October employment law update 2016

As the bi-annual employment law update approaches, what is on the agenda this Autumn and what does that mean for your business and your employees?

1.  National Minimum Wage increase

The National Minimum age will increase for certain age bandings.  These include:

• Workers aged 21-25 years old will see an increase to £6.95 per hour
• Rate for those aged 18-21 years old rises to £5.55 per hour
• Those under 18 years old who are no longer of compulsory school age will see a rise to £4.00 per hour
• Apprentice rates will increase to £3.40 per hour

2.  Employers caught illegally employing foreign workers will face closure

A closure notice will be served to those companies illegally employing foreign workers.  This will prohibit access to the premises for a maximum of 48 hours.  A further order can be made to prohibit access for up to a further 12 months.

3.  Skills charge to be implemented for migrant workers

In a bid to reduce reliance on migrant workers, the Government will impose a visa levy on organisations who sponsor workers outside the European Economic Area.  This is expected to be implemented in April 2017.

4.  Trade Union Law reformed

Changes are to be made to Trade Union Law via the Trade Union Act 2016.  The changes include rules on industrial action, introducing voting thresholds.

5.  Introduction of tax free childcare scheme

In families where both parents work and where each parent earns less than £100k per year and they have a minimum weekly income equivalent to 16 hours at the rate of the National Minimum Wage, the Government will pay 20% of annual childcare costs (capped at £2,000 per child).  This only applies to parents with children who are under 12 years old.

Source: Personnel Today, http://www.personneltoday.com/hr/employment-law-changes-2016-october-and-beyond/