New immigration system
From 1st January 2021 employers wanting to recruit from outside the UK must comply with the new point-based immigration system. EEA nationals arriving in the UK from 1st January must comply with the new rules.
Employers must understand the new system, how it affects them, what process to follow as it differs depending on whether the person arrived in the UK before or after 1st January 2021. Those who arrive after 1st January 2021 will need to comply with the UK post Brexit immigration requirements. European nationals already in the UK will have a grace period until 30th June 2021.
Reviewing contracts for IR35
The IR35 reform rules came into force on 6th April 2020, however the full implementation was delayed due to COVID-19. The new rules will apply to medium and large organisations in the private sector and will affect organisations engaging contractors. There is a duty to determine their status and assessing whether IR35 applies or not. Organisations must review their HR processes and documents to ensure compliance and they have appropriate policies in place.
New National Minimum and Living Wage
New rates come into force from 1st April 2021. The National living wage will be extended to 23 and 24 year olds for the first time.
|
|
Hourly rate |
Percentage increase |
|
National Living Wage |
£8.91 |
2.2% |
|
21-22 years old |
£8.36 |
2% |
|
18-20 years old |
£6.56 |
1.7% |
|
16-17 year old |
£4.62 |
1.5% |
|
Apprentice Rate |
£4.30 |
3.6% |
National Living Wage is different to the UK Living Wage and the London Living Wage calculated by the Living Wage Foundation. Differences include that: the UK Living Wage and the London Living Wage are voluntary pay and agreed with the employee as per the employment contract terms. Living Wage rates for 2020/21 have been announced as £9.50 in the UK and £10.85 in London. The rates for 2020/2021 were announced on Monday 9th November 2020. Employers should implement the rise as soon as possible and within 6 months. All employees should be receiving the new 2020/21 rates by 9th May 2021.
Plan for changes to the Coronavirus Job Retention Scheme (CJRS)
COVID-19 is likely to be present throughout 2021, and so the CJRS has been extended until 30th April 2021. The government announced they will review the scheme late January 2021. The outcome of the review is unknown however there have been calls for an extension to the CJRS until at least the end of June 2021. The government may extend CJRS, look to reintroduce the Job Support Scheme or do something different; further details will follow. In the meantime employers should consider how changes to the scheme will affect their business and need to plan how to respond if and when the scheme ends.
Post Employment Notice Pay
From 6th April 2021 new legislation will come into force on how the employment notice pay is calculated to ensure the payment is fair. This will affect employees where their pay period is calculated in months but the notice period is in weeks. The changes will apply to employees whose employment is terminated or where payment is made on or after 6th April 2021.
Publication of Modern-Day Slavery Statements
With the government’s commitment on slavery and human trafficking, it will be mandatory for organisations to report on certain areas, using a government run reporting service. The duty to publish information will be extended to public sector bodies with a budget of £36m or more.
It is not yet known when the new rules will come into force; further details to follow.
If you have any further questions please contact us on 01455 852028.
