2017 Employment Law – what you need to know

2018 Employment Law – what you need to know

 3 Jan 2018

There are some significant changes in the employment law in 2018 – some of which are confirmed and others which may be in effect after the UK makes its exit from the EU. It is important for employers to know about these changes, understand how they may affect business and to take steps to ensure they are meeting with legislation. These are some changes in the employment law.

Gender pay gap


This is one of the most important changes to the law and it affects large businesses with 250 or more employees. The gender pay gap has caused a lot of controversy over the years and there are now significant changes being put in place to address this long standing issue. Employers must publish gender pay gaps by April 2018 and this will cover the time period of April 2017 to April 2018. It may seem like a long way off, but employers should start to collate this information soon, so they are prepared to publish this information when the time comes.

Free childcare


It is expected that free childcare for families will increase from 15-30 hours for children of age 3 and 4. This applies to working families and is expected to be in place from September 2017.

Employing foreign workers


As engineering companies tend to employ a lot of foreign workers, this is one worth taking note of as it may affect you. As of April 2017, you will need to pay an immigration skills charge of £1,000, although smaller companies will only pay £364. This is in addition to the current visa application charges.


Apprenticeship levy

If your payroll is £3 million or more, you will be liable to pay an apprenticeship levy of 0.5% from April 2017. Large employers will have access to additional funds for apprenticeships and smaller employers will also be able to access funding, but will not be liable for the apprenticeship levy.

National minimum wage and living wage

Changes to the national minimum wage and living wage will take effect from April 2017. The current rate for 25 year old’s and over is £7.20 and this will increase to £7.50. The 21 to 24 year old age range will increase to £7.05 and 18 to 21 year old’s will increase to £5.60. Employees aged under 18, will have an increase to £4.05. It is important for employer’s to ensure they are adhering to this legislation, as otherwise they could be liable for a fine.
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