New rules come into force from 6 April 2020 which make it a legal requirement for all employees and workers to be provided with a contract of employment from the first day of their employment, rather than within eight weeks of starting work, which is the case at present. It is also irrelevant how long the contract is expected to last – it must still be issued on the first day of work at the latest.
The contents of the contract itself will also need to include additional details, including:
- The hours and days of the week the individual is required to work, whether those requirements will vary and if so how and the way in which the member of staff will be notified
- Details of the probationary period including the length of it and any conditions attached
- The benefits individuals will be entitled to
- Details of the training they will have access to, including any that is compulsory or which the individual will be expected to pay for
- Their entitlement to paid leave, for example when on maternity or paternity leave or during a sabbatical or compassionate leave.
These changes will apply to anyone starting work on or after 6 April 2020. Existing staff do not need to be given new contracts. However, employees, but not workers, do have the right to request that they are given an updated contract and if their job is changed in the future they must be given a new contract with all of the new information included at the earliest possible opportunity, and at the latest within one month of the change.
Failure to issue the contract on the first day of work, or one that fails to include the required information, will mean that compensation could be awarded of up to two to four weeks’ pay per employee, capped at £525 per week.
In view of the changes, employers should ensure they have reviewed their contracts in advance of 6 April and made the necessary amendments to reflect the new law. Internal procedures should also be revised to ensure that contracts will be issued from the first day of employment for all new members of staff engaged on or after 6 April 2020.
For further information and to find out how we can help you, please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.