Employment law changes

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As Brexit continues to dominate the news, construction employers should be aware of several employment law changes that will come into effect in 2019.

The first change that will affect the construction industry is the post-Brexit immigration rules. Regardless of whether the UK exits with a deal or crashes out of the EU, the rules concerning the employment of EU nationals will be different. Freedom of movement will no longer apply, and in the future, the employment of EU nationals will be under restriction in the same way as it is for workers from other parts of the world. Employers will need to adjust their recruitment practices to maintain an effective workforce.

1st January saw the introduction of pay reporting for executives. UK companies with over 250 employees must now report the ratios between their CEOs’ pay and benefits and those of their employees. This new requirement only applies to fiscal years that started on or after 1st January, so the first reports will not come into effect until 2020. Nevertheless, employers should start gathering their evidence as soon as possible.

April 2019 will see the extension of itemised pay statements to all workers, not only employees. If an employee’s pay varies depending on the hours that he or she works, then the employer must include the total number of hours for which the employee receives pay on the itemised statement. This may appear as one figure or separate figures for each type of work or pay rate.

The national living wage and other minimum wage rates are also set to increase on 1st April.