There are some significant changes due to come in to force from 6th April 2020:
Holiday Pay
The reference period for calculating holiday pay for employees with variable contracts such as seasonal workers / zero hours contracts is changing from 12 weeks to 52 weeks. Things for employers to consider is how to implement the new reference period. Ensuring that records of pay for the new reference period is accurately recorded and up to date.
The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018
Statement of Terms
This extends to the right to a Written Statement of Terms and Conditions for employers and workers (previously it was just employees) from day one. Currently employers have 2 months to issue the statement for any employee working for them for longer than a year, this will change from 6th April 2020. The written statement is also being expanded and should include:
• The terms and conditions relating to work will extend to cover terms relating to normal hours of work, days of the week the worker will be required to work and whether these days/hours may vary;
• Terms relating to other forms of paid leave, such as family-friendly leave;
• Details of other employee benefits, not just those relating to pay, such as benefits in kind or financial benefits;
• Terms about probation periods, including those relating to length & conditions;
• Details of training provision and requirements.
Employers should review their current contracts to ensure all of the required information is included in their contracts. Procedures should be put in place to ensure the written statement is issued on or before the first day of work.
The Employment Rights (Miscellaneous Amendments) Regulations 2019
Agency Workers – Swedish Derogation
From 6th April 2020 the Swedish Derogation for Agency Workers is to be abolished. This currently allows agencies to opt out of equalising the pay of agency staff with direct employees if they have been with the same employer for more than 12 weeks.
The Agency Workers (Amendment) Regulations 2018
Other Changes
Parental Bereavement Leave and Pay
From 6th April 2020 the right to Parental Bereavement Leave will come in force.
Employees who lose a child under the age of 18 or suffer a stillbirth from the 24th
week of pregnancy will be given the right to two weeks leave as a day one
employment right. The weekly rate will be the same as the other family friendly
statutory rates of SMP, paternity leave etc.
The Government consultation explained the” bereaved parent” will be defined based
on the employee’s caring responsibilities for the child to avoid excluding those who
are not the child’s legal parents. To qualify, individuals aside from direct parents will
need to have the following parental caring responsibilities for the child: adoptive
parents, legal guardians, those with court orders providing daily care responsibilities,
foster parents, kinship carers.
The leave can be taken in one block or as two one week blocks and will be paid at
the same statutory rate as other family friendly rights if the employee has 26 weeks’
service. If the employee has under 26 weeks’ service the time off will be unpaid.
National Minimum Wage Rate Increases
The Government will increase the National Living Wage (NLW), which applies to
workers aged 25 and over, from £8.21 per hour to £8.72 from 1st April 2020.
At the same time, the National Minimum Wage (NMW) rates will be increased as
follows:
• from £7.70 to £8.20 to per hour for 21 to 24 year olds;
• from £6.15 to £6.45 per hour for 18 to 20 year olds;
• from £4.35 to £4.55 per hour for 16 & 17 year olds; and
• from £3.90 to £4.15 per hour for apprentices;
Increased Statutory Rates
Statutory Sick Pay weekly rate is expected to increase from 6th April 2020:
• from £94.25 to £95.85
Statutory Maternity Pay the current weekly rate is £148.68 or 90% of the
employee’s average weekly earnings if this figure is less than the statutory rate.
From 5th April 2020 the rate is rising to:
• £151.20
From 5th April 2020, the rates of Statutory Paternity Pay, Statutory Adoption Pay
and Statutory Shared Parental Pay will also go up:
• from £148.68 to £151.20 (or 90% of the employee’s average weekly earnings
if this is less than the statutory rate).
The rates for Statutory Redundancy Pay, Statutory Guarantee Pay, Lower and Upper
Earning Levels and Tribunal Awards are not yet announced; we will send an update
as soon as the new rates are published.
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