Employment law changes for April 2020

Development

Overview

Implementation Date

   

Increase in holiday reference period from 12 weeks to 52 weeks

 

The reference period used for determining a week’s pay when calculating holiday pay for workers with irregular hours will increase from 12 weeks to 52 weeks. The changes are designed to allow greater flexibility for workers in choosing when to take holiday, particularly for those in seasonal or atypical roles that limit some workers from benefiting from their full holiday pay entitlement.

 

6 April 2020

Reform to intermediaries legislation (IR35) is extended to private sector

To increase compliance with the existing off-payroll working rules (known as IR35), medium and large organisations in all sectors of the economy will become responsible for assessing the employment status of individuals who work for them through their own limited company. The reform does not introduce a new tax or apply to the self-employed, who are outside the scope of the existing rules. Small businesses are exempt.

6 April 2020

Abolition of the Swedish derogation relating to pay for agency workers

The Swedish derogation gives employers the ability to pay agency workers less than their own workers in certain circumstances. Under the derogation, agency workers can exchange their right to be paid the same as directly recruited employees for a contract guaranteeing pay between assignments, but this has been misused by some employers. The legislation banning this type of contract is intended to prevent agency workers losing out on their equal pay rights.

 

6 April 2020

Extension of the right to a written statement of particulars to all workers

Workers will be entitled to a contract of employment or at least a statement of written particulars as well as employees and this will be a day one right for all workers (including employees). Employers will also have to provide additional information as mandatory content for a written statement.

 

6 April 2020

Parental bereavement leave rights take effect

Employees will be entitled to at least two weeks’ leave following the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnancy. Employees with 26 weeks’ continuous service will be entitled to paid leave at the statutory rate and other employees will be entitled to unpaid leave.

 

April 2020

Change to tax treatment of termination payments above £30,000 introduced

Employers will be liable to pay Class 1A national insurance contributions on termination payments above £30,000 that are subject to income tax by the employee.

 

April 2020

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