The National Minimum Wage (Amendment) Regulations 2016 come into force on 1 April 2016. The new National Living Wage will apply to workers aged 25 and over at a rate of £7.20 an hour.
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The Employment Appeal Tribunal (EAT) has decided that childcare vouchers provided under a salary sacrifice scheme are part of the employee’s “remuneration” and therefore do not have to be provided during maternity leave. However, where the vouchers are provided on top of salary, without a salary sacrifice, they are not part of the employee’s remuneration and must therefore be continued. The EAT expressed its conclusion somewhat tentatively, acknowledging that the issue was not clear-cut and further litigation is possible on this issue.
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