Employment Contract laws are changing. Do you need a review?
Posted on 11th February 2020 at 14:30
On 6th April 2020, new rules come into force regarding what written information employers have to give to employees about their terms and conditions of employment. You might give out this information as a Written Statement of Particulars of Employment, or you might call it an Employment Contract.
The rules were recommended by the Taylor Review of Modern Workplace Practices in 2017, and are set out in the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018.
Here’s a summary of what is changing, what you need to do, and how I can help you.
What is changing, what you need to do, and how I can help you.
The law now:
All employees who are expected to work more than 1 month must receive a written statement of their main terms and conditions of employment within 2 months of starting work. This can be a standalone document or part of a contract of employment.
The written statement must contain certain basic information set out in law, e.g. the names of the employer and employee, working hours and pay etc.
The law from 6th April 2020:
The written statement (contract) must be issued to all workers and employees on or before the first day of employment (workers are those who are able to accept or reject an offer of work with no penalty – typically casual workers or some zero hours workers).
The regulations include some new areas that must be included in the written statement (contract)
The hours and days of the week the individual will work, and if these are variable, how they might vary and how such variation will be decided.
Entitlement to paid leave (e.g. maternity and paternity)
Any other remuneration or benefits
Any probationary period, its duration and any conditions attached
Any training provided, including whether it is mandatory or paid for by the worker
The notice period for termination
Absence terms, including incapacity to work and sick pay
Length of temporary or fixed-term employment
Work conditions outside the UK if working abroad for more than one month
New reference period for calculating holiday pay
The reference period for calculating holiday pay for employees or workers with irregular hours is also changing. Currently holidays are based on the previous 12 weeks in which the individual was paid. This will change to the previous 52 weeks in which they were paid from 6th April 2020. Employers will need to keep records for the previous 104 weeks to cover those weeks in which employees or workers did not receive qualifying payments.
What you need to do:
Review your current recruitment documents to ensure all information required from 6th April 2020 is included (see below for how I can help you with this)
Amend your holiday calculations for people who work irregular hours/zero hours to include the new 52-week reference period, and ensure you keep records of pay for 104 weeks to enable you to calculate holidays.
Ensure from 6th April 2020 that all new starters receive their written statement (contract) before they start work with you (or at the latest on their first day of employment).
What you DON’T need to do:
There is no need to reissue contracts/written statements to all your existing employees on 6th April 2020.
HOWEVER, if an existing employee asks for a revised written statement you will need to produce a new document for them within one month of the request. So even if you aren’t planning to recruit immediately, it may be wise to review your documentation now.
Confusingly, this particular right to a revised written statement does not extend to workers. My advice is always that you should have a written agreement with everyone who works for you, in any capacity. It saves so much grief in the long run!
How I can help you:
I am offering a free, no obligation review of your existing employment contract/written statement of terms and conditions of employment.
If your documents need to be updated, I will tell you what needs to change, and quote you a fee for updating or for issuing new documents if this would be a better option for you.
To take advantage of this offer, email your existing contract/written statement of main terms and conditions of employment to me, email@example.com before 13th March 2020.
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