Employment Law Changes from April 2016

The following changes come into force in April 2016: 

1 April

National Living Wage

Workers aged 25 and over will have to be paid the National Living Wage of £7.20 per hour. 

6 April

Tribunal compensation limits

The amount of a week’s pay increases to £479 (up from £475) and the cap on the compensatory award increases to £78,962 (up from £78,335), or 52 weeks' gross pay if lower.  The new limits apply where the effective date of termination is on or after 6 April 2015.

Limits on Tribunal Postponements

For claims issued on or after 6 April, parties will generally be limited to two hearing postponements each.  Applications will generally not be granted if made less than seven day before the hearing and, if granted, the successful party may face a costs order.  Further information on the changes can be found here.  

Financial Penalties for Unpaid Tribunal Awards and Settlements

Employers who fail to pay tribunal awards or settlement sums may be ordered to pay a financial penalty to the Secretary of State.  The penalty is set at 50% of the unpaid sum, subject to a minimum of £100 and a maximum of £5,000, but will reduce by half if both the award/settlement sum and the penalty are paid within 14 days.  

Abolition of contracting out on a salary related basis 

The Government's NIC rebate for contracting out of the state second pension is being removed.  Employers and employees will have to contribute in full.  Click here for further details.