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Employment Affairs
The statutory minimum National Living Wage and the National Minimum Wage for younger employees are reviewed each year following recommendations from the Low Pay Commission. Any changes take effect from the following April.
This year the age bands to which they apply have been changed to bring more employees into the highest rate band. The National Living Wage has previously applied to those age 25 and over, however from April 2021 it will apply to those age 23 and over.
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The Government has stated that the highest band rate will apply to those age 21 and over by 2024. Additionally, the Government has set a target that by 2024 the National Living Wage rate will reach the level of two thirds of median earnings.
The main rates from
April 2021 will be: • National Living Wage £8.91 per hour (+2.2%) • 21 – 22-year-old rate £8.36 per hour (+2.0%)
Rates for those under 18 years of age and further information is available online.
From April each year ‘benefit’ rates are also reviewed. For 2021 Statutory Sick Pay will be £96.35 per week and Statutory Maternity (Paternity) Pay will be £151.97 per week. Further information and the full schedule of benefit and pension changes is available online (this link and others referenced below can be found in the Members’ Area of the NASC website on the Employment Affairs page). As part of the continuing review/modernisation of employment practices the Government has opened a consultation proposing reform of post termination non- compete clauses in contracts of employment. The aim is to help foster a business environment where business start-ups can flourish.
The options for consultation are to ban non-compete restrictions altogether or to require employers to pay employees during any non-compete period, at a rate to be determined, but between 60% and 100% of pay. The Government cites existing practice in other countries as the basis of these consultation options. Further information can be found online.
From April the previously deferred ‘off payroll rules’, (IR35) which apply to the public sector are extended to large and medium sized business in the private sector. The aim is to ensure that workers who provide their services like employees are taxed like employees, even if they provide their services through a personal services company.
The basic decision for business affected will be whether, without the personal services company, the worker would be regarded as an employee for tax purposes. There is a free online tool for checking employment status, which is called ‘Check Employment Status for Tax’ (CEST) and can be found online.
This can be a complicated and contested area, should there be any concerns it is suggested specialist advice should be sought.
Last year the CIJC Employers determined that the pay & conditions review of the CIJC Working Rule Agreement due in June 2020 should not take place consequent on the national and industry circumstances at that time. It is anticipated that the CIJC Trade Unions will submit a 2021 pay and conditions claim shortly.
