Take a look at the changes to employment law coming into effect in April 2020
Changes to written statements
From 6th April 2020, the requirement to provide a written statement of terms and conditions extends to workers. This includes casual and zero-hours workers.
The legal right to a statement not anymore demands a minimum amount of service and applies from the worker’s first day doing work for the business.
Additionally, there are changes on the info that the written statement must contain. Companies should guarantee workers that start on or after 6th April 2020 are given compliant written statements on or before they begin working.
Gender pay gap reporting deadline
The deadline for employers to post their third gender pay gap report is 4th April 2020, while public-sector employers must release their third report no later than 30 March 2020.
The gender pay gap report must show up on the employer’s website in a publicly obtainable manner and, as soon as publicised, must remain there for at least 36 months.
Employers also need to upload the gender pay gap results to the Government’s website that reports these figures.
Commentary on the gender pay results is not required. However, many organisations are choosing to add a narrative to support to set their numbers in context, notably where there is a wide gender pay gap.
Failure to report by the required timeline may adversely affect your organisation’s standing not only concerning current and potential employees, but also clients and competitors.
The minimum wage increases
Organisations should make sure that staff are getting paid no less than the national minimum wage.
The living wage for workers aged 25 and over increases to £8.72 per hour on 1st April 2020.
Other national minimum wage rates also increase on 1st April 2020. Pay per hour rising to £8.20 for workers aged 21 to 24, to £6.45 for workers aged 18 to 20 and £4.55 for workers aged 16 or 17.
Organisations must keep ample information of all payments to be able to demonstrate that their organisation has complied with the national minimum wage policies.
Family-related pay and statutory sick pay increases
The weekly amount of statutory maternity, paternity, adoption and shared parental pay increases to £151.20 from 5th April 2020.
The weekly amount of statutory sick pay increases to £95.85 from 6th April 2020.
It is in the hand of the organisations to make specific staff on maternity, paternity, adoption, shared parental leave, and sick leave are paid these statutory minimum rates.
Businesses must also review their policies and documents that speak about the rates, such as their maternity policies and sickness absence procedures.
With the ongoing coronavirus, the Government has declared that it will launch measures wanting employers to pay statutory sick pay from the first day of an employee’s sickness, rather than after three waiting days. Firms should monitor the situation to be sure employees are paid at the appropriate time.
Unfair dismissal compensation
The highest compensatory award for unfair dismissal increases to £88,519 for dismissals that take place on or after 6th April 2020.
Changes to statutory redundancy pay calculations
Brand new limits on employment statutory redundancy pay come into force on 6 April 2020. Companies that dismiss employees for redundancy must pay people with two years’ service an amount based on the individuals weekly pay, length of service and their age. Their weekly pay is subject to a maximum amount. This amount is £538 from 6th April 2020.
Businesses should guarantee that calculations for statutory redundancy payments are made based on this maximum amount for redundancy dismissals on or after 6th April 2020.
Changes to holiday pay calculations
On 6th April 2020, the holiday pay reference period for workers without regular working hours raises from 12 weeks to 52 weeks.
Organisations will need to adjust how they calculate holiday pay for workers with irregular hours. Your organisation’s holiday policy may also require adjusting if it refers to the holiday pay reference period.
Companies must also look at the contracts of employment of workers with irregular working hours to ensure, where the reference period is stated, it is updated with the new period.
Certain agency workers must receive equal pay
On 6th April 2020, the ability for employers to pay agency workers less than their employee’s in certain circumstances is abolished.
Agency workers currently can exchange their right to be paid the same as directly recruited employees for a contract guaranteeing pay between assignments. Following the abolition, Companies must ensure those agency workers who have completed the 12-week qualifying period are paid equally to other staff.
Bereaved parents of a child who dies on or after 6th April 2020 have got a new right to take up to two weeks’ parental bereavement leave with pay at a statutory minimum rate.
Companies should review their organisation’s guidelines and procedures now to make sure that they contain time off for bereaved parents. Organisations must communicate these policy changes ideally by 3rd April 2020.
Line managers will also need guidance on how to manage parental bereavement leave.
Do you need help understanding what these new employment law changes mean for your business? Contact Beagle HR to assist you