5 Employment Law Changes for October 2016 and Beyond

By Sam Thomas | 3rd October 2016 | 2 min read

Autumn for HR practitioners tends to be busy, and with changes to the National Minimum Wage and Gender Pay reporting, 2016 should be no different.

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1. National Minimum Wage Increases

The National Minimum Wage for workers aged between 21 to 25 rises to £6.95 per hour effective from October 1st. Additionally, the rate for workers aged at least 18 but under 21 is raised to £5.55 per hour; the rate for those aged under 18 who are no longer of compulsory school age goes up to £4.00 per hour; and the apprentice rate increases to £3.40 per hour.

2. Employers Using Foreign Workers Illegally Could Face Closure

Businesses using illegal labour could be slapped with a 48 ban from their own premises or even a complete 12 month closure order in some cases. This comes as an attempt to stop businesses turning a blind eye to illegal working. There’s no confirmed date for this newly-announced legislation to come into effect, but it’s widely expected to be before the end of the financial year.

3. Gender Pay Reporting Introduced

As of October 1st, the UK’s large employees are now required to publish reports on their gender pay gap on an annual basis. The first reports are expected to be available in April, and are expected to help speed up the issue of removing the gender pay gap within the UK’s 7,000 large employers.

4. Tax-free Childcare

Families where both parents work and earn less than £100,000 per year will be eligible for a Government cash injection of 20% of their total childcare costs. This is capped at £2,000 per child, applies to parents with children under 12 and is expected to come into force during early 2016.

5. The Apprenticeship Levy Is Coming

Another one for large employers. The Apprenticeship Levy will require employers to pay into the Levy with a 0.5% contribution of their total payroll. The money gathered via this scheme will be distributed to fund the cost of apprenticeship training and assessment. Expected to come into force on April 6th 2017, the Apprenticeship Levy will require slight amendments to payroll to ensure the 0.5% contribution is correctly calculated.

Managing Employment Law in the Cloud

HR and employment law can be complicated, but with IRIS, it doesn’t have to be. Did you know that IRIS payroll software is regularly updated to help ensure compliance with the latest legislation? Or that we offer HR software for all sizes of businesses? From the industry-leading Cascade HR to the new cloud-based IRIS HR for smaller employers, we’ve got you covered.

IRIS HR includes a number of essential features that will help to comply with employment legislation, reduce your admin and improve how you manage your workforce. If this sounds like something you could use for your business, book yourself a free, no-obligation software demonstration of IRIS HR and see first-hand how employment legislation is managed from the HR experts here at IRIS.

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