April 2013 Employment Law Changes

March 2013

Many employment law changes anticipated for April 2013 have now been postponed until summer and autumn 2013. However, April still looks set to be a busy month for changes to employment law.

Redundancy

As of 6 April, reforms to collective redundancy will be implemented, reducing the 90-day minimum consultation period to 45 days for collective redundancy consultation involving 100 or more employees. As of the same date, fixed-term contracts that have reached their agreed termination date will be excluded from the collective consultation requirement.

Statutory benefits increases

• The standard rate of statutory sick pay increases from £85.85 to £86.70 per week, with the weekly earnings threshold for these payments rising from £107 to £109. This new rate is effective as of 6 April 2013.

• The rate of statutory maternity pay, ordinary and additional statutory paternity pay and statutory adoption pay increases from £135.45 to £136.78 per week, with the weekly earnings threshold for these payments rising from £107 to £109. These new rates are effective as of 7 April 2013.

Pensions

Earnings thresholds for pensions auto-enrolment will change on 6 April 2013 as follows:

• the lower level of qualifying earnings increases to £5,668; 

• the earnings trigger for auto-enrolment increases to £9,440; and

• the upper level of qualifying earnings decreases to £41,450.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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