What changes are happening in April 2016? - DAC Beachcroft

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What changes are happening in April 2016?

Published On: 15 April 2016

Employers should be aware that the following changes will take place in April:

1 April 2016

  • National Living Wage: The new National Living Wage will apply to workers aged 25 and over at a rate of £7.20 an hour; 
  • Penalty for underpayment of National Minimum Wage: This will increase from 100% to 200% for each underpayment.

6 April 2016

  • Financial penalties for unpaid tribunal awards and settlements: A new scheme for penalising employers who fail to pay tribunal awards or settlement sums under a COT3 will be introduced;
  • Tribunal postponements: New rules will come into effect in relation to the postponement of employment tribunal hearings;
  • Abolition of contracting-out on a salary related basis: On 6 April 2016, the government NICs rebates for contracting out of S2P will be removed and employers and employees will have to contribute in full;
  • Tribunal compensation limits:

Compensation limit

Current figure

From 6 April 2016

Maximum compensatory award for unfair dismissal



Maximum limit on a week's pay



Minimum basic award for certain unfair dismissals (dismissals for reasons of trade union membership or activities, health and safety duties, pension scheme trustee duties or acting as an employee representative or workforce representative)



  • Other statutory rates are not rising: Statutory maternity, paternity, adoption and shared parental leave rates will stay the same, as will SSP.