Although much focus is likely be given to continuity and protection of business and employees’ over the coming weeks and months, there are a number of changes to employment law that are due to come into effect from 1 April 2020. These include changes to statutory rates of pay and other statutory policies such as Parental Bereavement Leave.
Brexit Workforce Planning
Now that the withdrawal agreement has passed the vote in the House of Commons and Brexit is due to go ahead on 31 January 2020, there is slightly less uncertainty for European Economic Area (EEA) nationals and their employers. Following Brexit, there will be a transition period until 31 December 2020, during which EEA nationals will still be able to come and work in the UK.
- Ensure that all EEA workers obtain settled or pre-settled status, to enable them to stay at the end of the transition period
- The current position is that EEA nationals who are resident in the UK by 31 December 2020 have until 30 June 2021 to make an application
- Prepare for a new immigration system
- Consider carrying out an audit of the workforce; look for potential skills gaps and consider the impact of the new immigration system. You may need to obtain a sponsor licence to recruit the staff you need from abroad
Review Your Contracts for IR35 in the Private Sector (Postponed Until 2021)
- On 17 March 2020, the government announced that it was postponing the rollout of the new off payroll working rules (known as IR35) to the private sector until 6 April 2021
- The government emphasised that this was a ‘deferral, not a cancellation’ in response to the Coronavirus situation, and that it remained committed to the policy of ensuring that those contractors working like employees pay the same tax as employees
- The IR35 rules prevent contractors working through Personal Service Companies (PCS), and performing similar roles to employees, paying less tax and NICs than if they were permanently employed by the client organisation
- From 6 April 2021, this responsibility applies to all private sector employers that in a tax year have:
– more than 50 employees
– an annual turnover over £10.2 million
– a balance sheet worth over £5.1 million.
Comply with National Minimum Wage and Other Statutory Rate Increases
- The rates for the national minimum wage will increase on 1 April 2020
- The national living wage rate, for workers aged 25 and over, will increase from £8.21 to £8.72.
- Statutory rates – hourly rates rising to (from 1 Apr 2020):
– £8.20 for workers aged at least 21 but under 25
– £6.45 for workers aged at least 18 but under 21; and
– £4.55 for workers aged under 18 who are no longer of compulsory school age
– The rate for apprentices will rise to £4.15. - Statutory maternity, adoption, paternity and shared parental pay (from 5 April 2020):
– £151.20 per week - Statutory sick pay (from 6 April 2020):
– £95.85 per week
Parental Bereavement Leave and Pay
- The Parental Bereavement Leave and Pay Act 2018 has now been passed by Royal Assent and is expected to come into force in April
- It will give all employed parents the right to two weeks’ leave if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy
- Parents will also be able to claim pay for this period, subject to meeting eligibility criteria.
New Rules on Written Statements of Particulars
- From 6 April 2020, employers must provide a written statement of employment particulars to all workers, not just to employees
- Employers will no longer have two months within which to provide the statement – most of the information must be provided in a single document by the start of employment
- The information that must be provided in the statement will be expanded to include extra information on variable working hours, paid leave other than sick pay, benefits, probationary periods and training.
Other employment changes currently under consultation for future implementation include:
- Introducing a new right for all workers to request a more predictable contract
- Extending redundancy protections to prevent pregnancy and maternity discrimination
- Allowing parents to take extended leave for neonatal care; and introducing an entitlement to one week’s leave for unpaid carers; and
- Subject to consultation, making flexible working the default unless employers have good reason not to.