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Latest Statutory Rate changes - don’t forget to write to your staff if applicable

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We reported last month on all the statutory changes due in April and our retained clients have received their handy pocket-sized Employment Law Fact Card to refer to.


However, where applicable, employees affected by the relevant changes should be written to, in particular:


Minimum wage increases

Hot on the heels of nearly 180 employers being ‘named and shamed’ for underpaying staff, the increases to minimum pay rates took effect from 1 April, as previously advised – for the latest rates click here


Failure to apply these rates correctly could lead to enforcement action and being named and shamed, both of which are not exactly ideal!


Auto-enrolment contributions

Alongside wages, employers will be responsible for increasing the minimum auto-enrolment contributions they pay towards workers’ pensions. From 6 April, employers will have to contribute 2% (up from 1%) and employees have to contribute a minimum of 3% (also up from 1%). The minimum contributions will increase again from April 2019.


These increases are a legal requirement; a failure to increase contributions appropriately could lead to a daily fine and being publicly named for non-compliance.


So, don’t forget to notify any staff affected by these changes and keep a copy of the communication on their personnel file.

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