Employment Briefing

6 Key Changes from April 2020

1. Changes to written statements of terms

• All workers will be entitled to a written statement, as well as employees.
• Employees and workers must be provided with their written statement on or before their first day.
• Written statements must include additional prescribed information.

Action:

– Issue written statements during the recruitment process or on Day 1.

– Update template contracts to ensure that required information is included.

2. New rights to parental bereavement leave

• A new statutory right will allow employees to take time off work following the death of a child under the age of 18 or a stillbirth.
• Parents employed in a job for 6 months or more will be able to claim statutory pay for this period.

Action:

– Prepare a new policy (or update existing policy).

3. Holiday pay reference period extended

• The reference period to calculate a ‘week’s pay’ for holiday pay purposes will be extended to the individual’s previous 52 weeks of work.

Action:

– Ensure holiday pay is calculated correctly for staff with variable pay or hours.

4. Annual increases to statutory rates

• Rates for statutory sick pay, maternity pay, adoption pay, paternity pay and shared parental pay will increase.
• The National Living and National Minimum Wages will also increase.

Action:

– Update relevant policies.

5. Termination payments

• Class 1A Employer’s national insurance contributions will be payable on termination payments which exceed £30,000.

Action:

– Be aware that termination payments will become more expensive for employers.

– Amend template settlement agreements.

6. Off-payroll rules will apply to medium/large private sector companies in relation to contractors (replacing IR35)

• Medium and large companies must determine the tax status of their contractors.
• If a contractor is taxed as an employee, the company must deduct tax and national insurance via PAYE.

Action:

– If your company falls within the scope of medium/large company, contact Russells.

Please contact our Employment Lawyers: John Reid, Nicola Tager or Charlotte Adams for advice on how to prepare for April 2020

Email: john.reid@russells.co.uk, nicola.tager@russells.co.uk, Charlotte.adams@russells.co.uk

This document is for guidance purposes only and does not constitute legal advice.