EMPLOYMENT RATES - 20.04.2018

Are you paying what’s due?

What are these rates for? They are the statutory rates payable under the Employment Rights Act 1996 in England, Scotland and Wales and the Employment Rights (Northern Ireland) Order 1996 in Northern Ireland. They relate to the maximum value of a week’s pay for calculating statutory redundancy payments; the basic and compensatory awards for unfair dismissal; and the limit on guarantee payments made when employees are not provided with work (short time working or being laid off).

When do they change? Until 2018 the rates have changed on different dates; 1 February in Northern Ireland and 6 April in the rest of the UK. New Northern Ireland regulations laid just in time on 5 April 2018 ( the Employment Act (Northern Ireland) 2016 (Commencement No. 2) Order (Northern Ireland) 2018) have brought Northern Ireland into line with the rest of the UK with a consistent date of 6 April annually. The rates did not change in 2017 in Northern Ireland. Even though the date is consistent some of the figures are not, due to different rounding.

Pro advice. Ensure your internal spreadsheets are updated with the new rates to ensure the correct amounts are paid following termination/lay-off. If you have employees based in Northern Ireland you need a different set of policies relating to redundancy and guarantee pay as the rates are not the same.