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18/12/2018

2019: a quieter year for employers?

2018 has been a busy year in employment law, from gender pay gap reporting to claims of workplace sexual harassment. Employers might be hoping for a quieter 2019 but there will be a number of issues dominating the headlines throughout the year, not to mention the uncertainty of Brexit.

So what should employers look out for in 2019?

Increase in NMW rates

The 2018 Budget included increases to the National Living Way (NLW) and the National Minimum Wage (NMW) which will take effect in April 2019.

Settled Status for EU nationals

European workers currently living in the UK will be able to apply for settled status in 2019, if they have been living here for 5 years or more, which will allow them to remain indefinitely in the UK following the end of the Brexit transition period in 2021.

Auto-enrolment contributions

From April 2019 the minimum contribution for auto-enrolment pension schemes will increase for both employers and employees. Under the new requirements, employers and employees will have to contribute a minimum of 3% and 5% respectively.

Payslips

From April 2019 the legal right to a payslip will be extended to include those who are recognised as ‘workers’ and it will need to include the total number of hours worked for employees whose wages vary depending on how much time they have worked.

Gender Pay Gap Reporting

Private organisations with 250 or more employees will again be required to publish their gender pay gap figures on 4th April 2019. Although employers will be reporting for the second time, this year will demonstrate whether the efforts to address any significant pay gaps have been successful.

CEO pay gap reporting

Although the first reports are not expected until 2020 business (with more than 250 employees) should be calculating the necessary figures throughout 2019 to show the gap between the total amount paid to their CEO and the average pay for an employee.

There are sure to be other new developments throughout the year, but employers would do well to keep a close eye on these particular topics and put plans in place to ensure their business complies with any new requirements.

For all Employment Law matters contact Hannah Strawbridge on 01484 821 300 or at hannahstrawbridge@eatonsmith.co.uk