Employment law changes in April 2020

As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2020.

Introducing parental bereavement leave

An Act passed in 2018 has resulted in the introduction of parental bereavement leave to provide support for bereaved parents. The leave will be available to parents who lose a child under 18, or suffer a still-birth in the later stages of pregnancy.

What is it?

Employees will be entitled to 2 weeks leave, and employees with 26-weeks continuous service will also be entitled to pay at the statutory rate. This leave is separate from the statutory right to unpaid time-off in an emergency, and compassionate leave which is discretionary.

Action to take

Employers should take the following steps, prior to April 2020:

  • review your current leave policies and decide if you will follow or exceed the minimum requirements of this legislation;
  • review and update policies and handbook to include this entitlement, as well as any other policies which may benefit from this information (for example, any family friendly policies);
  • consider if you need to review and update other content in your handbook, and
  • review and update your contracts of employment, so they are fit for purpose.

More information

Changes to written statements of particulars of employment

The current law states that written statements must be issued by employers to their employees within 2 months of their start date.  The new law will require employers to give all workers (not just employees) a written statement on or before their start date. In addition the written statements must include:

  • the hours and days of the week the worker /employee is required to work, if they are varied and how;
  • any details of a probationary period;
  • their entitlements to paid leave;
  • any details of training provided by the employer and
  • other benefits not covered elsewhere in the written statement.
Action to take

Employers should take the following steps, prior to April 2020:

  • be aware of exactly what needs to be included in the written statement;
  • know about any other information which needs to be provided to employees in writing;
  • ensure you have a template statement / contract of employment which is ready to use, should you need to make a new hire and
  • review your current written statement / contract of employment to ensure it complies with the new requirements.

More information

Increase in the holiday pay reference period from 12 weeks to 52 weeks

The reference period for calculating holiday pay for workers with irregular hours will change. Employers will need to look back over the past 52 weeks for the purposes of calculating holiday pay.

IR35 changes for the private and public sector

The public sector IR35 reforms will be extended to cover medium and large private-sector employers. This means that responsibility for determining if IR35 applies to independent contractors will shift to the organisation, not the individual. Employers should review whether they fall in to the category ‘medium’ or ‘large’ employer and then review their contractors and pay arrangements to determine how the new rules will affect them.

More information

If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.

 

 

The Employment Status Conundrum

The ‘gig’ economy has been centre stage recently in the news and has caused confusion around individual’s employment and tax status.

Recent cases

Uber is adamant its drivers are NOT employees. However, an employment tribunal  concluded they are, ‘workers’.  Addison Lee  also had a recent employment tribunal judgement, which came to the same conclusion.

The consequences

These cases demonstrate the pitfalls of getting it wrong, on a large scale. The judgements of the tribunals have definitely provided Uber and Addison Lee with bucketloads of negative PR.  They also have the administrative headache of changing their status, backdated rights to holiday pay and the National Living Wage. There’s also a strong chance that HMRC will collect backdated employer’s tax contributions for all of their newly defined workers.

How to establish status

In order to avoid the same problems as Uber and Addison Lee, employers are well advised to make a proactive and honest assessment of people they hire and ask the following:

  • Does the individual work off-site?
  • Are they using their own equipment?
  • Is there a mutual obligation about you offering work and the individual having to accept work when offered?
  • Does the individual regularly work for other companies?
  • Can the individual send someone else of their choosing by way of a substitute, to carry out the work?
  • Does the individual control how or when the work is completed?

If the answer to one or more of the above questions is ‘no’, the individual you’re hiring is probably not self-employed. If you treat them as self-employed, in the long-term you may very well come up against some difficult and costly issues.

We can help

If you need any advice or support on determining the employment status of individuals working for your company and what it means, get in touch with Helpful HR.