Six key employment law developments in 2016 for employers

The employment team has consulted its crystal ball and sets out the changes we consider will have the greatest impact in 2016. Check out our blogs (https://www.morrlaw.com/category/employment/)  for regular updates as these (and other) changes happen.

Zero hours contracts
From 11 January 2016, following much discussion in the press about the lack of employment law protection for zero hours workers, it is unlawful to dismiss a zero hours employee (or subject a zero hours worker to detrimental treatment) because they have breached an exclusivity clause prohibiting their working elsewhere. These claims do not require any qualifying period of employment.

Senior Managers regime
From 7 March 2016, the senior managers and certification regime will be in force in the finance sector requiring greater accountability of senior managers and improved individual conduct standards.

Gender pay gap reporting
Aiming to ‘end the pay gap in a generation’ the Government will be requiring employers with 250 or more employees to publish information showing gender differences in pay and bonuses.  Further consultation is expected in spring 2016 with regulations in the first half of this year. Large employers should be analysing their pay data now.

National Living Wage
From 1 April 2016, the new national living wage will increase minimum pay of workers aged 25 and over from £6.50 to £7.20 per hour (likely to be around £9 per hour from 2020). The national minimum wage for workers under 25 will be reviewed in October 2016.

Statutory rates of pay
Statutory redundancy pay is likely to increase on 6 April 2016 from its current rate of £475 per week. The current levels of statutory maternity pay, statutory paternity pay, statutory shared parental pay and statutory adoption pay are frozen at £139.58 per week for 2016/17.  Statutory sick pay is frozen at £88.45 per week.

Trade union reform
The controversial Trade Union bill 2015 – 2016 includes:

• 50% threshold for ballot turnout and additional threshold for key public sector services e.g. fire, health and energy
• Greater protection for non striking workers
• Abolishing ban on employment businesses supplying agency workers during a strike.
We are also expecting further case law developments on issues such as holiday pay, collective redundancy consultation and tribunal fees.

Should you have any questions on the issues set out here or other employment law queries contact your usual adviser in the team.

Further details relating to our Employment team can be found here



Although correct at the time of publication, the contents of this newsletter/blog are intended for general information purposes only and shall not be deemed to be, or constitute, legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position.

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