04 May Quick reminder of recent changes in Employment Law
We have all been busy of late dealing with other more pressing matters. Keeping up to date with recent changes in employment law may have, understandably, gone by the wayside. Below we have summarised key changes for you in a short handy guide.
As always, if you need any advice or further information we are available to help. Whether that is to discuss how these changes might impact your company or what steps you need to put in place to ensure compliance with the new calculations of holiday pay and national minimum wage. Whatever your query, we are happy to help and you can email the team at email@example.com or call us on the number above.
National Minimum Wage and National Living Wage Increases – applicable as of 1st April 2020
The National Minimum Wage (Amendment) Regulations 2020 increase the National Minimum Wage and National Living Wage to the following rates:
25 years old and over £8.72
21 years to 24 years old £8.20
18 years to 20 year old £6.45
Under 18 years old £4.55
*Apprentices are entitled to the apprentice rate above if they’re either:
- under 19
- 19 or over and in the first year of their apprenticeship
Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the correct minimum wage for their age.
Statutory Sick Pay and Statutory Maternity, Paternity, Shared Parental and Adoption Leave rates – applicable as of 5th April 2020
The Social Security Benefits Up-Rating Order 2020 increases statutory sick pay (SSP), maternity pay, paternity pay, adoption pay and shared parental leave rates from the 5th April 2020 as follows:
- Statutory sick pay rates will increase to £95.85 per week; and
- Statutory maternity, paternity, adoption and shared parental leave pay rates increase to £151.20
Changes to calculating holiday pay – applicable from 6th April 2020
There has been an increase in the reference period for determining an average week’s pay (for holiday pay purposes) from 12 weeks to 52 weeks, or where the worker has less than 52 weeks continuous employment, the complete weeks for which the worker has been employed.
The changes in calculating holiday pay applies to workers without fixed hours or pay only.
Agency Workers Terms – applicable from the 6th April 2020
End of “Swedish derogation”
The “Swedish derogation” contracts used by agencies (allowing avoidance of AWR parity of pay between agency workers and present employees) was removed thus, the “Swedish Derogation” is removed from the AWR – (it allowed agencies to avoid pay parity between agency workers and direct employees if certain conditions are met). Agencies must have informed all relevant agency workers by 30 April 2020 that such Swedish Derogation no longer applies.
Provision with Key Information document
Temporary work agencies must provide agency work-seekers with a Key Information document:
– information on the type of contract;
– minimum rate of pay; and
– how they will be paid and by whom.
Written statement of terms – applicable as of 6th April 2020
All workers (often know as Bank Staff, Zero Hours Workers, Casual Workers, etc) were given the right to a written statement of terms under the Employment Rights (Miscellaneous Amendments) Regulations 2019.
Information and Consultation of Employees update – applicable as of the 6th April 2020
A Government believes that having high levels of engagement with employees leads organisations to have increased organisational performance and productivity. The Information and Consultation of Employees Regulations 2004 has now had the thresholds required for a request to set up information and consultation arrangements lowered from 10% to 2% of employees subject to the existing minimum of 15 employees by the Employment Rights (Miscellaneous Amendments) Regulations 2019 (SI 2019/731).
We anticipate in more organisations needing to get ahead of any employee movement to petition them to consider formal arrangements such as a Works Council – you can take steps now to take control of this and engage your employees email us if you want to discuss your options at firstname.lastname@example.org
Termination payments taxation changes – applicable from the 7th April 2020
All termination payments above the £30,000 threshold are now subject to class 1A NICs.
Parental Bereavement (Leave and Pay Act) 2018 – applicable from the 6th April 2020
The Parental Bereavement (Leave and Pay) Act 2018 took effect effectively giving bereaved parents an entitlement to leave and statutory pay following the death of a child or a still birth. Qualifying conditions apply as do statutory rates of pay. Look out for more information coming from us on this shortly….
Emergency measures following Covid-19 – applicable as of March 2020
And, as we are now all hopefully aware of the emergency measures implemented due to the pandemic including:
– new rules on statutory sick pay;
– relaxation of holiday carry-over rules; and
– the government-funded furlough scheme to prevent job losses.
For further information please email us for guidance or with any specific questions: email@example.com