National Living Wage – How are you Coping?
The National Living Wage was introduced on April 1st 2016…how has this affected your business?
Changes to businesses can cause a ripple effect that always comes back to HR. Do you have the correct policies and procedures in place? Have you made sure all your employees are being paid what they are legally entitled to?
From April 1st 2016, the National Living Wage will be introduced meaning that anybody over the age of 25 (and not in the first year of an apprenticeship) must be paid £7.20 per hour.
This small increase of 50p an hour is a much larger one when added to a yearly wage.
Plan NOW for the future…
The government is committed to increasing this National Living Wage each year and is planning to introduce the gender gap reporting regulation in October this year, meaning you will have to report gender pay gap and gender bonus gap on an annual basis.
Also there are new compensation rates from April 2016 as follows:
- The cap on a statutory week’s pay will increase to £479 (from £475).
- The maximum Basic Award for unfair dismissal will rise from £14,250 to £14,370.
- Statutory Redundancy Payments will be capped at a maximum of £14,370.
- Compensatory Awards for unfair dismissal will increase to a maximum of £78,962 (from £78,335) or a year’s gross pay, whichever is lower.
Would your business benefit from entrusting your HR tasks with a professional team?
At HR Protocol, we provide our clients with on-going support, acting as a HR Manager without the commitment or the overheads.
We are your human resource professional and will provide you with bespoke guidance and assistance, as and when you need it.
HR Protocol are here to help – call me on 01476 861884. I also offer a complimentary HR Healthcheck, please just ask.