Employment Law Update

A number of employment law changes that could impact your business came into force this month. Firstly, The Government has increased the rate of Statutory Maternity Pay (SMP), Statutory Paternity Pay and Statutory Adoption Pay to £135.45 from £128.73. For more information please go to www.hmrc.gov.uk/paye/rates-thresholds.htm.

Secondly, The qualifying period for unfair dismissal has gone up from one year to two years, meaning employees whose contract commence on or after the 6th April must have completed a continuous period of two years in their employment before they are eligible.

Thirdly, there have been two important new changes to Income Tax and National Insurance.  The lower earnings limit for national insurance contributions has increased from £102 to £107 (go to www.legislation.gov.uk/uksi/2012/804/made for more information) and the income tax personal allowance threshold has increased by £630, bringing it to £8,105. For more information please go to the HM Treasury website.