In this article we look at some of the key changes in employment law coming in the future to make sure you are not taken by surprise.
Written Statement of Key Terms/Employment Particulars on or after 6 April 2020
- All workers (including employees) starting work on or after 6 April 2020 will be entitled to a written statement of key terms on or before the date they start. This previously applied only to employees and had to be given not later than two months after the beginning of employment.
- The majority of written particulars must be provided in a single document as a day one right but there are exceptions relating to pensions, collective agreements, any training entitlement and certain information about disciplinary and grievance procedures, and these must be given no later than two months after the beginning of employment.
- The written statement will also need to include additional information:
- Any probationary period;
- The days of the week the worker is required to work, whether the working hours may be variable and how any variation will be determined;
- Any paid leave to which the worker is entitled;
- Details of all remuneration and benefits; and
- Any training entitlement provided by the employer, including whether any training is mandatory and/or must be paid for by the worker.
We would recommend that it is good practice to update your written statements sooner to reflect the new changes so you are ready and compliant when they come into force next year.
The Swedish Derogation to be abolished from 6 April 2020
- The Swedish derogation is being abolished so that all agency workers will have the right to pay parity after 12 weeks.
Key Facts for Agency workers from 6 April 2020
- All employment businesses will be required to provide agency work-seekers with a Key Information Document containing prescribed information including:
- The type of contract.
- The minimum expected rate of pay.
- How they will be paid and by whom (for example, by an intermediary or umbrella company).
- Any deductions or fees that will be taken.
- Any non-monetary benefits to which they will be entitled.
- Any entitlement to annual leave and payment in respect of such leave, and an illustrative example of what this might mean for their take-home pay.
Holiday Reference Period from 6 April 2020
- The holiday pay reference period for determining a week’s pay is changing from 12 weeks to 52 weeks.
Information and Consultation thresholds from 6 April 2020
- The threshold required for a valid employee request to negotiate an agreement on informing and consulting its employees will be lowered from 10% to 2% of employees, subject to the existing minimum of 15 employees.
IR35 and off-payroll rules
- As reported in November’s HR Watch (see link below) IR35 will be extended to the private sector from April 2020. https://www.se-law.co.uk/legal-blog/philomena-price-blog/2018/11/27/some-key-employment-announcements-from-the-autumn-budget-2018
- The responsibility for determining employment status for tax purposes will shift to the ‘employer’ who can use HMRC’s online tool to assess this.
- Employers may be able to rely on this online tool if the correct information has been entered but it is going to be developed further before April 2020.
- Employers should make sure they have an action plan in place to review their current arrangements with off payroll workers, their internal systems and policies. Employers should make sure their decisions on employment status are consistent.
National Insurance Contributions on Termination Payments
- From April 2020, Class 1A employer National Insurance contributions will be payable on termination payments over £30,000.
- This is in addition to the income tax already payable.
The Parental Bereavement (Leave and Pay) Act 2018
- It is expected that from April 2020 all employed parents or carers will be entitled to a day-one right to two weeks leave if they lose a child under the age of 18 or suffer a stillbirth after 24 weeks of pregnancy.
- If the employee has more than 26 weeks continuous service they will be paid at the statutory rate for the 2 weeks otherwise the leave will be unpaid.