Recent and forthcoming legislation
As well as dealing with the ongoing impact of coronavirus, as a business owner you need to be aware of changes due to new employment law legislation coming into force in April 2020. Key changes affecting employers are summarised below:
Currently employees who have been continuously employed for more than one month must be provided with a written statement of terms within two months of employment commencing.
From 6 April 2020, all new employees and workers will have the right to a statement of written particulars from their first day of employment.
Additional information will have to be included as part of the extended right, such as;
- Terms and conditions relating to hours of work including normal working hours, the days of the week the worker is required to work and whether or not working hours/days may be variable (and if so, how they may vary or how the variation will be determined),
- any other paid leave,
- any other benefits (childcare vouchers, health insurance, health cash plans, food, accommodation etc where applicable),
- details of any probationary period (including its conditions and duration),
- any training entitlement provided by the employer, any training that the employee is required to complete and any mandatory training costs not covered by the employer.
Existing employees can, on or after 6th April 2020, request an updated statement of particulars from their employer. This must be delivered to the employee no later than one month after the request has been made.
This amendment to the Employment Rights Act states that a statement of particulars can no longer be delivered in instalments, but must be provided to all employees from day one of starting work and as one single document.
Statutory Parental Bereavement Pay (SPBP) From 6 April 2020, parents have a right to statutory leave if they suffer the loss of a child under the age of 18 or suffer a stillbirth from 24 weeks of pregnancy. Employed parents can claim 2 weeks paid leave for this period, subject to meeting eligibility criteria.
- Leave can be taken as a two week period or split into two separate individual weeks
- Employees can have more than one instance of SPBP at anytime
- Eligibility starts from 24 weeks of pregnancy
- Must be taken within 56 weeks of death
- 26 weeks of employment service is required for eligibility.
The Parental Bereavement Leave and Pay Regulations, which will be known as Jack’s Law
New regulations take effect from April 2020 to ensure workers in seasonal work or with abnormal working hours receive the paid holiday to which they are entitled.
From 6 April 2020 the reference period for calculating holiday pay for variable hours workers will increase from 12 to 52 weeks.
The 52-week reference period will function in the same way as the previous 12-week period:
- Employers must count back across the last 52 weeks that the employee has worked, and received pay.
- Weeks in which no pay was received will not be counted towards the 52-week average.
- In situations where employees have worked for less than 52 weeks, employers should use as many full weeks of work as possible to calculate holiday pay.
- Contractually obliged overtime worked during the reference period must also be included in holiday pay.
Calculating holiday pay for workers without fixed hours or pay – Download HMRC’s guidance here.
The government has announced it is postponing the reforms to the off–payroll working rules (IR35) from April 2020 to 6 April 2021. This is a deferral of the introduction of the reforms, not a cancellation. … The policy will be introduced on 6 April 2021 representing a 12-month delay.
The off-payroll working rules do not introduce a new tax. They are designed to ensure individuals working like employees but through their own personal service company (PSC), pay broadly the same income tax and National Insurance Contributions (NICs) as individuals who are directly employed. These rules are commonly known as ‘IR35’.
There are some important changes to these rules taking place from 6 April 2021. These changes will apply to all payments made for services provided on or after 6 April 2021. Get it right for 2021 – download HMRC’s guidance.
COVID - 19 Support Hub
COVID-19 is at the forefront of everyone’s minds at the moment. We’ve put together one place you can find the latest information and support for what you can do as a business owner to get you through this challenging time.
2020/21 Tax Card
Every year we provide our clients with a Tax Rate Card – so all the changes to legislation are handy in one place. If you’d like to order a printed copy email our team directly, a copy will be set to your address. You can download your digital copy now by clicking ‘Download Tax Card’.