Top 5 Employment Law Changes To Be Aware Of In 2018

We have put together the top five employment law developments that you need to be aware of in 2018 as an employer and business owner. These include GDPR, gender pay gap reporting, minimum wage increases, statutory family pay amounts and Brexit preparations will be underway.

  1. GDPR

As of 25th May 2018, the General Data Protection Regulation will come into effect. This means that all organisations that are EU members, including the United Kingdom, will undertake data audits and policy reviews in the run up to May 2018 to ensure that they are compliant in preparation for 25th May.

Many employers will have to issue updated or new privacy notices to employees and those applying for jobs with them and this will explain what data the employer collects and how they use the personal data that they collect.

Reviews with third-party contracts will also be conducted if data-processing is outsourced; this will be the case for payroll and benefit providers for example, or recruitment and consulting services.

  1. Gender Pay Gap Reporting

Employers within the private and voluntary sector with over 250 employees will need to publish their first gender pay gap report by 4th April 2018; those employers within the public sector employing more than 250 employees will need to have their reports completed by 30th March 2018.

The data in these reports will be based on 2016-2017 and include the differences between male and female employees in mean pay, median pay, mean bonus pay and median bonus pay. The report also needs to cover the proportion of male and female employees, the pay quartiles of the company and the proportion of bonuses received by male and female employees. This report will then be published on the website of the organisation as well as a government website.

  1. Minimum Wage

As of 1st April 2018 the National Living Wage for those you employ aged 25 years and older will increase to the hourly rate of £7.83. Workers aged 21-24 years old will have their National Living Wage raised to £7.38, those between 18 and 20 years old will be raised to £5.90 per hour and those workers aged 18 years old and no longer of compulsory school age will have their wage raised to £4.20 per hour.

National Living Wage for apprenticeships has also been looked at; their hourly salary will be raised to £3.70 per hour and the accommodation offset they receive will increase to £7 per day starting from 1st April 2018.

  1. Statutory Family Pay

From 1st April 2018 the pay rates for statutory family pay rates will increase to £145.18; this will apply to maternity pay, paternity pay, adoption pay and shared parental pay as well as maternity allowance.

  1. Brexit Preparations

There was recent relief from employers and workers when the Government’s initial agreement with the European Commission was announced. The terms included in the agreement protect the rights of EU citizens who currently reside in the UK to live, work or study in the UK following Brexit.

This announcement has provided employers with a huge amount of certainty so they are able to continue developing contingency plans for their business around Brexit; it is important to note that this agreement does not relate to the ability of new EU workers that chose to migrate to the UK for work after Brexit.

Confirmation is still being waited upon in regards to immigration arrangements following the exit from the EU; this is something that employers in sectors where considerable inflows of European workers are relied upon are closely watching for an update.

If you have any concerns about the upcoming employment law developments and how they may affect you and your employees then please do not hesitate to give us a call on 01223 855440; we would be more than happy to get your business in order for these changes.