2019/2020 EMPLOYMENT LAW CHANGES 

Published 3 April 2019

There are a number of legislation changes taking effect from 6 April 2019 that you need to be aware of.

We will also be outlining some of the changes that are taking effect from April 2020, this will give you plenty of time to prepare and let you know what is coming your way.


FROM APRIL 2019

STATUTORY PAYMENTS AND HOURLY RATE INCREASES

A number of statutory payments and allowances will be increasing, please see the table below for details:

ADDITIONAL CHANGES

The accommodation offset - this increases to £7.55 a day (from £7.00). This is for each day when accommodation is provided during the pay period.

Statutory guarantee pay - the daily rate will increase to £29 (from £28) or a normal day's pay, whichever is the lower, payable for the first 5 workless days (or the normal number of days worked in a week if less than 5) in any 13 week period.


INCREASE IN THE MINIMUM PENSION CONTRIBUTION RATES
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​The rates are increasing to 3% for employers and 5% for employees.

KEEPING UP WITH PAYSLIP RULE CHANGES

There have been some changes in the law around payslips, please see below for details:
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1) Employers will now have to deliver itemised payslips to every worker on their payroll, not just to its employees (as is the current requirement).

This includes payslips for any employees, agency staff, casual staff, zero hours staff, contractors, freelancers and any other types of 'non-employee' workers on the payroll.


2) If an employee works varying hours each week, those hours must now be shown on their payslip together with the hourly rate they are to be paid at.


​It is important to take steps to ensure that you will comply with these new payroll laws post-April 2019.



​FROM APRIL 2020

EXTENSION OF THE RIGHT TO A WRITTEN STATEMENT OF PARTICULARS OF EMPLOYMENT

Employers are currently required to provide a written statement setting out the basic terms of employment to all employees whose employment lasts for one month or more. This must be provided within two months of the start of their employment.

What's changing? - from 6 April 2020, this right will apply from day one to all employees and workers.
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INCREASE IN THE PERIOD OVER WHICH HOLIDAY PAY IS CALCULATED

Currently, the holiday entitlement of a worker who has irregular working hours is calculated by averaging the number of hours worked over the previous 12 weeks (known as ‘the pay reference period’).

What's changing? - from 6 April 2020, the pay reference period will be 52 weeks (for the workers who have been working for less than 52 weeks, it will be the total number of weeks they have worked). This change is designed to avoid workers losing out where their working hours are subject to fluctuations such as seasonal variations.
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INCREASE IN THE 'BREAK OF SERVICE' PERIOD

A gap of one week or more is currently sufficient to break the continuity of service (unless legislation dictates that continuity is preserved for a longer period such as redundancy and incapacity dismissals)

What's changing? - from 6 April 2020, the gap required to break the continuity of service will increase to 4 weeks. This will make it easier for employees with irregular working patterns to accumulate continuity of service.


PROTECTION FOR AGENCY WORKERS

Agency workers are currently entitled to be paid the same rates as permanent employees after 12 weeks (unless there are specific contractual arrangements under which they receive a minimum level of pay when they are between assignments, known as the ‘Swedish derogation’ model).

What's changing? - to increase protection for agency workers, this distinction will be abolished from April 2020 and the right to comparable pay will apply to all agency workers after 12 weeks.


CHANGES TO COME IN THE FUTURE

Right to request a 'stable' contract - the government have committed to introducing a right for all employees and workers to request a more stable working pattern (having acquired at least 26 weeks’ service).

Employment status - the employment law definitions of employee, worker and self-employed are not aligned with the approach HMRC takes when determining employee status, causing confusion for businesses. The government have indicated that they will introduce a new test to identify employment status which would be supported by online tools to help employers correctly define their working relationships.


Please contact our payroll department on 01254 300 050 if you have any questions.

​​Click here to meet our payroll team and see how you could benefit from Mayes running your payroll.