“It’s hard work keeping up to speed with employment legislation.” explains employment partner Karen Cole. “and there is also uncertainty, as the implications for EU workers are hanging in the balance in the event of a no-deal on Brexit.”
Karen added, “It’s increasingly important to keep on top of the deadlines and make sure you’re facing up to issues that may otherwise pose difficulties later.”
Karen highlights some of the critical issues to watch out for in April.
Itemised payslips
New payslip requirements are set to come into force, requiring itemised calculations for variable pay rates and hours worked. Alongside this, the requirement for payslips will be extended to include workers, not just employees.
The two amendments to the 1996 Employment Rights Act came into force on 6 April 2019. From that date, employees and workers, including those under casual or zero-hours contracts, must receive correctly detailed written, printed or electronic payslips.
The greater transparency is designed to help employees understand their pay and see if they are being paid correctly. It is also hoped that it will make it easier to identify if employers are meeting their obligations under the National Minimum Wage and National Living Wage and that holiday entitlements are correctly applied.
Employment tribunal award limits increase
The Employment Rights (Increase of Limits) Order 2019 also came into force on 6 April 2019, increasing the limits for tribunal awards and other amounts payable under employment legislation for relevant events on or after that date. For example, the maximum level of penalty that an Employment Tribunal can impose on an employer who repeatedly breaches their employment law obligations will increase from £5,000 to £20,000.
Gender Pay Gap Reports
For the second year, organisations with 250 or more employees must publish their annual gender pay gap report to the Government Equalities Office. The deadline for submission for the private sector was 4 April 2019, and it’s expected that these will come under increased scrutiny to see what movements and improvements employers have made towards increased equality.
The Gender Pay Gap Regulations apply to all private, public and voluntary sector organisations with 250 or more employees. They must publish details annually of their gender pay gap for both basic pay and any bonus payments. The information must be published electronically on their website and a dedicated government space.
The aim is to measure differences between the average pay of men and women in an organisation, not just whether men and women are receiving equal pay for equal work. The figures will show the distribution of men and women at different levels across the organisation, highlighting whether an organisation promotes or appoints women into more senior roles or whether men dominate the higher-paid jobs. If so, the organisation will have a gender pay gap, even if men and women are paid equal pay for equal jobs.
Brexit: settled status
And finally, the Brexit debates rumble on in Parliament, and dates and deadlines all appear subject to ongoing negotiations. But, for now, the new date of 13 April will open the door for applications from EU, EEA or Swiss citizens who have notched up five years of continuous residence in the UK to apply for settled status in anticipation of the UK’s eventual departure.
This will enable them to continue living here after the Brexit transition ends. Those who do not meet this requirement can apply for pre-settled status, allowing them to remain until they have accrued enough residency to be granted settled status.
While negotiations continue with the EU, the government has confirmed that if the UK leaves the EU without concluding a deal by the deadline, EU/European Free Trade Association (EFTA) citizens and their family members already in the UK on that date would still be able to stay by applying under broadly the same terms of the current Settlement Scheme but would need to do so by 31 December 2020.
Until employees have been granted settled or non-settled status, employers should check the right to work on all current and prospective employees in the normal way.
This includes the changes introduced in January 2019, which allowed employers to rely on online checks to verify a person’s right to work in the UK. The online right-to-work checking service covers those who hold a biometric residence permit or residence card or status issued under the EU Settlement Scheme as an alternative to viewing their passport or ID card.
Contact Karen Cole today for further advice and information on employment legislation.
Note: This article is not legal advice; it provides information of general interest about current legal issues.