Forthcoming legislation 2018/19
19th September 2018
This timetable outlines the major changes expected to employment legislation in 2018 and 2019. Your Heads HR Consultant will talk to you about what action you need to take, if any, to ensure you are prepared.
October 2018 – Abolition of Childcare voucher scheme
The government has delayed its scrapping of the workplace childcare voucher system, due to close on 5 April 2018, by six months, following a vote in Parliament. The abolition is among changes to be made as part of the rollout of universal credit. The employer-backed vouchers are to be replaced by a new system of tax-free childcare, entitling families to claim up to £2,000 per child.
26th October 2018 – Bill on definition of ‘Worker’
The Bill –Workers (Definition and Rights) Bill– would ban zero hours contracts, except where their use was agreed with the individual’s trade union, and clarify the definition of ‘worker’ in the light of recent case law from the Supreme Court. The bill is due to pass to the second stage in the Parliamentary procedure in October 2018. Private Members’ Bills usually need the backing of the government to become law.
1st January 2019 – Executive pay gap reporting in force
From this date, regulations made under the Companies Act 2006 require UK listed companies with more than 250 UK employees to report annually on the pay gap between their chief executive and their average UK worker. If you’re a school of any kind and your legal entity employs 250 or more people, you must report and publish. You won’t be included in your local education authority’s gender pay gap reporting. For maintained schools in and out of federations, the governing body is responsible for publishing their own gender pay gap reports. Maintained schools may be foundation, community, voluntary, nursery or special schools. The first reports are due in 2020.
29th March 2019 – Brexit
The UK gave notice of its intention to quit the EU on 29 March 2017. There is a two-year timeframe for negotiating the terms of a member state’s departure under the Lisbon Treaty, making 29 March 2019 the UK’s leaving date, although this period can be extended by agreement. Both sides agreed in March 2018 to a transitional phrase, lasting from 29 March 2019 until 31 December 2020.
6th April 2019 – Payslip changes
Two important changes to the Employment Rights Act 1996, affecting pay slip information, will come into force on 6 April:
- Employers must include the total number of hours worked where the pay varies according the hours worked, for example under variable hours or zero hours contracts.
- Payslips must be given to ‘workers’ and not just employees.
April 2019 – Tax on termination payments
The government’s plans to make any part of a termination payment over the sum of £30,000 subject to employer NICs is due to become law on this date. This change was delayed from April 2018 (see ‘Apr 2018 – Taxation of PILONs and termination payments’ above).
Just as a reminder, these changes are in addition to the other significant changes to the legislation relating to the taxation of termination and redundancy payments which came into force on 6th April 2018. The changes specifically impact all payments made in lieu of notice (PILONs) and compensation payments for the loss of contractual benefits. To confuse matters further HMRC are now referring to PILONs as ‘PENPs’(Post-employment Notice Pay) which represent the amount of pay, and/or benefits, that the employee will not receive because their employment was terminated without full, or proper notice being given. Employers who incorrectly classify PILONs (PENPs) as non-taxable, expose themselves to the risk of incurring additional costs, as HMRC will seek to recover not only the unpaid Tax and National Insurance Contributions (NIC), but also penalties and statutory interest.