April is always a busy month for HR professionals and this month is no different (never mind that we are still in the middle of a pandemic!). Here are some pointers:
- Ensure workers are paid the national living/minimum wage
It is that time of year again! The national living wage increased to £8.91 per hour on 1 April 2021.
Also, the age threshold for the national living wage now applies to 23- and 24-year-old workers from 1 April 2021. Previously, the national living wage applied to those aged 25 and over.
Other rate rises:
Workers aged 21 or 22 – £8.36
Workers aged 18 to 20 – £6.56
Workers aged 16 or 17 – £4.62
- Family friendly and sick pay
Remember that employees on family leave will also have a pay increase – this affects all of those on statutory maternity, adoption, paternity, shared parental and parental bereavement leave. The rate increased to £151.97 from 4 April 2021.
Statutory sick pay has also increased to £96.35 weekly from 6 April 2021.
- Statutory Calculations
Unfair dismissal compensation
The maximum compensatory award for unfair dismissal increases from £88,519 to £89,493 for dismissals that take place on or after 6 April 2021.
The top compensatory award for unfair dismissal has increased from £88,519 to £89,493 where the dismissal takes place on or after 6 April 2021.
In addition, the maximum weekly rate for redundancy purposes has increased to £544 from 6 April 2021.
The IR35 rules come into force in the private sector from 6 April 2021. They try to reduce tax avoidance for contractors employed via personal service companies.
The entity engaging the contractor must determine employment status and therefore whether IR35 applies. If it does, the entity that pays the contractor’s fees is deemed to be their employer for purposes such as tax and NI.
The entity must also provide a status determination statement to both the contractor and the third party which the entity has directly contracted with.
Documents need reviewing now to ensure they are compliant!!