These are the anticipated employment law changes coming into effect from April and May including small increases in the statutory weekly amount for redundancy payments and tribunal awards, but there are some additional more unusual changes coming in April 2018.

Employment Terms and Conditions

Failure to provide written terms and conditions of employment entitle an employee to claim compensation of between 2 and 4 week’s pay at a new maximum rate of £1,106.00 to £2,212.00 respectively. This will increase from the current rates of £978 to £1956.00. Compensation for failing to provide a contract can only be claimed if your employee has an ancillary claim.

Redundancy calculations

Weekly redundancy rates will increase from the current cap of £489.00 to £508. The basic award for ordinary unfair dismissal is the equivalent to a redundancy payment. The new maximum capped at 20 years is £15,240.00 rising from £14,670.00.

Automatic Unfair Dismissal

The minimum basic award for automatic unfair dismissals including raising health and safety concerns, is increasing from £5,970.00 to £6,203.00. There is no minimum period for claiming automatic unfair dismissal and no upper limit to the compensatory award.

Automatic Unfair Dismissal applies to the dismissal of a Trade Union or Employee Representative; an Occupational Pensions Trustee; and dismissal for a pregnancy related reason, or for taking maternity or paternity leave; or for a reason connected to any form of discrimination, whistleblowing, or in connection with breach of the Working Time Regulations, or for being either a part time employee or working under a fixed term employment contract.  (It also applies to the dismissal of employees taking strike action within the first 12 weeks of strike action, or after 12 weeks if you have not taken “reasonable” steps to end the dispute, or have locked the employees out so that they cannot return to work).

Ordinary Unfair Dismissal

The maximum compensatory award for unfair dismissal based on loss of earnings will be increased from £80,541.00 to £83,682.00.  The compensatory award is calculated based on loss of earnings and annual salary. If your employee earns £40,000.00 per annum then his maximum compensatory award will be capped at £40,000.00. The compensatory award is added to the basic award.

Injury to Feelings

The maximum compensation for Injury to Feelings awarded in discrimination claims has increased from £35,000 to £42,000.00 (although more may be awarded in exceptional cases) since September 2017.  Whilst this upper cap is subject to review every March, there is no indication this will be increased from March 2018.

Statutory Lay Off Pay.

In the event that your employees are laid off or put on short term working they will be entitled to receive a statutory payment of up a maximum of 5 days in any three month period.  The maximum payment has been increased from £26.00 to £27.00 per day.  Failure to make the payment could result in a claim for unlawful deduction of wages.

National Living Wage

This will increase for employees over the age of 25 to £7.83 per hour from 1 April 2018.

The National Minimum wage for those between 21 and 24 will be £7.38, and £5.90 for those between 18 and 20 inclusive.  For those under 18 and over school leaving age the minimum hourly rate will be £4.20.

Apprentices

The new hourly rate for apprentices will be £3.70 whether under 19, or over 19 and in their first year of apprenticeship.

Statutory Sick Pay (SSP)

The weekly rate of SSP increases to £92.05.


If you need some more information in relation to any of the Employment Law Changes provided here or on any other Employment Law matter please contact Darryn Harris or Nick Richardson: call rhw Solicitors in Guildford on 01483 302000 or email guildford@rhw.co.uk