Legislation Updates

The Good Work Plan 2020

The changes under this plan will strengthen UK employment rights and employers must plan to prepare for this change, which is expected to come into force in April 2020. The plan focuses on fair and decent work; as part of that improving communication and certainty in the working relationship was key. Therefore, it will now be mandatory to include information about workers’ rights in the written statement of employment. The following points, in addition to the current mandatory information that must be provided, will be required in a written statement (commonly referred to as a contract of employment) issued to all workers (not just employees) on or by the first day of employment:

• How long a job is expected to last or the end date of a fixed term contract.
• How much notice an employer and worker are required to give to terminate the contract.
• Details of eligibility for sick leave and pay.
• Details of other types of paid leave e.g. maternity leave and paternity leave.
• The duration and conditions of any probationary period.
• All remuneration (not just pay) – contributions in cash or kind e.g. vouchers and lunch.
• Which specific days and times workers are required to work.

Employee Flexibility

Employees will have the right to request a more predictable and stable contract after 26 weeks of employment. This is most likely to benefit casual or zero-hour workers.

Extending the break in continuous service from one week to four weeks to help employees who work irregular hours to qualify for more employment rights that require a particular length of service.

Agency Workers

Protecting agency workers – Agency workers are entitled to the same level of pay as a permanent worker after 12 weeks service unless the agency worker opts out of this right and elects to receive a guaranteed level of pay between their temporary assignments (Swedish Derogation). This opt out will be removed from April 2020 as agency workers are financially worse off when taking this route.

National Minimum Wage

National Minimum Wage – From 1st April 2020 will see increases:

• rate for 25+ year olds (the national living wage) from £8.21 to £8.72 per hour
• rate for 21 to 24 year olds from £7.70 to £8.20 per hour
• rate for 18 to 20 year olds from £6.15 to £6.45 per hour
• rate for 16 to 17 year olds from £4.35 to £4.55 per hour
• rate for apprentices from £3.90 to £4.15 per hour.

Holiday Calculations

The reference period used to calculate holiday pay will be extended from 12 weeks to 52 weeks, which is important for individuals who work variable hours.

Early May Bank Holiday 2020

Recently, the Government press release has confirmed the Early May Bank Holiday in 2020 will move from Monday 4 May to Friday 8 May to mark the 75th anniversary of VE day. If you require your employees to work on Friday 8th May, you must communicate and consult with your employees to inform them this will be a normal working day and provide them with an alternative day off.

Post Brexit Immigration Rule Changes

Regardless of whether UK’s exit deal is agreed the rules around the employment of EU nationals will change at some point. This means there will not free movement of EU nationals. The government has introduced a scheme where EU workers that are already working in the UK can apply for ‘Settled Status’ to be able to live and work in the UK indefinitely.

However, for recruiting EU nationals going forward they will be subject to restrictions the same as other foreigners living outside of the EU. Therefore employers would need to assess their recruitment strategy and review processes and policies for recruitment and retention.

Parental Breavement Leave - April 2020

The Parental Bereavement (Leave and Pay) Act 2018 provides for at least two weeks' leave for employees following the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnancy. Employees with 26 weeks' continuous service will be entitled to paid leave at the statutory rate and other employees will be entitled to unpaid leave.

6 April – Apprenticeship levy

The Government is aiming to introduce an apprenticeship levy for larger public and private employers in the UK to help to fund up to £3 million new apprenticeships during the life of the current Parliament.

The proposals include setting a rate at 0.5% of an employer’s pay bill across all sectors of industry and commerce. The intention is that the levy will only be payable on a pay bill in excess of £3 million. Employers with an annual pay bill less than £3 million will not pay anything. However, a ‘levy allowance’ of £15,000 per year is also being proposed. This means that the total amount an employer will spend is 0.5% of their pay bill, minus £15,000.

April 2017 – Data collection and reporting of pay rates of male and female employees

All private and voluntary sector employers in England, Wales and Scotland who have at least 250 employees will be mandatorily required to publish information on any differences in pay rates between men and women in their employment.

The information will be based on the level of each relevant employee’s pay as at April 2017. Going forward, the rates must be reported at every subsequent April.

2017

April 2017 – National Minimum Wage and National Living Wage

The Government announced in the Autumn Statement that the following increases to the National Minimum Wage and National Living Wage would apply

National Living Wage rate for workers aged over 25 years will increase to £7.50 per hour.

National Minimum Wage:

• Rate for workers aged 21 to 24 years will increase to £7.05 per hour.
• Development rate for 18 to 20 year olds will increase to £5.60 per hour.
• For 16 to 17 year olds will increase to £4.05 per hour.
• Apprentice rate will increase to £3.50 per hour