UK Employment law is notorious for being in a constant state of development.
In 2016 we are set to witness a number of key changes:
- 1st April 2016 sees the introduction of a compulsory National Living Wage (NLW) for all working people aged 25 and over and will be set at £7.20 per hour. During his 2015 Budget, George Osborne, Chancellor of the Exchequer, announced that “Britain deserves a pay rise and Britain is getting a pay rise”.
The NLW will be compulsory and the Low Pay Commission (LPC) is to recommend future rises, with the Government aiming for it to reach £9 an hour by 2020.
- 6th April 2016 sees changes to the income tax personal allowance which increases to £11,000, and the higher rate tax threshold also increases to £43,000. These changes were introduced by George Osbourne in his 2015 Budget. The increase to the personal allowance delivers the government’s stated objective to support those on low and middle incomes and to reward work.
- We expect that at some stage in 2016 Employers will be required to publish whether or not there are differences in gender pay. Paying people unequally for equal or similar work has been illegal for over 40 years. The gender pay gap is the difference between men and women’s average salaries which reflects the types of jobs that women tend to enter, and the levels of seniority they progress to.
In 2015 David Cameron, Prime Minister, stated that “opportunity is nothing without equality” as he announced measures to introduce new steps to force larger employers to publish information about their bonuses for men and women and extending the government’s commitment to gender pay gap reporting.
- It was also announced by George Osborne that working grandparents will be able to share parental leave in the future. Although it has not been confirmed when exactly these changes will come into effect, consultations are due to take place this year. According to the government website, evidence suggests that nearly 2 million grandparents have given up work, reduced their hours or have taken time off work to help families who cannot afford childcare costs The new system is set to provide flexibility in working arrangements for grandparents without fear of losing their job.
It is also worth noting that the government have indicated that a referendum on our membership of the European Union (EU) could take place this year. Given the major impact that EU law has had on the area of UK employment law, an EU exit could have enormous implications, not just in respect of employment law as it currently stands, but also upon the development of employment law in the future. We shall be keeping an eye on these developments and will provide further guidance in the future.
Should you require any advice on these developments, or anything else in relation to employment law, please get in touch today.
