New National Minimum Rates announced

Effective from April 2018, the Chancellor Philip Hammond confirmed in his Autumn budget, national minimum wage increases and a new scheme affecting care sector employers who may have underpaid their employees.

New National Minimum Wage Rates

In line with the intention for the national minimum wage to increase to £9 per hour from 2020, it will increase from £7.50 to £7.83, representing a 4.4 percent uplift.  In practical terms, this will mean a pay rise of around £600 per year for a full time worker.

The other rates will increase as follows:

  • Workers aged 21-24 from £7.05 to £7.38 per hour
  • Workers aged 18-20 from £5.60 to £5.90 per hour
  • Workers aged 16-17 from £4.05 to £4.20 per hour
  • Apprentice rate from £3.50 to £3.70 per hour

The Budget was also used to announce a review of the flexibility in the way organisations may use their apprenticeship levy (large companies have been required to pay this levy since April 2017 which they can then use to fund apprenticeships) and a National Retraining Scheme to support worker’s career development.

Care employers advised to correct minimum wage wage under payments

A new scheme to encourage companies in the care sector to make good any minimum wage underpayments was launched on 1st November 2017.

Recent employment tribunal judgements have shifted a focus onto a companies minimum wage obligations in the specific area of sleep-in shifts.  HMRC’s interpretation of the legislation, in common circumstances, requires that all hours of a sleep-in shift attract the minimum wage, regardless of whether the worker is asleep.

In order to soften the impact of these decisions on social care companies, the Social Care Compliance Scheme (SCCS) will see any underpayments corrected but remove the enforcement measures applied to companies that are found to have underpaid their workers. Employers have until the end of 2018 to join up to the scheme.

Committees publish draft bill on gig economy workers

A joint draft bill containing enhanced proctections for gig economy workers has been published by two government committees.

The propsal focuses on giving individuals more certainty about their status by providing an automatic assumption of “worker” status, meaning that it would be for the company to prove otherwise at employment tribunal.  This would also mean that these workers would be entitled to certain employment rights from day one.

Some recommendations from the Taylor Report are also included in the Bill, such as considerations of a higher national minimum wage rate for those on zero hour contracts. The government is yet to provide its full response to the review and this Bill will add more pressure on the government to take action.

If you need any help or guidance on the above, get in touch with HR Revolution.

Give us a call +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

A version of this article first appeared on CIPD HR-inform.

Key Employment Law changes to look out for in 2017

The saying is so true, there are few things in life you can guarantee but death, taxes and employment law changes are among them!!  So we’ve outlined 3 changes that will be coming this year, so make sure you get 2017 off to a flying start by being prepared.

Remember you need to be compliant and there are absolutely no excuses when it comes to employment law, let HR Revolution advise you.

Let’s take a look at the changes you need to pencil in your diary…

Gender pay gap reporting

For the first time, private sector, public sector, and voluntary sector employers with 250+ members of staff will be required to publish information relating to the gender pay gap, and how they are performing in terms of driving forward equality.

At the moment, the exact requirements are still being drafted, though it’s expected that the deadline for the first report will be 4th April 2018, based on data from 2016/2017. We’ll release more guidance on this once it’s available.

Changes to regulations surrounding employment of foreign workers

From April 2017, employers sponsoring foreign workers with a tier 2 visa will have to pay an immigration skills charge of £1,000 per worker. This will be reduced to £364 for small employers and charities.

In addition to this, the minimum annual salary threshold for ‘experienced workers’ applying for a tier 2 visa will be increased to £30,000. If you employ foreign workers, or plan to open up your recruitment channels in the near future? You need to make sure you’re compliant.

National minimum wage and living wage changes to be aligned

The dates for changes to national minimum wage and national minimum wage will be brought into alignment, so the good news here is that there are less dates to keep track of!

From April 2017, the national living wage for staff aged 25 or over will increase to £7.50 per hour.

All things considered, there’s plenty to think about in 2017, and plenty that you need to plan for. And of course, there’s the tricky issue of Brexit…

There’s still a grey area over what we should really expect, though things are likely to become clearer in the coming months. Make sure that you keep an eye on our updates for practical, no-nonsense guidance on what you really need to know.

Do you need help ensuring compliance? Give HR Revolution a call today: +44 203 538 5311 we’d love to help.

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Need HR help, it’s time to admit you’re only human

When many of us think about companies that have made big HR mistakes, we’re quick to jump to the assumption that it’s all the fault of greedy bosses who are more interested in lining their own pockets than doing the right thing by their loyal employees.

Mistakes with administrative processes that result in employees receiving their wages far later than expected? Obviously a ploy so the business can keep hold of their cash for as long as possible and make some interest from your hard earned cash!

Employees forced to give up their holiday entitlement because of a last-minute crisis? Probably a crafty trick concocted to make sure that staff are worked to the bone.

Disgruntled staff who are vocal about their negative experiences at work? Well, there’s no smoke without fire.

We’ve all seen the stories in the press, often sensationalised for the purpose of selling more newspapers, and we’ve made our own judgements about the moral standing of those in charge. Sometimes as in life, it isn’t  black and white.

However, let’s not get too cynical.   This is the reason that legislation exists and as an employer, you have a responsibility to make sure that you’re compliant, that you’re implementing best practices, an employee handbook (download below) would be a good place to start, in making sure that you’re doing everything you can to create an environment that’s fair and nurturing for your employees.

However,  mistakes can and will happen, we are human after all, and even the most dedicated and ethical employers can find themselves facing extremely difficult circumstances.

When your business is growing fast, and you have a million and one things to balance, you can take your eye off the ball. You can overlook important details and you can find yourself facing circumstances that you never imagined, which can put your entire business in jeopardy.

The thing is though, what really matters is what you do next, and how you decide to put things right.

If you are worried there could be an HR nightmare on the horizon, then we want to help. We can assess your current circumstances, and help you to create an action plan that gets things back on track as quickly as possible, with the least amount of fuss.

At HR Revolution we’re just passionate about getting things right, and we understand the challenges that you’re facing. Give us a call today and see how we can help.

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