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2016 employment law developments


National Living Wage

The National Living Wage is being introduced in April 2016. This introduces a new higher rate under the National Minimum Wage (NMW) legislation for workers aged 25 and over. The initial National Living Wage rate is set at £7.20 per hour. The government’s aim is to increase this to £9.00 per hour by 2020.

From 1 April 2016 the penalty payable by employers who underpay the NMW will also increase from 100% to 200% of the underpayment due to each worker.

Statutory Payments

There will be no increase in statutory maternity pay and other statutory family rights payments for 2016/17. These payments will therefore remain at £139.58 per week. Statutory Sick Pay will likewise remain unchanged at £88.45 per week.

Employment Tribunals Fees Review

We are still waiting for the outcome of the UK government’s review of Employment Tribunal fees. Separately The Scottish government has outlined plans to abolish fees in the Scottish employment tribunals.

Zero Hours Contracts

Exclusivity clauses in zero hours contracts have been unenforceable since May 2015. From 11 January 2016 new Regulations give employees the right not to be unfairly dismissed and employees and workers will have the right not to be subjected to a detriment for failing to comply with an exclusivity clause.

Find out more about Employment Law developments in the message from our General Secretary, Pat Harrington, at:

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