It is the time of year which sees the statutory rates for payments such as maternity pay and sick pay increase, as well as the national minimum wage. See here for our pdf setting out these changes.
Employers considering using settlement agreements should also note the changes to the taxation of termination payments. On 6 April 2018, all payments in lieu of notice, even where there is no contractual pay in lieu of notice (PILON) clause, will be subject to income tax and class 1 NICs. Broadly, employers will be required to tax that part of a termination payment equivalent to the employee’s basic pay if and to the extent that notice is not worked.
Employers also need to be aware of gender pay gap reporting with first reports due on 4th April 2018 and GDPR which is due next month in May.