Employment Law Update – 2016

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National living wage

The new National Living Wage of £7.20 per hour applies to workers age 25 and over from 1 April 2016.

National minimum wage

The rates will increase on 1 October 2016:

  • Standard adult rate for workers aged 21 and over – £6.95
  • Development rate for those aged 18-20 – £5.55
  • Young workers rate for those aged 16-17 – £4.00
  • Apprentice rate – £3.40

The financial penalty has been doubled for those employers who underpay the national minimum wage – it increases from 100% to 200% of the total underpayment owed to each worker.

Statutory payments

Statutory rates of maternity allowance and statutory maternity pay (SMP), statutory paternity pay (SPP), statutory adoption pay (SAP) and statutory sick pay (SPP) are usually increased in April each year, but remain unchanged this year.

Zero hour contracts

Regulations giving zero hours workers the right not to be unfairly dismissed or subjected to a detriment for failing to comply with an exclusivity clause (i.e. to only carry out work for the one employer) and to claim compensation – came into force on 11 January 2016.

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