UK Employment Law Changes From 6 April 2021

A number of important UK employment law changes come into effect from April 6.  

New National Minimum Wage regulations come into force

This changes minimum wage for those aged 23 and over to £8.91 (up from £8.72). See RHI’s previous article here for full details on minimum wage rates for age ranges below 23. 

IR35 comes into force

The revised rules impact how contractors who are engaged through personal service companies (PSCs) are taxed and impose a greater administrative burden on the companies that engage them. Full details of the new rules are available on the government website 

Limits to tribunal awards increased

In cases involving dismissal, the new increased rates will apply where the effective date of termination falls on or after 6 April 2021: 

  • The limit on a week’s pay will increase to £544 (from £538) 
  • The maximum compensatory award for unfair dismissal will increase to £89,493 (from £88,519) 
  • The minimum basic award for certain unfair dismissals will increase to £6,634 (from £6,562) 

Increase to Vento bands

The Vento guidelines have been updated to increase the award bands for compensation for injury to feelings and psychiatric injury. The Vento guidelines apply to discrimination claims brought under the Equality Act 2010 and consider compensation even where an employee may have suffered no financial loss. The new bands are as follows: 

  • The lower band (for less serious cases) increased to : £900 – £9,100. 
  • Middle band (for those cases, which do not merit a higher award) increased to: £9,100 – £27,400. 
  • The upper band (the most serious cases) remains unchanged at: £27,400 – £45,600. 

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