As 2019 ends and we look forward to the festive period, it is a good time to look at what new developments we can expect in Employment Law. Below is a summary of the changes coming in 2020. These are all due to apply from 6 April 2020 (subject to final legislation being passed in some cases):
1. A written statement of terms will have to be given on or before the first day of employment, rather than within two months of employment starting. There will also be a change to the information that must be given in the written statement. This will include information on the length of time a job is expected to last, the notice period, eligibility for sick leave and pay, other rights to leave such as maternity pay or paternity pay, any probationary period, all pay and benefits, and specific days and times of work.
2. The right to a written statement of terms will be extended to all workers, rather than just employees, for all new joiners on or after 6 April 2020.
3. There will be an increase to the reference period for determining an average week’s pay for the purposes of calculating holiday pay under the Working Time Regulations. The reference period will increase from 12 weeks to 52 weeks, or if the worker has been employed for less than 52 weeks, the number of complete weeks for which the worker has been employed.
4. Employed parents who have lost a child will be entitled to two weeks’ leave (irrespective of their length of service) to allow them time to grieve away from the workplace. It will be available to be taken as a single block, or as two separate weeks, and employed parents will have a period of 56 weeks in which to use their entitlement.
5. All termination payments above the £30,000 threshold will be subject to class 1A NICs. The Class 1A NIC liability will only apply to the amount of the payment exceeding £30,000.
6. The “Swedish Derogation” in the Agency Workers Regulations 2010, will no longer apply. So, what does this mean? Currently, employment businesses are allowed to avoid pay parity between agency workers and direct employees if certain conditions are met. The exemption currently applies where the agency worker has a permanent contract with the agency before they started with the hirer, in which they get paid between assignments. Agencies must inform relevant agency workers in writing by 30 April 2020 that the Swedish Derogation no longer applies.
7. Temporary work agencies will be required to provide agency work-seekers with a Key Information Document, including information on the type of contract, the minimum expected rate of pay, how they will be paid and by whom.
8. The threshold required for a request to set up information and consultation arrangements will be lowered from 10% to 2% of employees, subject to the existing minimum of 15 employees.
9. There are significant changes to the IR35 rules. The off-payroll working rules will be extended to large and medium-sized companies in the private sector, as announced in the Autumn 2018 Budget. We have a more detailed guide on this area if this is something you would like more detail on.
If you would like to know more detail about any of the above changes, please contact Rob Tice on 01332 866610 or e-mail on firstname.lastname@example.org.