Summary of April employment law changes

April is set to be a busy month for changes to employment law.  From 1st April, a number of changes will come into force and employers are being advised to make sure they are aware of what they are and how they will be affected by them.

Legal aid

For the majority of employment claims in England and Wales, legal aid is set to be removed, apart from where claims are made under the Equality Act 2010.

Real time information

Employers will be required to report PAYE deductions to HM Revenue and Customs before or at the time of paying employees rather than at the end of the year.

Statutory sick pay

The standard rate will increase from £85.85 to £86.70 per week.

Redundancy consultation period

This is being reduced from 90 days to 45 days for collective redundancy when 100 or more employees are affected.

Pensions auto-enrolment

The earnings threshold will see the lower level of qualifying earnings increase to £5,668 and the earnings trigger increase to £9,440.  The upper level of qualifying earnings is set to decrease to £41,450.

Income tax thresholds

The personal allowance will increase from £8,105 to £9,440 while the basic rate will decrease from £34,370 to £32,010.  Also reducing is the additional rate of income tax, from 50% to 45%.

Social security

The lower earnings limit for national insurance contributions will be amended to £109, and the upper to £797.

Income tax and childcare vouchers

£25 will be the maximum weekly amount that can be subject to tax relief where the employer provides childcare vouchers or directly contracted childcare.

Maternity, paternity and adoption pay

The statutory rate will increase from £135.45 to £136.78 per week.

For more information, or advice on any aspect of employment law, contact our Employment team on 01772 258321.