Employment Law 2016 – Key Financial Uplifts

Author: Paul Neilly
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  1. Introduction of the National Living Wage – from 1 April 2016, the National Living Wage took effect in the UK. All workers aged 25 and over are entitled to be paid a minimum of £7.20 per hour.


  1. National Minimum Wage Rates – from 1 October 2016, the apprentice rate will rise to £3.40, the minimum hourly rate for 16-17 year olds will increase to £4.00, 18-20 year olds will be entitled to a minimum of £5.66 and 21 -24 year olds must be paid at least £6.95 per hour. Penalties for employers failing to pay the above rates doubled from 1 April 2016 to 200% of arrears, subject to a maximum of £20,000 per worker.


  1. Unfair Dismissal Awards – from 6 April 2016, in unfair dismissal claims the maximum Compensatory Award has increased from £78,335 to £78,692. The Basic Award, which applies in addition, has increased from £14,250 to £14,370.


  1. Redundancy Pay – from 6 April 2016, the maximum amount of statutory redundancy pay has been increased from £14,250 to £14,370. The weekly figure at which pay is capped for calculating redundancy payments has increased from £475 to £479.


  1. Statutory Sick Pay – from 6 April 2016, the standard rate of statutory sick pay is £88.45 per week.


  1. Statutory Maternity, Paternity and Adoption Pay – from 6 April 2016, the standard rate of statutory maternity, paternity and adoption pay is £139.58 per week.


If you would like to discuss any employment law matter, please contact Hugh Grant (hjg@mitchells-roberton.co.uk) or Paul Neilly (pdn@mitchells-roberton.co.uk) or telephone 0141 552 3422.

About Paul Neilly

Paul’s first degree was a BA Honours in Financial Services following which he spent five years working for a large insurance company as a pensions specialist. He then completed his law degree at the University of Strathclyde and Diploma in Legal Practice at the Glasgow Graduate School of Law. Paul subsequently joined Mitchells Roberton as a trainee in July 2006 and qualified as a solicitor in September 2008. Paul was made Partner in July 2015. Principally concerned with civil litigation, Paul specialises in contract disputes, landlord and tenant issues (commercial and residential), debt recovery, family law, employment law and personal injury claims. He also handles cases involving Adults with Incapacity. Paul regularly appears in the Sheriff Courts throughout Scotland and has experience of appearing before Licensing Boards and instructing matters in the Court of Session. Being a general civil litigator Paul is keenly aware of the need to keep step with developments in the law and legal education. This led Paul to join the committee of TANQ, the Trainee and Newly Qualified Society of the Royal Faculty of Procurators in Glasgow, in which role Paul currently organises seminars and networking events for its members. Paul is married with a young son and daughter. In his spare time he enjoys cooking, reading and watching sport, particularly following the exploits of the national football and rugby teams, although this is more of a vocation than a source of enjoyment. Email: pdn@mitchells-roberton.co.uk

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