After a very busy few years of legislative changes in the employment law field, it appears that 2016 is not going to bring quite as many changes for us all to keep up with. Nevertheless, there are a few things coming up which it would be wise to monitor closely.

We shall keep you up to date on these matters with our regular legal updates throughout the year.

Holiday pay - the saga continues

The Employment Appeal Tribunal released its judgment in the case of Lock v British Gas a few days ago. The EAT upheld the Tribunal’s earlier decision that Mr Lock’s holiday pay should have included an element of the commission which he would otherwise have earned had he not been on holiday. Notwithstanding this judgment, there remains a number of unanswered questions around the question of how to calculate holiday pay and we will no doubt see further litigation about this topic over the coming months. We will keep you up to date with any further developments.

March 2016 – gender pay gap reporting

The Government has recently published draft regulations setting out the requirement for larger employers (those with 250 or more employees) to publish information on their gender pay gap. The draft regulations are out for consultation until 11 March 2016 and, once finalised, are expected to come into force in October 2016. Further information on the content of the draft regulations can be found here

1 April 2016 - introduction of National Living Wage

The much publicised ‘National Living Wage’ will be implemented from 1 April 2016, meaning that all employees aged 25 or over will be entitled to receive a minimum hourly rate of £7.20. National Minimum Wage rates will therefore be as follows:

  • age 25+ - £7.20ph (the National Living Wage)
  • are 21-25 - £6.70ph
  • age 18-21 - £5.30ph
  • age <18 - £3.87ph
  • apprentices - £3.30ph