In the post Brexit climate it is still not entirely clear, at this stage, what will and will not be coming into force on 1 October 2016. We do know two things for sure though, the national minimum wage will rise but implementation of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2016 will be delayed.
The national living wage, which took effect in April 2016 will remain unchanged but all of the other rates will change on 1 October as follows:
- The rate for workers aged 21 to 24 rises to £6.95 per hour;
- The development rate (workers aged 18 to 20) rises to £5.55 per hour;
- The young workers rate (non-apprentices aged under 18 but above compulsory school age) rises to £4.00 per hour;
- The apprenticeship rate rises £3.40 per hour.
Going forward it is intended that the national minimum wage and the national living wage will be increased together in April each year.
The Equality Act (Gender Pay Gap Information) Regulations 2016 were due to come into force in October 2016 but information from the Government Equalities Office now suggests that this will be delayed until April 2017. However, although the implementation date may be delayed it is anticipated that the first "relevant date" under the Regulations will remain as 30 April 2017. This means that the first reports will still be required by the end of April 2018. The UK government have also just announced a consultation seeking the views on introducing mandatory gender pay gap reporting for large public sector employers.
The natural persons requirement in section 87 of the Small Business, Enterprise and Employment Act 2015 is due to take effect from October 2016. This inserts a new section 156A in the Companies Act 2006 banning corporate directors. There will be a 12 month period of grace from the date section 156A comes into force, after which any corporate directors will cease to be directors by operation of law.
The most recent update on the Public Sector Exit Payments Regulations 2016 was that they would not be implemented before 1 October 2016, but it is not yet clear whether they will be implemented on that date or delayed further. If they do come into effect they will limit exit payments to public sector employees to a maximum of £95,000.
We will provide a further update on the position in our October eBulletin.