The Employment Rights (Increase of Limits) Order 2018 comes into force on 6 April 2018.

The limit on a week’s pay for calculating a statutory redundancy payment and for various other statutory purposes (e.g. unfair dismissal basic awards) is increased to £508 and the statutory cap on a compensatory award for ordinary unfair dismissal increases to £83,682.

The increased limits apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6th April 2018. Limits previously in force under the Employment Rights (Increase of Limits) Order 2017 are preserved where the relevant event is before 6th April 2018.

Every April, the NMW and national living wage rates change. From 1st April 2018, the following rates will apply:

         £7.83     £7.38 £5.90 £4.20 £3.70

Apprentices are entitled to the apprentice rate if they are either:

  • aged under 19;
  • aged 19 or over and in the first year of their apprenticeship.

Further information can be found on the Government website.

The Government has recently announced new reforms to address the challenges of the changing world of work in the modern economy. In a recent press release it was announced that millions of workers are to get new day-one rights.

The press release explains that the “Good Work plan” comes in response to the independent Taylor Review, published last year, which investigated what impact modern working practices are having on the world of work.  In some cases the government plans to go further than the review’s proposals, including:

  • enforcing vulnerable workers’ holiday and sick pay for the first time;
  • a list of day-one rights including holiday and sick pay entitlements and a new right to a payslip for all workers, including casual and zero-hour workers;
  • a right for all workers (not just zero-hour and agency workers), to request a more stable contract, providing more financial security for those on flexible contracts.

The government also plans to protect workers’ rights by:

  • taking further action to ensure unpaid interns are not doing the job of a worker;
  • introducing a new naming scheme for employers who fail to pay employment tribunal awards;
  • quadrupling to £20,000, employment tribunal fines for employers who show malice, spite or gross oversight.

Various consultations have been issued as these are considered to be complex issues and “the government will consider the impacts of these reforms on business and other groups before implementing changes”.