Changes to Employment Law

in April 2018

New statutory rates

Statutory maternity pay (SMP), statutory paternity pay (SPP), statutory shared parental pay (ShPP) and statutory adoption pay (SAP) – Entitlement rise to £145.18 from £140.98

Statutory Sick Pay – Increase to £92.05 a week from £89.25. The earnings boundary has also increased to £116 a week, which in part determines an employee’s entitlement to SPP.

Other new rates

Pension auto-enrolment –  Employees and employers will now have to contribute a combined 5% of an individual’s overall earnings. Employers must contribute 2% with employees contributing to the remaining 3% through automatic wage deductions. Failure to do this could result in government fines.

Redundancy pay – Increase to £508 from £489, for the maximum amount of a week’s pay for calculating statutory redundancy pay.

Tribunal awards – Increase to £98,922 from £95,211, the maximum award for an unfair dismissal, including the maximum basic compensatory award. Employers are also facing a growing threat of employment tribunal claims with the removal of fees last year.

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