Planning for changes in Employment Law for 2020

2020 is another year of changes to the world of employment law and HR. In this blog, we are talking about some of the changes that we know are already going to happen, and, of course, that much discussed and debated subject that is Brexit.

Written Statement of Terms and Conditions (Contracts)

First up, we have the Written Statement of Terms and Conditions, also known as a Contract.

Currently, an employer has up to eight weeks to supply Terms and Conditions of Employment to all employees who have been continuously employed for more than one month.

From 6th April 2020, all new employees and workers will have the right to a Statement of Written Particulars from their first day of employment. Additional information will also need to be included as part of this new extended right.

Employers will need to prepare for this change during their recruitment process and have the Employment Contract sent to their chosen candidate before ‘day one’ of employment.

Employers will also need to consider who will qualify as a worker, and issue Employment Contracts to employees whilst using a separate template when issuing particulars for workers.

 

Parental Bereavement Leave and Pay

There is currently no law regarding bereavement leave and pay for parents.

The Parental Bereavement (Leave and Pay) Act 2018 is due to come into force in April 2020. However, this has not yet been confirmed.

If it does come into force, parents who suffer the loss of a child under the age of 18 years or a stillbirth after 24 weeks’ of pregnancy, will have the right to two weeks’ bereavement leave and, in some cases, pay.

We have not yet received any details of the new entitlement or those who will qualify and these will be set out in separate regulations.

However, we do know that bereaved parents will be entitled to take this leave in one two-week block or in two separate blocks of one week and that the leave must be taken before the end of a period of at least 56 days beginning with the date of the child’s death.

Bereaved parents who have been continuously employed for a minimum of 26 weeks will also be entitled to receive Statutory Parental Bereavement Pay. Parents with less than 26 weeks’ continuous service will be entitled to take two weeks’ of unpaid leave.

 

Agency Worker Rights

There are three important changes to Agency Worker Rights which will come into effect on 6th April 2020: –

  • Currently, the Agency Worker Regulations 2010 entitles agency workers to receive the same pay and basic working conditions as direct employees once they have completed 12 weeks’ continuous service working in the same role.

Under the Swedish Derogation (sometimes referred to as ‘pay between assignments’ contracts), agency workers are able to agree to a contract which removes this right.

From 6th April 2020, the Swedish Derogation will be abolished and these contracts will no longer be permissible. All agency workers, after 12 weeks’ continuous service, will be entitled to the same rate of pay as their permanent coworkers;

  • From 6th April 2020, all agency workers will be entitled to receive a Key Information Statement which sets out more clearly what their employment relationship is and the terms and conditions with their agency;
  • From 6th April 2020, all agency workers who are considered as employees will be protected from unfair dismissal and/or suffering a detriment if the reasons are in relation to asserting rights linked to The Agency Worker Regulations 2010.

 

Holiday Pay Calculations

The current way to calculate holiday pay can be complicated, especially for those employees with variable hours and variable rates of pay. The current holiday pay reference period is 12 weeks.

From 6th April 2020, this holiday pay reference period will increase to 52 weeks, meaning that employers will need to look at the previous 52 weeks where a worker has worked and received pay (disregarding any weeks when the worker did not work or where no payment was received) in order to calculate the average weekly pay.

 

National Minimum Wage Amounts

National Minimum and Living Wage amounts always change in April of each year and 2020 is no different.

The current rates are as follows: –

Age Rate

25 years and over £8.21

21 to 24 years £7.70

18 to 20 years £6.15

Under 18 years £4.35

Apprentice £3.90

From 6th April 2020, these rates will change, as follows: –

Age Rate

25 years and over £8.72

21 to 24 years £8.20

18 to 20 years £6.45

Under 18 years £4.55

Apprentice £4.15

 

Brexit

First of all, we all know that the UK is due to leave the European Union at midnight on Friday 31st January and when this happens, it is likely to bring about changes to the way the employment law world works, although any changes are unlikely to happen straight away. However, businesses will still need to be prepared.

At the moment, existing legislation and case law still applies and will continue to do so until new legislation is brought in.

Whether or not the UK is able to withdraw from current EU legislation and requirements will, ultimately, depend on the UK’s relationship with the EU and other countries. It is possible that trade agreements with other countries will be based upon some if not all, current EU employment legislation.

Any changes that do come into force will not necessarily be immediate or even significant, for the following reasons: –

  • A lot of EU employment law is based on UK legislation, meaning these will remain in place until amended;
  • Many UK employment rights, such as National Minimum Wage Amounts and unfair dismissal rights, do not arise from EU legislation.
  • In many other cases, UK legislation provides protection which far exceeds the EU minimum, for example, maternity leave and the right to 5.6 weeks’ holiday (EU law states a four-week minimum).
  • Changes to primary legislation need the approval of Parliament, and so the Government at the time of any changes will need to consider whether any amendments are politically favourable.

If you have any questions or queries about anything in this blog, or if there is anything employment law or HR related that you need help with, please get in touch with us by emailing info@orchardemploymentlaw.co.uk