There will be some major changes expected for employment legislation in 2018, including requirements of reporting on gender pay gaps & restricting employment allowance for illegal workers.
Gender Pay Gap: First Reports
Employers in the private and voluntary sector, with at least 250 employees, will be required to publish the first report regarding information about the differences in pay between their male & female members of staff by 4th April 2018.
Termination Payments: Taxation
This information is particularly important to tax managers, payroll staff, HR staff and finance staff. The government plans to make changes to the taxation of termination payments from April 2018. The proposal includes the following;
• Removal of the distinction between contractual and non-contractual PILONs (payments in lieu of notice) so that all PILONs are taxable and subject to Class 1 NICs (National Insurance Classes).
• The first £30,000 of a termination payment will remain exempt from income and any payment made to any employee that relates solely to the termination of the employment will continue to have an unlimited employee NICs exemption.
• Alignment of the rules for income tax and employer NICs, so employer NICs will be payable on payments above £30,000, which are currently only subject to income tax.
Restricting Employment Allowance: Illegal Workers
From April 2018, employers will be unable to claim the Employment Allowance for one year if they have;
• Hired an illegal worker
• Been penalised by the Home Office
• Exhausted all appeal rights against the penalisation.
These new plans come as a result of the Government wanting to further deter employers from hiring illegal workers.
General Data Protection Regulation
Implementation of the General Data Protection Regulation (GDPR) has been confirmed by the Government, which will be applied to all EU member states from 25 May 2018. Although the UK is leaving the EU, this will still apply.
Individuals will be granted with;
• Easier access to their own data
• A ‘right to be forgotten’
• A right to know when their data has been hacked.
Organisations will benefit from having:
• A single set of data protection rules across the EU
• One supervisory authority, rather than the current 28.
Notifications to supervisory bodies are also being scrapped. But companies may be required to;
• Pay a fine of up to 4% of global turnover if they breach the new rules
• Appoint a data protection officer in certain circumstances.