Forthcoming 2019 Legislation

There are a number of changes on the horizon that you need to be aware of. Payslips Two important changes to the Employment Rights Act 1996, affecting payslip information, will come into force on 6 April 2019: Employers must include the total number of hours worked where the pay varies according to the hours worked, for example under variable hours or zero hours contracts. Payslips must be given to ‘workers’ and not just employees. Workers & Zero Hour Contracts However, prior to that, there may be a bigger change to Employment Law as MP Chris Stephens has introduced a Workers (Definition and Rights), Bill. The 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 and if passed could have wide-ranging implications. PILONs & Termination Payments The government’s plans to make any part of a termination payment over the sum of £30,000 subject to employer NICs was due to become law in April 2018. This change will now be applied from April 2019 and will: - Treat all payments in lieu of notice (PILONs) as earnings (subject to tax and class 1 NICs). Effectively, employers will be required to subject to tax an amount equivalent to the employee's basic pay if notice is not worked. This change took effect from 6 April 2018. Subject all termination payments above the £30,000 threshold to class 1A NICs (employer liability only). Subjecting termination payments above the £30,000 to class 1A NICs will be implemented in a National Insurance Contributions Bill to be published in 2018. The change will take effect from 6 April 2019. Permit HM Treasury to vary the £30,000 threshold by regulations. For more information, see Income tax and NICs: treatment of termination payments on the HMRC website. Grandparental Leave A proposal by David Cameron’s 2015 government to introduce grandparental leave through an extension to Shared Parental Leave (SPL) has been put on hold. The delay is due to the present government's decision to carry out an evaluation of SPL, the findings of which are expected to be published early 2019. And finally, on 29 March, at 2300 GMT there’s BREXIT………….
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