Key employment law updates | March 2021

Increases to National Minimum Wage rates and statutory Tribunal payments

On 6 April 2021, the statutory increases to the National Minimum Wage rates will come into force as follows:

Please also note, the age eligibility for the highest rate (the 'National Living Wage') will reduce from age 25 to age 23 on the same date.

In addition to the above, on 6 April 2021, the following increases will apply to the statutory limits on Employment Tribunal awards:

• The limit on a week's pay will increase from £538 to £544;

• The maximum compensatory award for unfair dismissal will increase from £88,519 to £89,493 (for all dismissals taking place on or after 6 April 2021); and

• The minimum basic award for certain unfair dismissals (including health and safety dismissals) will increase from £6,562 to £6,634.

Implementation of the IR35 Off-Payroll Working Rules

The much anticipated IR35 off-payroll working rules will come into force on 6 April 2021, requiring all end-user clients to prepare a formal status determination statement prior to:

• the start of any new consultancy arrangements on or after 6 April 2021; or,

• the first payment falling due on or after 6 April 2021 in respect of existing consultancy arrangements which will extend beyond this date.

Further information can be found here.

Delayed gender pay gap reporting

Whilst ordinarily private employers would be required to submit their gender pay gap reports by 4 April, in response to the continuing effects of COVID-19, the Equality and Human Rights Commission has confirmed that employers have an additional six months, to 5 October 2021, in which to meet their reporting obligations.