Expected Labour Law Changes In The United Kingdom

European Union membership

UK to exit the EU: The Brexit negotiation process is scheduled to start at the end of March 2017 and will last 2 years. This is subject to the Supreme Court's decision on whether the Government can proceed without an Act of Parliament, which may cause a delay. The Judgment is expected in January.

Action required: None at present. There will be no immediate change to UK labour law.

Gender pay gap reporting

Introduction of new Regulations: Employers with more than 250 employees in the UK will be required to publish information annually on the gender pay gap.

The new Regulations are expected to come into force on April 5, 2017. The first gender pay gap reports will be due in April 2018.

Action required:

If this applies to you conduct an equal pay audit to identify if there is a gender pay gap and, if so, the reasons for it. Develop a strategy to address any gender pay gap. Salary sacrifice

Limitation of tax benefits on salary sacrifice: The benefits that qualify for tax and national insurance contribution relief when provided via salary sacrifice will be limited to enhanced employer pension contributions, certain childcare benefits, equipment provided under the Cycle to Work Scheme and ultra-low emission cars.

Effective from April 2017.

Action required: Understand the changes and review existing salary sacrifice arrangements to ensure compliance.

Financial Services sector: new Regulations

New rules for employers in the Financial Services sector: Banks and insurers must comply with new regulatory reference rules for all candidates recruited to certain roles, including senior management positions, and those performing Financial Conduct Authority 'controlled functions'.

Effective from March 7, 2017.

Action required:

If applicable, become familiar with the new rules. Ensure that all staff in the affected roles meet the regulatory standards and conduct due diligence on candidates to ensure they are fit and proper. Apprenticeship levy

Employers to pay a new apprenticeship levy: Employers with an annual wages bill of more than £3 million in the UK must pay 0.5% of this bill towards apprenticeship training costs.

Scheduled to come into force in April 2017.

Action required:

Calculate gross pay bill and assess levy liability. Assess current training arrangements and develop a strategy for spending the levy funds. Consider changes to payroll systems and processes to ensure the levy is paid. Minimum wage

Mandatory increases in...