Make sure you’re up to date with key changes to UK legislation, affecting your working and contractual obligations to your employees. Under the Good Work Plan, from 6th April 2020 changes include:
New Legal Right to Paid Parental Bereavement Leave
The Government has announced that working parents who lose a child under the age of 18 will get 2 weeks’ statutory leave.
The Parental Bereavement Leave and Pay Regulations will implement a statutory right to a minimum of 2 weeks’ leave for all employed parents if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy, irrespective of how long they have worked for their employer.
The Paid Parental Bereavement Leave Changes:
- The right to Parental Bereavement Leave (PBL) will apply to all employed parents who lose a child under the age of 18, or suffer a stillbirth (from 24 weeks of pregnancy), irrespective of how long they have been with their employer (the leave is a ‘day-one’ employment right).
- Parents with at least 26 weeks’ continuous service with their employer and weekly average earnings over the lower earning limit (£118 per week for 2019 to 2020) will also be entitled to Statutory Parental Bereavement Pay (SPBP), paid at the statutory rate of £148.68 per week (for 2019 to 2020), or 90% of average weekly earnings where this is lower.
- SPBP will be administered by employers in the same way as existing family-related statutory payments such as Statutory Paternity Pay.
Written Statements of Employment Particulars
Businesses must be aware of amendments to how and when written statements of employment should be issued, with important changes coming into force:
- All workers employed on or after 6th April 2020 will be entitled to a written statement of employment particulars, extending from just employees to include workers.
- Employees and workers have the right to a written statement from day one of employment.
- There are additional requirements for statement which must be contained in a single document (not instalments). These are:
- The days of the week required to work and whether working hours or days may be variable, with details of how they may vary.
- Any entitlement to paid leave, including maternity leave and paternity leave.
- Any other remuneration or benefits provided by the employer.
- Any probationary period, including any conditions and its duration.
- Any training provided by the employer which the worker is required to complete and any other required training in respect of which the employer will not bear the cost.
Additionally, there are particulars that may currently be included in a supplementary statement but from April 2020 will have to be given in the principal statement:
- The notice periods for termination by either side.
- Terms relating to absence due to incapacity and sick pay.
- Terms as to length of temporary or fixed-term work.
- Terms related to work outside the UK for a period of more than one month.
Changes to holiday pay calculations
The reference period to calculate a ‘week’s pay’ for holiday pay purposes will extend from the previous 12 weeks of work to the previous 52 weeks.
Changes to Agency workers’ rights
Three key changes to agency workers’ rights:
- After 12 weeks all agency workers will be entitled to the same rate of pay as their permanent counterparts. Previously agency workers could agree a contract which would remove their right to equal pay with permanent counterparts after 12 weeks working at the same assignment.
- 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.
IR35 – changes to the tax treatment of off-payroll labour
Changes to tax legislation regulating off-payroll working, known as IR35, come into force. Contractors working through their own companies must be taxed at source if they would have been employees if engaged directly.
Check employment status via this Government tool: https://www.gov.uk/guidance/check-employment-status-for-tax
Changes to ICE (Information and Consultation of Employees) Regulations
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 will be implemented. The percentage of workforce who must put in a request before an employer is obliged to take steps to comply will reduce from 10% to 2%. The requirement that at least 15 employees make the request will remain.
NMW and other rate increases
The Government has confirmed it will raise the National Insurance threshold to £9,500 in 2020. The National Living Wage has also been increased by 6.2%. New rates can be found here: https://www.gov.uk/government/news/government-announces-pay-rise-for-28-million-people
For more information on how these changes impact your HR Policies and Processes, contact hr inspire.