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What Changes to Employment Law are Coming into Force in April 2020?

on Thursday, 06 February 2020.

The IR35 rules will be rolled out to all large and medium-sized companies in the private sector on 6 April 2020. However, there are many more changes to come…

The following changes are coming into force on 6 April 2020.

S1 Written Statement of Particulars of Employment

    • Workers as well as employees must be given a 's1 statement.'
    • The s1 statement must be given to the individual on their first day.
    • Additional matters must be included in the statement, such as the days of work and, if variable, how they will be varied - any benefits, probationary period and any required training.

Holiday Pay Reference Periods - Calculation of a Week's Pay

    • Where a worker has been employed for at least 52 weeks, the reference period is increased from 12 weeks to 52 weeks.
    • Where a worker has been employed for less than 52 weeks, the reference period is the number of weeks for which the worker has been employed.

Agency Workers - Swedish Derogation Model Abolished

    • Agency workers who have an employment contract with their agency guaranteeing pay between assignments will now have the right to equal pay with comparable direct employees.
    • Agencies must update their workers with a statement to notify them of this change by 30 April.

Key Information Documents

    • Temporary agencies and employment businesses will be required to provide agency workers with a 'Key Information Document'. The document must include details of the type of contract, the expected pay, who will pay them and by what method.

Information and Consultation Thresholds Lowered to 2%

    • To encourage engagement in the workplace, the percentage required for a valid employee request for an information and consultation agreement, which governs how their employer will consult about economic and employment-related matters, will be lowered from 15% to 2% of the workforce.

Termination Payments - Employer NICs Now Payable

    • Employer National Insurance contributions will be payable on any ex-gratia termination payments that exceed £30,000. Ex-gratia payments will continue to be free of employee NICs.

Parental Bereavement (Pay and Leave) Act 2018

    • Subject to parliamentary approval, a new right to two weeks' parental bereavement leave for parents who suffer the loss of a child under the age of 18 will also come into effect from 6 April. This will be a day one right but parents with six months' service will also be eligible for statutory parental bereavement pay.

The Queen's Speech outlined further proposed changes to employment law and a new Employment Bill is expected later this year. We will provide you with updates on further changes and the Employment Bill when details are made available.

If you would like any further advice on these changes, please contact Nadjia Zychowicz in our Employment Law team on 01923 919 375, or complete the form below.

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