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Employment Law - Things to watch in 2016

Four areas of interest for 2016 are holiday pay, gender pay gap reporting, the National Living Wage and Tribunal fees. Here, we have a quick round up of each

  1. Holiday Pay
Holiday pay has continued to cause problems for employers in 2015. As previously reported in our newsletters there have been a number of key cases.  In particular in Fulton v Bear Scotland the Employment Appeals Tribunal had to decide how payments such as overtime should be treated for the purposes of calculating holiday pay. It held that there should be an intrinsic link between remuneration and the work a worker is required to carry out. It also held that in order to bring an unlawful deductions claim based on historic deductions underpaid holiday pay cannot be claimed where more than three months has elapsed between deductions (s 23(2) and s 23(3) ERA 1996).

What does this mean?

For the time being, the decision in Fulton is good law so where there is a gap exceeding three months between deductions of holiday pay, a worker cannot bring an unlawful deductions claim based on historic deductions.

2. Gender Pay Gap Reporting

The provisional deadline for the introduction of gender pay gap reporting regulations is 26 March 2016. These will be introduced under section 78 of the Equality Act 2010 and will require employers with at least 250 employees to publish information about their gender pay gap. The government has stated that it intends that bonus information should be included in the disclosure obligations.

What does this mean?

In advance of the publication of the regulations, companies should be carrying out pay audits to ensure that there is parity of treatment between male and female staff.

3. National Living Wage

National Living Wage (NLW) rates will be debated in Parliament with a view to coming into force on 1 April 2016. The government has also announced a package of measures to ensure compliance with the NLW (e.g. doubling the penalties for non-payment and potential disqualification for directors). The NLW will be implemented through the National Minimum Wage Regulations.

What does this mean?

From April 2016 the NLW will be £7.20 an hour for workers aged 25 and over, increasing to £9 an hour by 2020. Employers should ensure that all staff are on that rate by April 2016.

4. Employment Tribunal Fees

UNISON’s legal challenge against fee-charging in employment and employment appeal tribunals may not have succeeded in the Court of Appeal but the issue of employment tribunal fees rumbles on. The government is in the process of carrying out a review of employment tribunal fees; in particular focusing on whether the charging of fees still maintains fair access to justice. Separately, UNISON has appealed to the Supreme Court against the Court of Appeal’s dismissal of its case. The Justice Committee is also conducting an inquiry into the effects of court and tribunal fees.

What does this mean?

Watch this space!

Posted on 02/01/2016 by Ortolan

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