Employment Law Changes 2020 - Laura Murphy Nicola Sheridan Vicky - - PowerPoint PPT Presentation

4th March 2020 1

• Employment Law Changes 2020

The Presenters…

Laura Murphy Nicola Sheridan Vicky Clarke

• Q&A Session

Questions Tab

Q&A

On Demand This session is being recorded

REC

Agenda

Good Work Plan: Written Particulars

• f Employment

Good Work Plan: Calculation of Holiday Pay Good Work Plan: Agency Workers Parental Bereavement Leave Termination Payments Minimum Wage Changes IR35

4th March 2020 2

• The Good Work Plan

The Good Work Plan

1.3 million people in the gig economy Employment law must keep pace

Written Particulars of Employment are changing

What

Prescribed information in a single document with the option

• f providing other pieces of information separately

Most of the information under the current regime PLUS additional prescribe information in a single document

When

Within 2 months of starting employment By day 1 of the employee / worker starting

To Whom

Employees with 1 month min. term All employees & WORKERS. No min. term

Information currently required

Names of employee and employer Date of commencement Rate of remuneration and method of calculation Intervals at which remuneration is paid Hours of work Holiday accrual and pay and bank holidays Terms relating to sickness and sick pay – may not be provided in installments as before Length of notice - may not be provided in installments as before Job title If temporary contract, expected duration - may not be provided in installments as before Place of work Terms if working outside the UK

4th March 2020 3 Additional Information to be included

üDays of the week to be worked üWhether hours of work are variable üIf variable, how they are determined üProbation period (where appropriate) üEntitlement to other types of paid leave üAdditional remuneration / benefits üRequired training

To be provided in installments

üPension schemes üCollective agreements affecting the contract üTraining that the employer will provide üNote about disciplinary and grievance procedures

Employees vs. Workers

• Written terms will differ

Employees

• “employer”, “ Employee”

Worker

• “casual”, “freelance”, ”as required”, “zero- hours”
• No probation clause

Employees

üThey can’t send someone else to do their job üEmployer deducts tax & NI üThey get paid holidays üEntitled to contractual or Statutory Sick Pay / Maternity, Paternity üCan join company pension scheme üDisciplinary and grievance procedures apply

4th March 2020 4 Workers

üthey occasionally do work for a specific business üthe business doesn’t have to offer them work and they don’t have to accept it ütheir contract with the business uses terms like ‘casual’, ‘freelance’, ‘zero hours’, ‘as required’ üwhen working, they are under the supervision or control of a manager or director üthey can’t send someone else to do their work üthe business deducts tax and National Insurance contributions from their wages üthe business provides materials, tools or equipment they need to do the work

Workers are not entitled to

vMinimum notice periods vProtection from unfair dismissal vThe right to request flexible working vTime off for emergencies vStatutory redundancy pay

Points to Note for your business

üReview your standard written terms üNo requirement to update existing contracts üAt the request of an employee, an updated contract must be provided within 1 month üFines for failure to comply üReview your practices

Bright Contracts

4th March 2020 5

• 2. Holiday Pay Reference Period

ü Reference period increased from 12 to 52 weeks ü Weeks with no pay wi will not count towards the 52-week average üWhere there is less than 52 weeks service, count as many full weeks as possible üContractually obliged overtime must be included

• 3. Agency Worker
• Removal of Swedish Derogation
• Pay parity after 12 weeks
• Parental Bereavement Leave

Parental Bereavement Leave

• 2 weeks bereavement leave
• A day one right
• Payment:
• 26 weeks continuous service
• Lower of: £151.20 or 90% of salary
• One block of two weeks or two separate one week blocks
• Use within 56 weeks of the child’s death

4th March 2020 6 Employer Considerations

üYou are not entitled to request a death certificate üBe clear on how much detail the employee wants colleagues to know üMaternity leave is protected üBe cognizant of different religions and traditions üBe supportive to the individual’s needs üBe cognizant of additional health issues

• Termination Payments

Termination Payments

• Termination payments in excess of £30,000 will be liable for:
• Income tax

and

• Cl

Class 1A NIC

• Paid through RTI
• NIC liability on sporting testimonials
• Minimum Wage

4th March 2020 7 Minimum Wage Rates

Rates from 1 April 2019 Rates from 1 April 2020 25 years old and over £8.21 per hour £8.72 per hour 21 – 24 years old £7.70 per hour £8.20 per hour 18 - 20 years old £6.15 per hour £6.45 per hour 16 -17 years old £4.35per hour £4.55 per hour Apprentices under 19 or 19 or

• ver who are in the first year of

apprenticeship £3.90 per hour £4.15 per hour

• Maternity / Adoption / Paternity / Shared Parental / Parental Bereavement Leave: £151.20
• Statutory Sick Pay: £95.85
• IR35

IR35

Contractor Intermediary / Personal Services Company Client / Employer From April 2020 responsible for deciding tax status Pre April 2020 responsible for deciding tax status

Who Does it Apply to

Small business qualifying conditions:

• Annual turnover of not more than £10.2 million
• A balance sheet total of not more than £5.1 million
• No more than 50 employees

4th March 2020 8 IR35 on BrightPay IR35 on BrightPay

• Further Changes

What’s in the Pipeline?

• New, single enforcement body
• Ensuring tips go to workers
• Right for workers to request a more predictable contract
• Extending redundancy protection to prevent pregnancy &

maternity discrimination

• Extended leave for neonatal care
• Making flexible working the default

4th March 2020 9

• Questions & Answers