Spring equinox is always an exciting time for Employment Lawyers! Not only does it hail the usual changes to statutory payments and Tribunal compensation (which wakes us up, if nothing else) but this year, in particular, we can all celebrate the fact that we now have one less hour to spend in self-isolation! Silver linings, my friends, silver linings…
Amid the current crisis, it seems incongruous to focus on the run-of-the-mill changes occurring next month. However, whatever the weather, time marches on, and this E-briefing provides a quick guide to all you need to know.
In January, we advised of:
- amendments to Section 1 Statements of Particulars;
- changes to the calculation of holiday pay;
- removal of Swedish Derogation (relating to pay parity provisions) for Agency Workers;
- introduction of Parental Bereavement Leave;
- extension of the off payroll working rules to private sector organisations; and
- changes to taxation of termination payments.
Save for the extension of the off payroll working rules to medium and large private sector organisations, which has now been delayed until April 2021, these changes will now come into force from April 2020. Please see our January E-briefing for further information.
In addition, please note the following:
National Minimum/Living Wage
On 1 April, the national living wage for workers aged 25 and over increases to £8.72 per hour.
Other national minimum wage rates increase, as follows:
- £8.20 - workers aged 21 to 24;
- £6.45 - workers aged 18 to 20; and
- £4.55 - workers aged 16 or 17.
Statutory Payments
On 6 April, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Maternity Allowance will increase to £151.20 per week.
Statutory Sick Pay will increase to £95.85* per week. [*Note that during the coronavirus outbreak, SSP is payable from the first day of absence.]
Pension
There will be a marginal increase to the lower end of the qualifying earnings threshold, which now rises to £6,240. The earnings upper limit remains at £50,000.
Redundancy payments
On 6 April, a “week’s pay” for the purposes of calculating statutory redundancy payments and the basic award in Tribunal claims rises to £538.
This means that the maximum statutory redundancy payment or basic award that can be paid is £16,140.
Unfair dismissal compensation
The cap on unfair dismissal compensation will rise to the lower of one year’s earnings or £88,519. This means that the most an employee can be awarded for ordinary unfair dismissal claim is £104,659 (including the basic award referred to above).
Injury to feelings compensation
The Vento bands for injury to feelings compensation in discrimination claims have also been increased. For claims issued on or after 6 April 2020, the following will apply:
- lower band - £900 to £9,000
- middle band: £9,000 to £27,000
- upper band: £27,000 to £45,000 (NB: the most serious cases may exceed £45k)
For further information or guidance on any of the above, please contact Prettys Solicitors LLP’s Employment Team on employmentexpert@prettys.co.uk or 01473 232121.
