We’ll be busy during the rest of 2020 with a number of HR and employment law changes and in this article we look at some of the more important ones.
April 2020 changes:
New national minimum wage rates – it’s another substantial hike for minimum wage employers with increases ranging from 4.5 – 6.5%. The over 25 rate increases to £8.72. For a full breakdown, please click here.
Day 1 contracts – A new right to a written statement of terms of employment which must be given to all workers and employees on or before their first day of work. myHRdept will be happy to produce offers and contracts on retained customer’s behalf in line with the new regulations. Simply contact us here to ensure that this service is activated.
Holiday pay calculations – the referencing period for calculating average pay for holiday pay purposes moves from the current 12 weeks to 52 weeks.
Will it or won’t it? Off payroll working – some suspect this might be delayed (perhaps more likely now due to the unexpected exit of the Chancellor) but also due in April is the extension of IR35 to the private sector and the introduction of ‘off payroll worker’ status – HMRC’s new mandatory test (which the end user of the contractor will be obliged to carry out) to establish whether the ‘contractor’ is really a ‘worker’ or whether they will fall into the new ‘off payroll worker’ category. If they do the end user will be responsible for deducting tax and NICs at source. This will apply to the larger end of SME companies – its impact is expected to be substantial.
Tax on termination payments above £30K– will be subject to employers NICs from April.
Parental bereavement leave and pay – expected 6th April will be 2 weeks paid bereavement leave (at the standard statutory rate) for parents who lose a child up to 18, including still births after 24 weeks of pregnancy.
Other things to keep an eye out for (that aren’t already scheduled for an April implementation):
Sleep in shifts – the Mencap case has been heard by the Supreme Court to determine whether ‘sleep in’ workers are entitled to the minimum wage for the whole of their shift, or just the bit when they are actually working. We’re expecting a decision shortly.
Shared Parental Pay – was it discrimination to not pay male employees the same enhanced parental pay an employer paid to its female employees? ‘No it wasn’t’ said the Supreme Court on the 18th February and with that ruling the prospect of making many painful changes to already complicated shared parental policies disappeared, to a great sigh of relief at myHRdept!
Are Uber drivers actually workers? – the long running saga ends up in the Supreme Court in July to see whether they agree with the lower courts that Uber drivers are not self-employed contractors but are really ‘workers’ for the purposes of employment legislation. This might be something of a moot point if IR35 becomes a reality in April.
Tips, gratuities and service charges – New laws are expected to mandate employers to pass all tips and service charges to workers. Those in the hospitality industry will need to check their current Tronc schemes etc. will comply.
Right to request a more stable employment contract – after 26 weeks of work workers (e.g. zero hours workers) are likely to be able to request a more stable contract with the employer.
Pre and post maternity redundancy protection – women on maternity leave already enjoy special protection in redundancy situations, we are expecting new laws to extend the protection period to cover the period they are pregnant and 6 months after their return from maternity leave.
Flexible working becomes the default position – A manifesto pledge, this measure will assume that flexible working arrangements are possible unless the employer can demonstrate good reasons for why flexible working will not be suitable for a particular role.