It’s that time of year again folks…. This April new employment legislation comes into effect.
Here’s a quick summary of the new legislative changes coming into place this Spring:
- Extensions of IR35 to the Private sector: this one is key if you employ a number of people through PSC (Personal Services Companies – also known as ‘umbrella’ organisations) as IR35 rules prevent contractors who are performing similar roles to employees, and working through PSC, from paying less tax and NICs than if they were permanently employed by these companies. From 6 April 2021, deciding whether IR35 applies becomes the responsibility of all private sector employers that in a tax year have: more than 50 employee; an annual turnover over £10.2 million; a balance sheet worth over £5.1 million.
- Wage rises: Chancellor Rishi Sunak announced on November 2020 that from April 2021, the National Living Wage would rise to £8.91 an hour (an increase of 2.2%) and be extended to 23 and 24 year olds for the first time (previously the NLW applied only to 25 year olds and older). All other NMW rates will increase at the same time in line with Low Pay Commission recommendations.. Other rates also increase.
- Statutory pay rises for maternity, paternity and other parental leave payments: to £151.70 per week
- Gender Pay Gap reporting: Private and voluntary sector employers in England, Wales and Scotland with at least 250 employees are required to publish information about the differences in pay and bonuses between men and women in their workforce, based on a ‘snapshot’ date of 5 April each year. Due to COVID, 2019/20 reports are suspended however companies now have to September 2021 to report 20/21.
For further help and advice on how legislation might affect your business, drop us a line at email@example.com or give us a call on 0203 6277048.
Image: Photo by Flickr – Maia Weinstock. LEGO legal justice team.