Round up of Employment Law Changes effective 6th April 2020

Employment Law Changes 2020

Take a look at our breakdown below for more information on our round up of Employment Law changes effective 6th April 2020!

Holiday Pay 

What is the current Law?

Currently, holiday pay is based on the days or hours worked per week, annually, compressed hours or shifts and if the employee’s working hours don’t vary; it is calculated on their usual pay rate. However, if the employee’s hours are not fixed, the holiday pay is calculated on their average pay in the previous 12 weeks.

What is changing from April 2020?

From 6th April 2020, the amendments made to the Working Time Regulations 1998 come into force. The changes impact the 12-week time period that is being increased to 52 weeks. If your employee has not been employed for 52 weeks, the holiday pay is calculated on the number of weeks that they have been employed.

These amendments greatly benefit employees on variable hours or variable pay rates and can assist in peaks and seasonal roles, where overtime is worked at specific times within the year.

What does it mean for businesses?

Businesses should ensure they all records on hours worked and pay received should be correctly stored to ensure the employee’s entitlement and pay. Ensuring pay entitlements is stored securely for simplicity when annual leave requests come through.

Changes to rates and wages

From April 2020, the National Minimum Wage and National Living Wage has its usual increase.

Please see our blog for more information and a breakdown below:

DateWorkers aged 25 and over Workers aged 21 – 24 Workers aged 18 – 20 Workers aged under 18 Apprentice Rate*
1 April 2020£8.72£8.20£6.45£4.55£4.15
1 April 2019 £8.21£7.70£6.15£4.35£3.90

There has also been changes to the below:

  • Statutory Sick Pay (SSP) has increased from £94.25 to £95.85
  • Statutory Maternity and Paternity Pay has increase from £148.68 to £151.20

Agency Workers

Firstly, from the 6th April, all agency workers should all be provided a ‘Key Information Document’ with simple written terms on employment arrangements. The new requirements for the ‘Key Information Document’ have been introduced into the Regulation 13A of the ‘Conduct Regulations’. Take a look at the Gov.uk for further information and the blank document for you to adapt.

Furthermore, the ‘Swedish Derogation’ currently allows agencies to not pay the temporary staff the same as the client’s employee’s after the 12-week period. However, from 6th April 2020, the Swedish derogation will be abolished, and agencies must provide their workers with a written statement explaining these provisions no longer apply. This impacts on employment businesses and agency workers currently on ‘Swedish Derogation’ contracts.

Statements of particulars

From 6th April, Employers are required to provide their employees with a written statement of terms on day one, rather than within two months. The written statement also now requires further information including:

  • Paid leave guidance
  • Any benefits available including health insurance, accommodation, vouchers etc
  • Details of probationary period including the terms and conditions
  • Training information and entitlement that is available by the employer or required to complete by the employee

What does this mean for any current statements?

Employer’s should review any current written statements and ensure they are compliant with the changes, in preparation for new employees. Remember… the statement of particulars should be provided from day one of starting work, within one document.

  • The written statement should be received no later than one day of the employee’s employment or engagement
  • The written statement must include information on sick pay, training requirements, probation, disciplinary and grievance procedures and maternity/paternity entitlement.

The changes to the Employment Rights Act 1996 does not state that you have to provide all existing employees with an updated statement, however employers should be prepared for requests of updated statements from current employee’s, on or after 6th April 2020.

As an employee, can I request an update statement?

Yes you can, existing employee’s are entitled to an updated statement of particulars, which must be delivered no later than on mother after the request.

Parental Bereavement Leave

What is the current law?

There is no current law under Parental Bereavement, however most employees have a statutory right to a ‘reasonable’ period of unpaid leave, for unforeseen circumstances and emergencies. The current compassionate leave may have a defined number of days that will be paid for during any difficult times, however this is at the employer’s discretion.

What is changing from 6th April 2020

As of 6th April 2020, Parental Bereavement Leave will come into force and it allows two weeks’ paid leave if the employee suffer a stillbirth from 24 weeks of pregnancy or if they lose a child under the age of 18 and this is a right from the first day of employment.

  • Bereavement leave must be taken within 56 days of the child’s death
  • Parents will be entitled to paid bereavement leave for each child if they lose multiple children

As an employer, it is recommended to update your Dependent Leave policy and maintain the support and wellbeing of any employee’s that go through a bereavement. The Parental Bereavement Leave introduction provides a solid foundation or businesses in devising a policy.

Termination Payments Tax

From 6th April 2020, termination payments over £30,000 will now require employment National Insurance Contributions and income tax. In comparison to termination payments of up to £30,000 being paid free of both and over £30,000 required only income tax deductions only.

Appointments Personnel are not qualified HR or employment law professionals, the above summary is a guide for the changes to employment law from 6th April 2020, based on the advice received by our sources and advisors.

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