Anthony Collins Solicitors has been shortlisted for two Child Brain Injury Trust (CBIT) Diamond Awards.
National Minimum Wage
The National Living Wage (the highest band of the National Minimum Wage) increases to £8.91 per hour on 1 April 2021.
In addition, the age threshold for the National Living Wage is amended so that it applies to 23 and 24-year-old workers from 1 April 2021. Previously, it was available only to those aged 25 and over.
Other National Minimum Wage rates also increase on 1 April 2021, with hourly rates rising to £8.36 for workers aged 21 and 22, to £6.56 for workers aged 18 to 20 and to £4.62 for workers aged 16 and 17.
National Minimum Wage and record-keeping
From 1 April 2021, employers must keep records sufficient to establish that it is paying a worker at a rate at least equal to the applicable minimum wage rate for six years. This has increased from three years. This means that records from three years ago now need to be kept for six i.e. a record made on 1 April 2018 under the current law needs to be kept for three years so could have been destroyed from 1 April 2021; it now must be kept for a further three years. However, any record prior to 1 April 2018 doesn’t have to be kept for six years as the obligation to keep it has already ended.
- Update pay rates on the payroll system and ensure that the National Living Wage band is increased.
- Advise all affected workers of the increase.
- Ensure that record keeping is extended for the required six years for all NMW records to ensure compliance.
Statutory redundancy pay
From 6 April 2021, the maximum weekly pay for the calculation of redundancy pay (for employees with two years’ service or more) will be £544.
- Ensure that any redundancy payments made after 6 April 2021 take account of the new maximum
Statutory family-related pay and Statutory Sick Pay
The weekly rate of statutory maternity, paternity, adoption, shared parental and parental bereavement pay increases to £151.97 from 4 April 2021.
The weekly rate of Statutory Sick Pay increases to £96.35 from 6 April 2021. The Government has introduced legislation to confirm that this increased rate applies to employees who are self-isolating in accordance with emergency Coronavirus legislation the Government introduced in 2020.
- Update rates for those on leave currently.
- Review any policies and update figures where appropriate.
For more information
For further information in relation to any of the above, please contact your relevant ACS contact or Matt Wort.
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