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.
– 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.
– 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.
– 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.
– Update relevant policies.
5. Termination payments
- Class 1A Employer’s national insurance contributions will be payable on termination payments which exceed £30,000.
– 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.
– If your company falls within the scope of medium/large company, contact Russells.
Email: firstname.lastname@example.org, email@example.com, Charlotte.firstname.lastname@example.org
This document is for guidance purposes only and does not constitute legal advice.