Tag Archive: tribunal rules

April changes to employment law

April 2016 will see a number of important developments in employment law take effect. Here is a round-up:

 

Date What’s new? Relevant legislation
1 April The new National Living Wage (NLW) will apply to workers aged 25 and over at a rate of £7.20 an hour.

The NLW is, in effect, a new band of national minimum wage (NMW). This means that all the existing provisions for determining whether the NMW has been met (including the provisions on which pay and benefits count towards meeting the NMW, and which do not) apply to NLW in the same way.

The Government has published guidance on Calculating the minimum wage.

The penalty for non-payment of the NMW/NLW also increases to 200% of the total underpayment (up from 100%) but, as before, the penalty will be halved if paid within 14 days.

National Minimum Wage (Amendment) Regulations 2016
6 April A new scheme will penalise employers who fail to pay tribunal awards or COT3 settlement sums.   Employers may be issued with a warning notice, and then, if payment is still not made, with a penalty notice.  The penalty, payable to the Secretary of State, is set at 50% of the unpaid sum, subject to a minimum of £100 and maximum of £5,000 (halved  by 50% if the unpaid sum plus penalty are paid within 14 days of the penalty notice). Small Business, Enterprise and Employment Act 2015 (Commencement No 4) Regulations 2016
6 April New tribunal rules, which will apply to cases brought on or after 6 April, will limit each party in a case to 2 postponements; introduce a deadline for postponements of 7 days before the hearing; and require a costs or preparation order to be considered where a successful application for a postponement is made less than 7 days before the hearing. Employment Tribunals (Constitution and Rules of Procedure) (Amendment) Regulations 2016
6 April The maximum compensatory award for unfair dismissal rises from £78,335 to £78,962. The Employment Rights (Increase of Limits) Order 2016
6 April The maximum amount of a week’s pay, used to calculate statutory redundancy payments and various awards including the basic and additional awards for unfair dismissal, rises from £475 to £479. The Employment Rights (Increase of Limits) Order 2016

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