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2017 Employment Law Updates

The Employment & HR team at Napthens solicitors is warning businesses to plan for a series of upcoming changes in the law.

The next 12 months will bring with them a range of important updates to employment law, which many businesses will be obliged to follow.

These include the requirement to publish gender pay gap information, and a charge for those businesses which employ migrant workers.

Kimberley Barrett-St.Vall, partner in the Employment & HR team at regional law firm Napthens, warned: “Businesses already find themselves dealing with a range of red tape and legislation, so more of the same has not been universally welcomed.

“However, these changes are important to be aware of, and can result in fines if they are not followed to the letter.”

The legislation changes include:

  • Gender pay gap reporting – regulations are expected to come into force on April 6, and will oblige employers with 250 or more staff to publish gender pay gap information from a snapshot of their pay information. The first reports must be published no later than April 4, 2018, and should include information on details include the proportion of men and women who receive a bones, and the differences in hourly pay.
  • An apprenticeship levy, also from April 6, which will introduce a levy of 0.5 per cent of a company’s annual PAYE bill if its payroll exceeded £3million.
  • An immigration skills charge, designed to encourage businesses to train resident workers and reduce the burden of immigration costs. Employers will be required to pay £1,000 per year per certain Tier 2 migrant worker from April 2017.
  • New salary sacrifice schemes will be limited to childcare vouchers, cycle to work, pensions and low emission cars from April 2017.

Kimberley added: “These are just a few examples of the kinds of changes which 2017 brings with it.

“It is very important for businesses to consider how these changes will affect them and to communicate them to everyone affected.

“There could also be a potential financial impact on a business, so employers should check with their legal advisers to ensure they are planning ahead properly.”

Kimberley Barret, employment lawyer