Employment Highlights 2017
Whilst BREXIT remains high on the agenda, there are a number of employment changes that will have a more immediate effect on UK businesses.
Apprenticeship Levy
This spring, the way in which apprenticeships are funded is changing. Companies with an annual payroll of more than £3m will pay 0.5% into a pot. In return they can access this cash plus 10% top up from the government to spend on apprenticeships each year. If they don’t use it within 18 months, they lose it! The aim is to encourage Companies to create 3 million apprenticeships by 2020. However, research by CIPD (chartered institute of personnel and development) suggests that the levy will be unlikely to encourage employers to use it to set up an apprenticeship scheme for the first time.
Companies with fewer than 50 employees will receive 100% funded training for a 16 to 18 year old apprentice and will receive a cash incentive of £1000. If you are considering recruiting an apprentice, we would be happy to advice you on your obligations.
General Data Protection Regulation (GDPR)
It has been nearly 20 years since the UK’s data protection laws were last updated, in the form of the Data Protection Act 1998. This new legislation (GDPR) is intended to bring data protection into the 21st century. Although it doesn’t come into effect until May 2018, Companies should be preparing now for the changes by carrying out audits of employee personal data to ensure it meets the new GDPR conditions for consent. Conditions for consent include the need for data collection to be valid and fit for purpose and Companies will need to be able to prove that consent has been given.
The GDPR will result in two key changes to the subject access request regime. Firstly, data must be provided free of charge, unless the request is “manifestly unfounded or excessive”, in which case the data controller may charge a reasonable fee or refuse to act on the request. Secondly, and more significantly, the time limit for compliance will change from 40 days to “without undue delay and in any event within one month”. This may result in more claims from employees for non-compliance. If you need any advice on the new regulations, please ask.
Gender pay gap reporting
Starting from April 2017, all employers with 250 or more employees will need to publish stats each year showing how large the pay gap is between their male and female employees. This shows the difference in average pay between all men and women in the workforce. This is different to equal pay for men and women of the same grade doing the same job which has been unlawful since the Equality Act 2010. According to an article in the Guardian (Nov 16), men are still paid vastly more than women. Where men and women are doing the same job, they are usually paid the same, although men still have a slight advantage and earn 1.6% more. The real gap is caused by the scarcity of women in the highest and best paid jobs in oil, gas, technology, engineering and life sciences. Companies will be expected to address any gaps by such initiatives as bringing more women into management and encouraging women to apply for jobs in male dominated sectors such as engineering.
New National Living Wage and New national minimum wage
The national minimum wage will now be reviewed each year at the same time as the national living wage. The new rates from 1st April 2017 are:
21 to 24 – £7.05
18 to 20 year olds – £5.60
Under 18 but over compulsory school age – £4.05
Apprentices under 19 or in 1st year – £3.50
National living wage for those age 25 and over – £7.50
If you need advice on the national minimum or living wage, please get in touch.
Gill Wooldridge
Head of HR Services
Bradley Haynes Solicitors
gill@bradleyhayneslaw.co.uk
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at 16 February 2017. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.