Changes to payments in lieu of notice on termination
From 6 April, there has been a change in the way that payments in lieu of notice (PILONs) made to employees on termination of their employment should be made. It used to be possible to categorise PILON or rely on its contractual status in such a way that it need not be taxed. However, from now on, if notice is not worked, that part of the termination payment which reflects the basic pay for that notice period must be taxed.
There is a formula set out on the HMRC website to act as a guide, but essentially basic pay is income from employment, not including overtime, bonuses, commission, etc.
Gender pay gap reporting deadline was 4 April for private sector companies with 250 or more employees.
The maximum weekly pay for calculating Statutory Redundancy Pay has increased to £508 from 6 April 2018.
The Statutory Minimum Wage for those 25 and over increased from £7.50 to £7.83 from 1 April 2018.
The rates for statutory maternity, paternity, adoption and shared parental pay increased from £140.98 to £145.18 from 1 April 2018.
Statutory sick pay increased from £89.35 to £92.06 from 6 April.
In addition, from 6 April the maximum employment tribunal award for unfair dismissal has increased to £83,682.
Footnotes to Updates:
Gender Pay Gap Reporting
What can I say? Are the results surprising?
More importantly, what can we do about it? HR is often in the invidious position of being held responsible for people related issues – including pay – and not having the power to do anything about it. Perhaps we can use some of these high-profile revelations to try and influence those who make the financial decisions in the right direction.
SMW and Uniforms.
Don’t forget that, if you require employees to wear a particular item of clothing and this must be provided at their own expense, these work-related costs may take their income below the Statutory Minimum Wage. Be sure to take this into account when calculating pay rates.