5 Employment Law Changes Coming in 2020

With Government still in the midst of Brexit complications, many employment law developments in the UK have stalled. But some important changes remain scheduled to come into effect 6 April 2020.

Right to Written Statement of Terms on Day 1

New employees and workers have the right to a written statement of terms from the first day of employment. Employers should begin preparing the written statement during recruitment and ensure the statement if provided on the first day of work.

How is this different?

Previously, employees with more than one month of employment must be provided written statement of terms within two months of hire.

IR35 Rule changes for the private sector

Medium and large businesses, with workers under contract through a Personal Service Companies (PSC), will be responsible to determine worker status under IR35. Additionally, accounting responsibility for tax and national insurance will shift to the end user (‘fee-payer’). Small businesses are not subject to the new regulation.

Employers with workers on contract from a PSC should review the new rules, their contracts and pay arrangements.

How is this different?

The PSC was previously responsible for making the IR35 determination.

Holiday pay reference period extends to 52 weeks

The holiday pay reference period will be 52 weeks and the average weekly pay calculation will not include weeks not worked or for which no pay was earned.

How is this different?

Previously the reference period was only 12 weeks and periods without work or pay were included, potentially reducing the average weekly pay.

Parental leave bereavement comes into effect
(regulations not yet published)

Parents have the right to two weeks of leave following the loss of a child under 18 or a stillbirth after the 24th week of pregnancy. The leave may be taken as one two-week period or two one-week periods prior to 56 days following the date of the child’s death. Employees with 26 weeks continuous service are also entitled to statutory parental bereavement pay. Workers with less than 26 weeks can take unpaid leave.

How is this different?

No regulations covered parental bereavement leave.

The End of Swedish Derogation

Once agency workers satisfy the 12-week qualifying period they are entitled to equal pay to workers directly engaged by the organisation.

By 30 April agencies must provide workers written notification that the Swedish derogation provision will no longer apply and by 6 April agency workers must be provided new terms under which they will work.

How is this different?

Agency workers were not previously eligible for equal pay if they were under contract of employment with the agency and paid by the agency between assignments.

Should you have any questions feel free to reach out to our help line. DLP advisors are available to answer any questions you may have at 0330 400 4495.