Posted on 5th October 2016
What’s New in HR?
By Paul Samrah, partner at chartered accountants Kingston Smith in Redhill
While 2016 has been quiet on the employment legislation front, there has been some useful detail published on some of the bigger projects such as gender pay reporting and the apprenticeship levy. While these initiatives may not impact directly on individual employees, they will be key to attracting new talent and ensuring a positive employer brand for organisations.
The Government has announced plans for the apprenticeship levy, which comes into effect in April 2017. The key facts are straightforward: from 6 April 2017, employers with a wage bill of more than £3 million will pay a 0.5% levy to fund apprenticeships; the levy will be charged at 0.5% of that annual pay bill, but eligible employers will receive a £15,000 allowance – available through the Digital Apprenticeship Service – to offset the costs. The detail is likely to be very complex.
Gender Pay Reporting
In February this year, the Government announced that organisations with 250 or more employees will have to publish prescribed information about their gender pay gap data between male and female employees on their websites by 30 April 2018, with an initial “snapshot” of data being taken from the 30 April 2017 salary figures.
The data between male and female employees must be shown as a split between the sexes. The legislation currently states that these overall figures must be shown; however, it does not prevent firms from widening the narrative and giving a more detailed rationale, such as the numbers of males and females in each role; or the breakdown of gender pay gaps from each department or hierarchy levels.
Some organisations have already started looking at their pay gap and taking steps to address this. It is recommended that analysis is undertaken now to allow plenty of time to understand and address any potential gap.
Paul Samrah is a partner at the Redhill office of top 20 chartered accountants and business advisers Kingston Smith LLP. He can be contacted at firstname.lastname@example.org or on 01737 777 9000.
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