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The new tax year means a lot of things at Bright Purple- in addition to our finance team being busy with accounts, our compliance team and our recruiters tend to spend a lot of time reading about new employment law changes.
In this blog we aim to cover some key legislative changes that we have been discussing both internally and with our clients recently. From Skilled Worker Visa updates to Flexible working, we hope you will find this useful.
First Things First
The start of the new financial year tends to bring a number of updated that both employers and individuals need to be aware of. These changes are often long-in-the-making, with part of the new rules being implemented throughout the year before the full change comes into effect. Many are well covered in the media, following research, petitions, parliamentary discussions, motions, and votes. This means that relevant parties - say employers - sometimes have a reasonable amount of time to prepare. Other times, legislative amendments can come as a bit of a surprise, with a not a lot of notice given!
Key Changes
Flexible Working Act
The new Flexible Working Act first gained Royal assent in July of last year, any it's been highly anticipated and welcome as people were waiting for it to come into effect on April 6.
The new act is giving millions of employees even more flexibility over where and when they work. Importantly, there are key changes to the following areas:
Minimum service requirement - None: it's a day one right
Number of request that can be made - x2 per year
Time limit for response - 2 months
Justification of impact - no justification required
Refusing a Request - Prior consultation with employee required
We have been speaking to both clients and candidates about the new flexible working act- and we're happy to report that these are changes that seem to be welcomed all around. At Bright Purple, we operate a hybrid working model and have had a flexible working policy in place for a long time. Our view on flexible working is incredibly positive, and we are proud to say that while the previous act provided legal guidance, we have always taken the viewpoint of trying to offer our people as much flexibility as possible. We work with some great clients that we learn a lot from, and the benefits of flexible working is something that we have seen first hand among both our clients and internally.
Increase to National Minimum and Living Wage
The new national living wage for workers aged 21 and over is now £11.44 an hour. This is a change from the previous age requirement which was 23 years, at a rate of £10.42 an hour. The BBC has outlined what this means in terms of yearly pay rises for the affected workers.
Employers need to make sure that they are paying their workers correctly. If you find out that you have paid an employee below the correct statutory rage, you are required to pay all arrears immediately, even if the worker has left their employment.
There is also important distinction to be made between statutory and voluntary wage rates - the National Minimum Living Wage and National Living Wage are statutory, whereas the Real Living Wage is voluntary. Those wanting to find out more about the important differences between these wage types can visit the Living Wage Foundation.
Skilled Worker Visa
Updates to the Skilled Worker Visa, the points based system which was introduced after the UK left the EU, has been on the top of the priority list of many of our clients. Unlike Flexible Working and Living Wage changes, which our clients are incredibly comfortable and proactive with, the skilled worker visa and sponsorship licence are areas where many have felt that they have had to wait for last minute updates and confirmation about changes.
Key changes that are now in effect include:
- The baseline minimum salary to be sponsored for a Skilled worker visa is now £38,700. This is up from the previous salary threshold of £26,200.
- The 'going rate' minimum salary, specific to each job title, has also increased significantly
- The Shortage Occupation List (SOL) has been re-named the Immigration Salary List (ISL)
- The baseline minimum salary to be sponsored for a Skilled Worker visa has increased from £26,200 to £38,700, while the ‘going rate’ minimum salary specific to each job has also gone up significantly.
- A list of jobs for which it is possible to sponsor someone for a Skilled Worker visa at a reduced minimum salary has been made shorter and renamed the Immigration Salary List.
Please also read this page for more information.
Most people reading this article also read about Fear of Rejection among job candidates
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