Employment Rights Act 1996: Core legislation governing wage deductions, wage protection, and requirements for written employment particulars. Essential for ensuring the salary deferral agreement complies with basic employment rights.
National Minimum Wage Act 1998: Ensures that any salary deferral arrangement doesn't result in effective pay falling below statutory minimum wage requirements, including National Living Wage regulations.
Income Tax Act 2007 and PAYE Regulations: Addresses tax implications of salary deferral, including timing of tax liability and HMRC reporting requirements for deferred compensation.
National Insurance Contributions Act 1992: Governs the impact on National Insurance Contributions calculations and payments, including timing of NIC liability for deferred salary.
Pensions Act 2008: Covers impact on pension contributions, auto-enrollment considerations, and calculation of pensionable earnings when salary is deferred.
Financial Services and Markets Act 2000: Relevant if the deferral involves investment elements or is linked to securities, ensuring compliance with financial services regulations.
Equality Act 2010: Ensures the salary deferral arrangement is not discriminatory and maintains equal treatment principles across all employee groups.
Insolvency Act 1986: Addresses the protection of deferred wages in case of employer insolvency and establishes priority of claims for deferred compensation.
GDPR and Data Protection Act 2018: Governs the handling of personal and financial data related to salary deferral arrangements, including record-keeping requirements.
