Rates updates from April 2019

Rates updates from April 2019

It's that time of the year again where employers need to get to grips with new minimum entitlements for their staff. This year, there are a few extra increases and requirements to be aware of.

Wages

The national minimum wage rates for the five categories of workers increased on 1 April 2019. The new rates are as follows:

  • 25 and over – £8.21
  • 21 to 24 – £7.70
  • 18 to 20 – £6.15
  • Under 18 – £4.35
  • Apprentice – £3.90

There is also a new requirement to provide workers with itemised payslips from 6 April 2019. These payslips will also need to itemise the number of hours paid for where a worker is paid by reference to an hourly rate.

Statutory pay

Certain statutory payments have also increased, namely:

  • Maternity, adoption, paternity and shared parental pay – this has increased to £148.68 per week from 7 April 2019
  • Sick pay – this has increased to £94.25 per week from 6 April 2019.

Tribunal awards

Each year, the compensation limits on certain payments that can be awarded by the employment tribunal increases in line with RPI (3.3%). The new rates to be aware of are as follows:

  • Cap on 1 weeks' pay: £525
  • Cap on compensatory award for unfair dismissal: £86,444
  • Minimum basic award for unfair dismissals arising from trade union membership, health and safety duties, pension scheme trustee duties or acting as an employee/workforce rep: £6,408

The maximum awards for injury to feelings (applicable in cases of discrimination) which are referred to as "Vento" bands, have increased as follows:

  • Lower band – £900 – £8,800
  • Middle band – £8,800 – £26,300
  • Upper band – £26,300 – £44,000

…with the most exceptional cases capable of exceeding £44,000.

Finally, the maximum penalty an employment tribunal may order in respect of an employer's aggravated breach of employment law has increased from £5,000 to £20,000. The increase will apply in respect of breaches of workers' rights that take place on or after 6 April 2019.

If you have any questions about the new rates and limits, please contact Claire, Rachael or Rebecca in our employment team.

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