Employment Law News - November 2016
Natalie Ruane reports on the latest Government announcements on employment law.
1st October is normally the date when employment law legislative changes are introduced. However, this year there was very little announced.
The Gender Pay Gap Regulations which we were expecting to come into force have been pushed back to April 2017.
What did come into force was the annual increase to the National Minimum Wage rates. For workers aged 21-24 this increased to £6.95 per hour. The National Living Wage for workers aged over 25 remains at £7.20 per hour.
HMRC has published draft legislation and has recently undertaken a public consultation in relation to taxing termination payments.
HMRC are looking at this new change to come into force in April 2018.
The main changes are:
- making all pay in lieu of notice payments taxable even if they are non-contractual;
- requiring payment of employer national insurance contributions on sums over £30,000 (these are not currently payable); and
- ensuring payments for injury to feelings are subject to tax (there is currently conflicting cases on this point – but the majority of employers currently pay such compensation tax free).
About the author
Natalie leads the Employment Law & HR team and specialises in education.