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Employment Changes in April 2018

Changes to tax legislation and increases to the limits on tribunal awards take effect in April 2018.

The new rules will apply to all terminations of employment where the effective date of termination falls on or after 6 April 2018.

The key changes to note are:

  • All payments in lieu of notice will be subject to income tax and national insurance contributions, whether or not the contract of employment contains a payment in lieu of notice clause;
  • The cap on one week’s pay for calculation of statutory redundancy payments and the unfair dismissal basic award will increase from £489 to £508;
  • The maximum compensatory award for unfair dismissal will increase from £80,541 to £83,682.

In addition, don’t forget that the deadline for submission of gender pay gap reports for all employers with 250 or more employees falls on 4 April 2018. Given that only 1,500 employers have published their reports to date (out of an estimated 9,000 to whom the obligation applies), we can expect to see a flurry of publications in the next few weeks.

For further information on these and other employment law issues please contact beth.hale@cm-murray.com.

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