4th March 2020 The Presenters… Employment Law Changes 2020 - Laura Murphy Nicola Sheridan Vicky Clarke Agenda Q&A Session Q&A Questions Tab Parental Good Work Plan: Good Work Plan: Good Work Plan: Bereavement Written Particulars Calculation of Agency Workers of Employment Leave Holiday Pay - On Demand REC This session is being recorded Termination Minimum Wage IR35 Payments Changes 1
4th March 2020 The Good Work Plan The Good Work Plan - 1.3 million people in Employment law must the gig economy keep pace Written Particulars of Employment are Information currently required changing To Whom Names of employee and employer Date of commencement Employees with 1 month min. term All employees & WORKERS. No min. term Rate of remuneration and method of calculation Intervals at which remuneration is paid When Hours of work Holiday accrual and pay and bank holidays Within 2 months of starting employment By day 1 of the employee / worker starting Terms relating to sickness and sick pay – may not Length of notice - may not be provided in be provided in installments as before installments as before Job title If temporary contract, expected duration - may not be provided in installments as before What Place of work Terms if working outside the UK Prescribed information in a single document with the option Most of the information under the current regime PLUS of providing other pieces of information separately additional prescribe information in a single document 2
4th March 2020 Additional Information to be included To be provided in installments ü Days of the week to be worked ü Pension schemes ü Whether hours of work are variable ü Collective agreements affecting the contract ü If variable, how they are determined ü Training that the employer will provide ü Probation period (where appropriate) ü Note about disciplinary and grievance procedures ü Entitlement to other types of paid leave ü Additional remuneration / benefits ü Required training Employees Employees vs. Workers ü They can’t send someone else to do their job • Written terms will differ ü Employer deducts tax & NI Employees ü They get paid holidays • “employer”, “ Employee” ü Entitled to contractual or Statutory Sick Pay / Maternity, Worker Paternity • “casual”, “freelance”, ”as required”, “zero- hours” ü Can join company pension scheme • No probation clause ü Disciplinary and grievance procedures apply 3
4th March 2020 Workers Workers are not entitled to ü they occasionally do work for a specific business v Minimum notice periods ü the business doesn’t have to offer them work and they don’t have to accept it v Protection from unfair dismissal ü their contract with the business uses terms like ‘casual’, ‘freelance’, ‘zero hours’, ‘as required’ v The right to request flexible working ü when working, they are under the supervision or control of a manager or director v Time off for emergencies ü they can’t send someone else to do their work ü the business deducts tax and National Insurance contributions from their wages v Statutory redundancy pay ü the business provides materials, tools or equipment they need to do the work Points to Note for your business Bright Contracts ü Review your standard written terms ü No requirement to update existing contracts ü At the request of an employee, an updated contract must be provided within 1 month ü Fines for failure to comply ü Review your practices 4
4th March 2020 2. Holiday Pay Reference Period 3. Agency Worker ü Reference period increased from 12 to 52 weeks • Removal of Swedish Derogation • Pay parity after 12 weeks ü Weeks with no pay wi will not count towards the 52-week average ü Where there is less than 52 weeks service, count as many full weeks as possible ü Contractually obliged overtime must be included Parental Bereavement Leave • 2 weeks bereavement leave • A day one right Parental Bereavement Leave • 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 5
4th March 2020 Employer Considerations ü You are not entitled to request a death certificate ü Be clear on how much detail the employee wants colleagues to know Termination Payments - ü Maternity leave is protected ü Be cognizant of different religions and traditions ü Be supportive to the individual’s needs ü Be cognizant of additional health issues Termination Payments • Termination payments in excess of £30,000 will be liable for: • Income tax Minimum Wage and - • Cl Class 1A NIC • Paid through RTI • NIC liability on sporting testimonials 6
4th March 2020 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 IR35 - 16 -17 years old £4.35per hour £4.55 per hour Apprentices under 19 or 19 or £3.90 per hour £4.15 per hour over who are in the first year of apprenticeship • Maternity / Adoption / Paternity / Shared Parental / Parental Bereavement Leave: £151.20 • Statutory Sick Pay: £95.85 IR35 Who Does it Apply to Small business qualifying conditions: Pre April 2020 responsible for deciding tax status • Annual turnover of not more than £10.2 million • A balance sheet total of not more than £5.1 million Intermediary / Client / Employer Contractor Personal Services • No more than 50 employees Company From April 2020 responsible for deciding tax status 7
4th March 2020 IR35 on BrightPay IR35 on BrightPay What’s in the Pipeline? • New, single enforcement body • Ensuring tips go to workers Further Changes • 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 8
4th March 2020 Questions & Answers - 9
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