Rates updates from April 2019

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Rates updates from April 2019

It’s that time of the year again where employers need to get to grips with new minimum entitlements for their staff. This year, there are a few extra increases and requirements to be aware of.

Wages

The national minimum wage rates for the five categories of workers increased on 1 April 2019. The new rates are as follows:

  • 25 and over – £8.21
  • 21 to 24 – £7.70
  • 18 to 20 – £6.15
  • Under 18 – £4.35
  • Apprentice – £3.90

There is also a new requirement to provide workers with itemised payslips from 6 April 2019. These payslips will also need to itemise the number of hours paid for where a worker is paid by reference to an hourly rate.

Statutory pay

Certain statutory payments have also increased, namely:

  • Maternity, adoption, paternity and shared parental pay – this has increased to £148.68 per week from 7 April 2019
  • Sick pay – this has increased to £94.25 per week from 6 April 2019.

Tribunal awards

Each year, the compensation limits on certain payments that can be awarded by the employment tribunal increases in line with RPI (3.3%). The new rates to be aware of are as follows:

  • Cap on 1 weeks’ pay: £525
  • Cap on compensatory award for unfair dismissal: £86,444
  • Minimum basic award for unfair dismissals arising from trade union membership, health and safety duties, pension scheme trustee duties or acting as an employee/workforce rep: £6,408

The maximum awards for injury to feelings (applicable in cases of discrimination) which are referred to as “Vento” bands, have increased as follows:

  • Lower band – £900 – £8,800
  • Middle band – £8,800 – £26,300
  • Upper band – £26,300 – £44,000

…with the most exceptional cases capable of exceeding £44,000.

Finally, the maximum penalty an employment tribunal may order in respect of an employer’s aggravated breach of employment law has increased from £5,000 to £20,000. The increase will apply in respect of breaches of workers’ rights that take place on or after 6 April 2019.

If you have any questions about the new rates and limits, please contact Claire, Rachael or Rebecca in our employment team.

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