Employment law changes in April 2018

A summary of the changes to employment law that came into force in April 2018.​

A number of employment law changes came into force in April 2018. These included:

01 April 2018

  • The national living wage (for workers aged 25 and over) increased from £7.50 per hour to £7.83 per hour
  • The standard (adult) rate (for workers aged 21 to 24) rose from £7.05 to £7.38 an hour, and
  • Statutory maternity, adoption, paternity and shared parental pay increased to £145.18 per week.

04 April 2018

  • Large private sector employers (with more than 250 employees) must have published their first gender pay gap reports by this date.

06 April 2018

  • Changes to the tax treatment of termination payments apply where termination occurs on or after 06 April 2018, most notably that all payments in lieu of notice (PILONS) (contractual or non-contractual) are subject to tax and NICs as earnings.
  • Employment tribunal compensation limits increased. The maximum:
    • compensatory award for unfair dismissal rose from £80,541 to £83,682 (note subject to the further cap so that the limit is the lower of £83,682 or 52 weeks’ pay), and
    • amount of a week's pay, used to calculate statutory redundancy payments and various other awards rose from £489 to £508 (further details available).
  • Statutory sick pay increased to £92.05.
  • New guidance applies in respect of Vento bands (for awards for injury to feelings in discrimination cases) for claims presented on or after 06 April 2018: a lower band of £900 to £8,600; a middle band of £8,600 to £25,700; and an upper band of £25,700 to £42,900, with the most exceptional cases capable of exceeding £42,900.

Full details of all anticipated employment law changes are available here.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.