April is set to be a busy month for HR and payroll as new rules and rates are introduced.
As from 1 April 2018, the national minimum wage rates have been increased:
- 16 – 17 year olds: £4.05 to £4.20 per hour;
- 18 – 20 year olds: £5.60 to £5.90 per hour;
- 21 and over: £7.05 to £7.38 per hour;
- 25 and over: £7.50 to £7.83 per hour (National Living Wage); and
- Apprenticeship rate (for apprentices under 19 years old, or over 19 but in the first year of their apprenticeship): £3.50 to £3.70 per hour.
Also, as from 1 April 2018 the rate of statutory payments for employees on maternity, paternity, adoption and shared parental leave has increased from £140.98 to £145.18 per week.
From 6 April 2018, statutory sick pay increases from £89.35 per week to £92.05 per week.
Where dismissal takes effect on or after 6 April 2018, there are increased limits on Employment Tribunal compensation awards:
- The maximum basic award for unfair dismissal increases from £14,670 to £15,240;
- The maximum compensatory award for unfair dismissal increases from £80,541 to £83,682 (or a year’s gross pay if this is lower); and
- The limit on a statutory redundancy payment increases from £14,670 to £15,240.
The three bands of awards on which injury to feelings awards are based are also updated from the same date.
- Lower band range – for less serious cases – increases from £800 – £8,400 to £900 – £8,600;
- Middle band range – for more serious cases – increases from £8,400 – £25,200 to £8,600 – £25,700;
- Upper band range – for the most serious cases – increases from £25,200 – £42,000 to £25,700 – £42,900;
- Exceptional cases may still attract awards over £42,900.
