Don’t be caught out by changes to employment law due this month, Bill Dhariwal highlights the key reforms

Key Employment Law Changes in April 2020

Below is a brief summary of a number of reforms to employment law due this month.

Postponement of IR35

Businesses will now have until 06 April 2021 to prepare for the new IR35 off payroll working regime.  This policy is designed to ensure that those working through their own limited company pay the same or similar amount of tax as employees.

Clearly, any status determinations already undertaken should now be re-considered.

Written Statement of Terms of Employment

From 06 April 2020, employers will need to provide a written statement of terms of employment on or before the first day of employment.

The previous rules permitted a two-month period for employers to provide written terms.

The regulations now stipulate that an employer must include details of all remuneration and benefits, the duration of the job, the notice period and specific days and times of work.

Increase in the National Living Wage (NLW) and the National Minimum Wage (NMW)

From 01 April 2020, the NLW for workers aged 25 and over will increase from £8.21 to £8.72.  NMW rates are also set to increase from 01 April 2020 with workers aged 21 to 24 seeing an hourly increase to £8.20 and workers aged 18 to 20 seeing an hourly increase to £6.45.

Apprentice rates for those aged 19 and those in the first year of an apprenticeship will increase to £4.15.

Bereavement Leave

From 06 April 2020, parents of recently bereaved children under the age of 18 or still born after 24 weeks of pregnancy will have a statutory right for time of work.  

The period of time is one week, two continuous weeks or separate weeks of work any time in the first 56 weeks after the death or still birth.

The legislation applies to parents, adoptive parents, prospective adopters, intended parents under a surrogacy arrangements and applicable partners.

Those taking parental bereavement leave are also entitled to parental bereavement pay which will be the equivalent of statutory maternity pay.

Employment Tribunal Awards

From 06 April 2020, the maximum compensatory award for unfair dismissal will rise to £88,519 and the maximum amount of a weeks’ pay (used to calculate statutory redundancy pay) will rise to £528.

Increased Statutory Pay Rates

From 05 April 2020, the statutory rates for maternity pay, paternity pay, adoption pay and shared parental leave pay will increase to £151.20 per week or 90% of the employee’s weekly earning if this is lower.

Statutory sick pay will also increase from 06 April 2020 to £95.85 per week.

Holiday Pay Reference Period

From 06 April 2020, the holiday pay reference period will increase to 52 weeks. Employers will now be mandated to calculate average weekly pay for holiday pay purposes across a 52-week period rather than a shorter 12-week period.

This means that those workers who are required to take annual leave at a quieter time of the year when their weekly pay is lower are no longer disadvantaged.

Further Information

For further information regarding the above reforms or any other issues regarding employment law whether you are employer or an employee, please do not hesitate to contact our Mr Bill Dhariwal, Managing Director, Lawcomm Solicitors, DDI: 01489 864 117, E: bill.dhariwal@lawcomm.co.uk

Please note: The above article was written on 06 April 2020 and does not constitute specific legal advice.