Heads Up – Employment Law Changes in 2019

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Heads Up – Employment Law Changes in 2019

employment law, har advice, hull, hr east yorkshire

Here is the timetable for proposed employment law changes that due to come in to force in 2019, some of these you wont be aware of but may need to plan for, especially if you have hourly paid employees.

1st January 2019 – Regulation on Executive Pay Reporting

  • Quoted companies with more than 250 UK employees are required to include certain pay ratios for the relevant financial year in the directors’ remuneration report. The pay ratios compare the total annual remuneration of the CEO to UK employees whose pay and benefits are on the 25th, 50th and 75th percentiles.
  • Large companies are required to provide a statement as part of their directors’ report, and on their website, as to which corporate governance code or the corporate governance arrangements they applied in the financial year.
  • Companies with more than 250 employees are required to include a statement in the directors’ report on how Directors have engaged with employees and demonstrated they have considered the interests of the employees when making decisions
  • Large companies are required to include a statement in their strategic report setting out how directors have promoted the success of the business. This statement must be visible on the Company’s website. Large companies are also required to include in their directors’ report how they have developed the business and taken on board the interests of customers, suppliers and others when making decisions to promote the business

6th April 2019 – Changes to termination payments

  • Where a termination or settlement payment is in excess of £30k, Company’s will be required to pay Class 1A National Insurance Contributions on the payment as well as Tax.  This most likely to impact redundancy and settlement payments where the first £30k of any compensation payment is classed as free of tax and NI payments.

6th April 2019 – Payslips to show hours worked where pay varies

  • Where an employees wages vary due to hours worked, under Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 (SI 2018/147) employers must show the number of hours worked on the employees pay slip, to allow employees to check the amount they are being paid is correct and to identify any potential under payments.  This right also extends to those classed as workers.

Expected 2020 – Parent Bereavement Leave

  • Under the  Parental Bereavement (Leave and Pay) Bill employees will be allowed to take up to two weeks bereavement leave following the death of child under the age of 18.  If the employee has at least 26 weeks service they will be entitled to receive pay at the statutory rate, Those with less than 26 weeks will have the opportunity to take the leave as unpaid, unless the employees contract states otherwise.