NICVA & Sector Matters HR Pre Budget Update 2016

As the financial year draws to a close it is a good opportunity to look at recent developments in employment legislation that may need to be factored into you 2016/17 staffing budget.

Things you may wish to consider are:

  1. The Introduction of the National Living Wage

The compulsory National Living Wage is to be introduced on 1 April 2016 and will be £7.20 per hour for people aged 25 and over.  For more information please see

  1. Auto enrolment

Automatic enrolment means that every employer across the UK must put certain staff into a pension scheme and pay into it. It is important that you recognise what you need to do – and by when - in order to comply with the specific duties you have as an employer. For more information please see:

  1. ‘Sleep-ins’ and the National Minimum Wage

Recent case law has found that ‘sleep-in’ workers may now be covered by National Minimum Wage (NMW) regulations in that time spent on a ‘sleep-in’ shift will count as working time for the purposes of the NMW calculation in the pay period. The Unison guide summarises the issue, giving helpful worked examples of the implications of ‘sleep-ins’ on earnings.  Note not all ‘sleep-ins’ have to be paid at the NMW rate, but overall total pay in the pay period must be at least the NMW (and National Living Wage from April 2016).  For more information please see these examples:

  1. Non-guaranteed Overtime and holiday pay

Recent case law is beginning to change the way holiday pay needs to be calculated. Workers should have ‘obligatory non-guaranteed’ overtime taken into account when they are being paid annual leave.  If you pay regular overtime rather than providing time owed in lieu (TOIL) you may want to find out more, please see

  1. New Shared Parental Leave

The new shared parental leave reforms (April 2015) give parents much greater flexibility about how they ‘mix and match’ care of their child in the first year after birth. They may take the leave in turns or take it together, provided that they take no more than 52 weeks combined in total. Organisations should be aware that more time and resources maybe needed to deal with the increased administration of shared parental leave compared to administering maternity leave.  For more information please see

Or book a place on NICVA’s free employment seminar on Shared Parental Leave and Pay which will be delivered by Mark McAllister from the Labour Relations Agency on Monday 7 March from 10.30am to 11.30am.  For more information on the session and to book a place please go to:

If you would like telephone advice on any of the above or have other HR queries please contact Alex McGimpsey, HR Manager NICVA by calling 028 9087 7777 or email [email protected]

If you require ‘hands on support’ with any HR issue please contact Louise Foster, HR Consultant at our social enterprise Sector Matters by calling 028 9087 5015 or email [email protected]

Sector Matters services include recruitment & selection support services, assistance with disciplinary and grievance processes, HR retainer service, HR policy and handbook reviews, assistance with redundancies and any other employment matters.

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