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.

This site uses cookies to improve user experience. To find out more, please see our privacy policy. By continuing to use this website you agree to our use of cookies. Privacy Policy

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close