Employment Law changes in April 2018

Minimum Wage Increase

• The National Minimum Wage (Amendment) Regulations 2018 was laid before parliament on 16th February 2018.
• The amendments include an annual increase in the minimum wage and the national living wage.
• Workers aged 25 years or older will receive the national minimum wage of £7.83 (previously £7.50)
• Workers aged between 21 – 24 will receive a national minimum wage of £7.38 (previously £7.05)
• Workers who are aged between 18-20 will receive £5.90 (previously £5.60)
• Those aged under 18 will receive £4.20 (previously £4.05)
• The apprenticeship rate also increases from £3.50 to £3.70
• The amendments will come into force on 1st April 2018

New Compensation Limits

• The Employment Rights (Increased of Limits) Order 2018 has been introduced and aims to increase compensation limits and minimum awards that are payable under employment legislation.
• The amount of award for unlawful inducement relating to trade union membership or activities and unlawful inducement in relation to collective bargaining will rise from £3,907 to £4,509.
• The limit on the compensatory award for unfair dismissal will increase by £3141 from £80,541 to £83,682.
• The guaranteed payment amount that is payable to an employee will rise from £27 to £28.
• The amount of a week’s pay for purposes such as redundancy payments and the basic award for unfair dismissal will increase from £489 to £508.
• These increases are due to take place on Friday 6th of April 2018.