Are you aware that there will be some significant changes to employment legislation coming into force in April 2020. While it’s still six months away, it’s important that employers get their houses in order well in advance as the new laws could potentially have a major impact on businesses, particularly ones that employ seasonal workers. We’ve created a checklist of the most pertinent reforms and actions that you need to take.
Review your employment terms and conditions
When was the last time that you reviewed your employee contracts? Current legislation allows employers up to two months to provide terms of employment to their new staff members who have been with them for longer than a month. From April 2020 they will have to supply them from the first day on the job.
Additionally, terms of service now cover contract workers, so if you have people supporting your business on fixed term contracts, they will also need a written statement from day one.
This isn’t such a bad thing though and is a great excuse to dig out employment contracts, assess whether they are still fit for purpose, and reissue them. You could use the time to review your HR policies as well.
Changes in holiday pay calculations and continuity of employment
Holiday pay calculations will also be changing in April. This will particularly affect seasonal workers and staff who may work longer hours during different periods of the year, for example hospitality workers.
From next year the reference period for determining an average week’s pay will extend from 12 weeks to 52 weeks.
From a positive perspective, this will mean that holiday pay for workers who are contracted for changeable hours, will be less affected by seasonal pay variations. It’s a good idea to begin preparing in advance, speak to an HR specialist and also check in with your accountant.
The break between periods of employment required for continuity of service will also change. The current one week break will be extended to four weeks from April next year. This will have an impact on temporary worker rights, meaning that it will become easier for them to accrue two years qualifying service. This qualifying period is needed for workers to engage in unfair dismissal proceedings.
Employers who employ workers on temporary assignments need to ensure that they closely track their work and take care in how they end temporary assignments if the worker has two years qualifying service. Another reason to check and update your contracts and procedures.
IR35 hits the private sector
IR35 is basically a tax rule that’s been designed to reduce tax avoidance by businesses and contractors. If you employ off-payroll workers working through personal service companies, you could be affected.
From 6 April 2020, it will be the responsibility of medium and large private sector businesses to assess the employment status of all their off-payroll workers. HMRC have stated that they are prepared to collect back taxes as well as income tax for the year to date.
For businesses that fall into the IR35 category it’s worth checking HMRC’s guidance, but you will also need to have a conversation with any of your contractors about whether the off-payroll rules will affect them. The sooner you address and confirm whether you will be affected by IR35 the better.
Introduction of Parental Bereavement Leave
2020 will also welcome the Parental Bereavement Leave Act, which entitles any employee who loses a child under 18 or experiences a stillbirth after 24 weeks, to two weeks unpaid leave. While we would imagine that most employers already implement humane and thoughtful bereavement policies, it’s still important to check your policies to ensure that this new Act is incorporated and they are up to date.
The team at Dakota Blue Consulting always recommend speaking to an HR specialist about any new employment legislation. We can also help you to implement any changes, ensuring that you won’t be caught out in April. Get in touch with us for advice on how you and your staff could be affected.