 in April, meaning that there is an additional £730 for people who earn above £50,000.

However, those earning more than £100,000 will not benefit as much, or even at all.

 

National Minimum Wage For Sleep-Ins

Last year, the Court of Appeal decided that people who work sleep-in shifts, i.e. nurses and care workers, are not entitled to the National Minimum Wage for any time that they spend sleeping and are ‘available for work’ but not ‘actually working’.

A request to appeal this decision was lodged with the Supreme Court and a decision is expected in 2019.

 

Pension Contributions

The minimum contributions for auto-enrolment pension schemes will increase for both employers and employees from April.

Current legislation means that employers must contribute a minimum of 2% of an employee’s pre-tax salary, with the employee contributing 3%.

Under the new legislation, employers and employees will now have to contribute a minimum of 3% and 5% respectively.

 

Itemised Payslips

From 6th April, a person’s legal right to receive a payslip will be extended so as to include workers as well as employees, such as contractors and freelancers.

Employers will also be required to include the total number of hours worked on payslips for employees whose wages vary depending on how much time they have worked. The payslip will also need to include the total number of hours worked for variable pay rates.

 

Sick Pay and Statutory Family Pay Rates To Increase

Statutory Family Pay Rates are likely to increase to £148.68 in April. This rate will apply to Maternity Pay, Adoption Pay, Paternity Pay, Shared Parental Pay and Maternity Allowance.

The weekly rate for Statutory Sick Pay is likely to increase to £94.25 from 6th April.

 

Parental Bereavement Leave and Pay

It was confirmed last year that the Government will be introducing a right for bereaved parents to take paid time off work.

Under the current proposals, parents who have suffered a bereavement will be able to take leave as a single two-week period, as two separate periods of one week each, or as a single week.

They will be entitled to take such leave within 56 weeks of their child’s death.

It is expected that this new legislation will come into effect in April 2020, but employers should start preparing for it this year.

Employers may also decide to introduce their own Bereavement Leave Policy if they do not already have one.

 

Further Changes To The Apprenticeship Levy To Support Employers

From April, larger businesses will be able to invest up to 25% of their Apprenticeship Levy into supporting apprentices in their own supply chain.

Further, some employers will only be required to pay half of what they currently pay for apprenticeship training – down from 10% to 5%. The Government will be paying the remaining 95%.

 

The Annual Investment Allowance Will Increase

The Annual Investment Allowance increased from £200,000 to £1million on 1st January 2019. This will end on 31st December 2020 and will help businesses to invest and grow.

In addition to this, from October 2018, businesses are now able to deduct 2% of the cost of any new non-residential structures and buildings from their profits before they pay tax.

 

Post-Brexit Immigration Rules

What are likely to possibly be the most significant changes to occur in 2019 are those relating to the employment of EU nationals, regardless of whether a deal on the UK’s exit from the EU is agreed or not.

Once the UK leaves the EU, free-movement will end. However, it is highly likely that this will be delayed pending legislation to repeal current laws. It will also take time to put into place the practical arrangements necessary to make these changes possible.

The Government has introduced a scheme in which EU workers who are already living in the UK will be able to apply for “settled status”, in order that they will be able to continue to live and work in the UK indefinitely.

However, employers should be aware that, moving forwards, the employment of EU nationals is highly likely to be subject to the same restrictions as those involving the employment of other foreign nationals. Employers will, therefore, need to adapt their recruitment processes as a result.

If you would like any further information on how these changes will affect you and your business, please email us at info@orchardemploymentlaw.co.uk We’d be happy to help.