Key Employment Law Changes for 2020
There are a few things that you can guarantee in life. Death, taxes, and employment law changes. As we make our way towards 2020, it’s essential that as a business owner, you know exactly what’s coming, and how to prepare for it.
Now, I am sure that you don’t think you can just hope for the best and plead ignorance if you’re caught out? You need to have a good understanding of employment law and be compliant, and we’re here to help you. So, let’s take a look at the changes that you need to pencil in your diary…
Changes that came into force in April 2019
All workers and employees have the right to receive a pay slip that outlines hours worked if the worker or employee is hourly paid.
Changes taking effect April 2020
1.Extension of the right to a written statement of particulars of employment
At present, employers must provide a written statement setting out the basic terms of employment to all employees whose employment lasts for one month or more, and this must be provided within two months of the start of their employment. Under new legislation, this statement must be given by day 1 of their employment. In another significant change, the right to a written statement of particulars has been extended to include workers as well as employees. In addition to who the statements need to be given to and when, the legislation also requires additional information to be given, including:
- The days of the week the employee is expected to work
- Whether days or hours are variable and if so, the basis on which they will be determined
- All benefits provided by the employer
- Probationary period details including conditions for passing and duration
- Details of training entitlement, mandatory training etc. (including mandatory training which is not funded by the employer)
2.Increase in the period over which holiday pay is calculated
Currently, the holiday pay of a worker who has irregular working hours is calculated by averaging the number of hours worked over the previous 12 weeks (known as ‘the pay reference period’). Under the new regulations, from 6 April 2020, the pay reference period will be 52 weeks or, for those workers who have been working for less than 52 weeks, the total number of weeks they have worked. This change is designed to avoid workers losing out where their working hours are subject to fluctuations such as seasonal variations.
3.Increased Protection for Agency Workers
Currently, agency workers are entitled to be paid the same rates as permanent employees doing the same work after 12 weeks, unless they are working under specific contractual arrangements under which they receive a minimum level of pay when they are between assignments (this is known as the ‘Swedish derogation’ model). From April 2020, this distinction will be abolished and the right to comparable pay will apply to all agency workers after 12 weeks. The government has also introduced an obligation to provide agency workers with a Key Facts page providing basic information about their contract, pay rates and pay arrangements.
And of course, I’ve got to mention the B word – sorry! There’s the tricky issue of Brexit… There’s still a grey area over what we should really expect, though things are likely to become clearer in the coming months. As always, make sure that you keep an eye on our updates for practical, no-nonsense guidance on what you really need to know.
Do you know enough about Employment Law to avoid making can avoid costly mistakes? You can book your virtual cuppa with me and let’s make sure you have the right policies in place to keep you legal!