KR HR & TRAINING NEWS ARCHIVE

April brings a number of changes that employers need to know about, including changes to statutory pay rates and a number of changes around how you issue contracts. We’ve also included links to further resources for those of you who are concerned about how the ongoing Brexit negotiations may affect your workforce. 

CONTRACTS: From April 2020, there are some significant changes around when you issue contracts, what information you provide and who is entitled to receive a contract. One of the key changes is that all workers must receive a written statement outlining their key terms of employment by no later than their first day, rather than within first 8 weeks. For further details see our guide to contracts. If you have not had your employment contracts reviewed recently, now is a good time to get them checked so you can be ready ahead of the April deadline.

PAY INCREASES: The rates for national living wage and the minimum wage are increasing from 1ST APRIL 2020. Workers are entitled to these rates for all working hours, including whilst attending training or travelling between work locations (not commuting). It’s worth also noting that the voluntary living wage, which is based on the real cost of living, is now £9.30 (or £10.75 in London). This scheme can help you to attract and retain staff – for further information see the Living Wage Foundation. 

STATUTORY BENEFITS: Rates for statutory maternity, paternity, shared parental leave and adoptive leave pay will increase marginally from £148.68 to £151.20 (or 90% of earnings) from 5th April 2020. Plus statutory sick pay is to increase from £94.25 to £95.85 from 6TH APRIL 2020 (lower earnings limit to be confirmed). 

HOLIDAY PAY: From 6th April 2020, holiday pay for staff working variable hours needs to be calculated based on a 52 week reference period. 

IR35 (OFF-PAYROLL WORKING): large and medium sized organisations in the private sector who engage contractors through intermediary companies will be responsible for assessing the employment status of those contractors from April 2020. This will impact how tax is paid in relation to contractors earnings. The detail of this implementation is still being finalised, so it is worth referring to the Government’s Off-Payroll Working guidance pages for the latest information. As things stand currently, small businesses are expected to be exempt from this requirement. To be classed as small, two out of the following three conditions need to be met:

•  Employing less than 50 staff
•  Annual turnover of less than £10.2 million
•  Balance sheet total under £5.1 million

BEREAVEMENT LEAVE: Paid parental bereavement leave will be introduced from April this year. The new Parental Bereavement Leave and Pay Act will give all employed parents a day-one right to 2 weeks’ leave if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy. Employed parents will also be able to claim pay for this period, subject to meeting eligibility criteria. The statutory rate of pay is to be confirmed.

BREXIT

The UK left the EU on 31st January 2020. For further information and resources, see the CIPD’s Brexit Hub. This website is being continually updated, so is a useful place to start if you would like further information on how Brexit may affect your workforce.

It’s worth noting that much of the UK’s employment legislation stems from UK-based rights, however we will have to wait and see whether future governments wish to stem some of the EU-based rights, such as those around parental leave, working time, TUPE and holidays.

We hope you have found this guide helpful. For further information or assistance with ensuring your business is compliant, contact Kathryn Fairlie HR & Training Consultancy on 01249 701486.

A HR HEALTH CHECK FROM KATHRYN FAIRLIE HR & TRAINING CONSULTANCY will provide you with a detailed overview of whether your contracts, processes and policies are legally compliant, whether they protect your business sufficiently and whether you have the right people practices in place to meet your business goals, including recruiting, training and managing the performance of your people effectively. At the end of the review, you will receive a detailed report and action plan to get your people practices into the best shape for 2019 and beyond.