UK Employment Law Changes – What Is Coming Into Force in October (and Beyond)?

    View Authors September 2016

    National Minimum Wage

    Increased National Minimum Wage rates will apply from 1 October 2016:

    • For workers aged 21-24, the rate will increase to £6.95 per hour.
    • For workers aged 18-20, the rate will increase to £5.55.
    • For workers aged 16-17, the rate will increase to £4.00.
    • The hourly rate for apprentices will increase to £3.40.

    The rate for the National Living Wage – introduced on 1 April 2016 – remains unchanged at £7.20 per hour for all workers aged 25 and over.

    From April 2017, changes to the National Living Wage and the National Minimum Wage rates will be aligned.

    There are a number of other employment law changes on the horizon:

    • Trade Union Act: Implementation date awaited.
    • Changes to shop workers' Sunday working opt-out rights: Implementation date for the changes (being introduced under the Enterprise Act 2016) awaited.
    • Gender Pay Gap Reporting: The Government Equalities Office has indicated that the final Regulations will be laid before Parliament in the Autumn and will commence in April 2017. The first reporting date will be during April 2018.
    • Limits to the range of employee benefits-in-kind attracting income tax and national insurance contribution advantages when provided as part of salary sacrifice arrangements: Government consultation closes on 19 October. The changes are expected to take effect on 6 April 2017.
    • Apprenticeship Levy: 6 April 2017
    • Changes to the income tax and national insurance contributions treatment of termination payments: April 2018. See our Employment Law Worldview blog for an overview of the changes. Government consultation on the draft legislation closes on 5 October.
    • Extension of Shared Parental Leave and Pay to working grandparents: During 2018