Get ready for changes to sick pay and redundancy pay rates

APRIL traditionally heralds the start of a new financial year – and with it a raft of employment law changes.

2019 is no exception, with two important amendments in particular taking effect over the next fortnight which will impact on employers and employees.

At-a-glance, these changes include:

Statutory family-related pay and statutory sick pay increases

Both employers and employees should be aware that from 6 April 2019, the weekly rate of statutory sick pay increases to £94.25.

Also the weekly rate of statutory maternity, paternity, adoption and shared parental pay increases to £148.68 for pay weeks commencing on or after 7 April 2019.

For employers, it is imperative to ensure sure that staff currently on or due to go on maternity, paternity, adoption, shared parental leave and on sick leave are paid the increased statutory minimum rates.

It is also worth undertaking a review of related policies such as sickness and maternity policies to ensure that the correct rates are referred to.

New limits on employment statutory redundancy pay

Also on 6 April, new limits on employment statutory redundancy pay come into force.

As a result employers will need to adjust their statutory redundancy pay calculations to reflect such changes.

Employers that dismiss employees on the basis of redundancy must pay those employees with two years’ service an amount based on the employee’s weekly pay, length of service and age.

The weekly pay is subject to a maximum amount, at present that amount is capped at £508.  From 6 April, the weekly amount increases to £525.

For redundancy dismissals on or after 6 April, employers must ensure that statutory redundancy payments are calculated on the basis of the new maximum weekly amount

Changes to Income tax

Over and above these employment law changes, it’s also worth bearing in mind that also from 6 April, the personal allowance increases from £11,850 to £12,500 and the higher rate threshold from £46,350 to £50,000 – giving everyone a few extra pounds in their wage packets.

Should you have any legal questions or concerns regarding these employment law changes, or any other employment law-related issues, please do not hesitate to contact this article’s author, trainee solicitor Lazuna Ullah, a member of our Employment Law team here at Milners, on 0113 245 0852 or email us at hello@milnerslaw




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