Employment law changes coming in April 2020
January 14, 2020
Changes to written statements of employment particulars
Implementation date: 6th April 2020
There are three important changes to written
statements:
- All workers employed on or after 6th April 2020 will be entitled to a written statement of employment particulars.
- Employees and workers must be provided with their written statement on or before their first day of employment.
- There is additional information that written statements will need to contain, including:
- the hours and days of the week the worker /employee is required to work, whether they may be varied and how
- entitlements to any paid leave
- any other benefits not covered elsewhere in the written statement
- details of any probationary period
Changes to Statutory Pay Rates
From 1st April 2020 | ||
Current rate | New rate | |
Workers aged 25 and over (the national living wage) | £8.21 | £8.72 |
Workers aged 21 to 24 inclusive | £7.70 | £8.20 |
Workers aged 18 to 20 inclusive | £6.15 | £6.45 |
Workers aged under 18 who are no longer of compulsory school age | £4.35 | £4.55 |
Apprentices aged under 19, or aged 19 and over but in the first year of his or her apprenticeship | £3.90 | £4.15 |
Accommodation offset (per day) | £7.55 | £8.20 |
From 5th April 2020 | ||
Current rate | New rate | |
Statutory Maternity Pay | £148.68 | £151.20 |
| Statutory Paternity Pay | £148.68 | £151.20 |
| Statutory Shared Parental Leave | £148.68 | £151.20 |
| Statutory Adoption Pay | £148.68 | £151.20 |
| Statutory Sick Pay | £94.25 | £95.85 |
Changes to holiday pay calculations
Implementation date: 6th April 2020
There
will be an increase to the reference period used to determine a ‘weeks’
pay’ when calculating holiday pay for workers with irregular hours. The
reference period which is currently 12 weeks will increase to 52 weeks. This is
particularly beneficial to those that are employed in seasonal or atypical
roles as the payment for a week’s holiday will be reflective of the average
hours worked throughout the year. The “Good Work Plan” provides the following
example:
Chitrita works in a large retail store, working on average 35 hours each week.
May, June and July are quieter months for the store and so Chitrita typically
works 25 hours per week. Under the current 12 week reference period for holiday
pay if Chitrita takes holiday in August, immediately after this quieter time,
her holiday pay will reflect her 25 hour working week. This means she will
receive less holiday pay compared to busier times of the year. However, once
the reference period is extended to 52 weeks, Chitrita’s holiday pay would
reflect her average hours for the entire year, which are usually higher than
during these quieter months. This is a fairer approach for Chitrita and her
employer as her holiday pay will better reflect her working hours across the
year.
Parental bereavement leave rights take effect
Implementation date: April 2020
The Parental Bereavement (Leave and Pay) Act 2018 provides for at least two weeks’ leave for employees following the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnancy. Employees with 26 weeks’ continuous service will be entitled to paid leave at the statutory rate and other employees will be entitled to unpaid leave.
Changes to agency workers’ rights
Implementation date: 6th April 2020
There are three important changes to agency workers’ rights:
- Abolition of the Swedish Derogation. The Swedish Derogation currently gives employers the ability to pay agency workers less than their own workers in certain circumstances. Under the derogation agency workers can exchange their right to be paid the same as directly recruited employees for a contract guaranteeing pay between assignments. From 6th April 2020, these contracts will no longer be permissible and after 12 weeks all agency workers will be entitled to the same rate of pay as their permanent counterparts.
- All agency workers will be entitled to a key information document that more clearly sets out their employment relationships and terms and conditions with their agency.
- Agency workers who are considered to be employees will be protected from unfair dismissal or suffering a detriment if the reasons are related to asserting rights associated with The Agency Worker Regulations.
Changes to ICE (Information and Consultation of Employees) Regulations
Implementation date: 6th April 2020
There will be a reduction in the percentage of employees required to make a valid request for an agreement on the sharing of information and consultation within the workplace. Currently at least 10% of the workforce must put in a request before an employer is obliged to take steps to comply with this right. From 6th April 2020 this will reduce to 2%, however the requirement for at least 15 employees to make the request will remain.
Change to tax treatment of termination payments above £30,000
Implementation date: April 2020
There will be a reduction in the percentage of employees required to make a valid request for an agreement on the sharing of information and consultation within the workplace. Currently at least 10% of the workforce must put in a request before an employer is obliged to take steps to comply with this right. From 6th April 2020 this will reduce to 2%, however the requirement for at least 15 employees to make the request will remain.
We know that employment law changes can be confusing and difficult to keep up with, but we’re here to answer your questions and help you stay on track.
01284 336060
Louise Tupman – louisetupman@totally-hr.co.uk
Penny Tansley – pennytansley@totally-hr.co.uk
