2020 will see a number of important changes to Employment Law. The key developments for employers are below. These will take effect from April 2020, so now is the time to ensure that action is taken to incorporate the changes in good time.
- Workers entitled to written terms and conditions – Employment Rights (Miscellaneous Amendment) Regulations 2019.
Employers will be familiar with written terms and conditions for employees, but this right is being extended to workers. Accordingly, anyone who performs work, however short the duration, must now be provided with written terms of engagement.
- Employees entitled to statement of terms of employment from day one – Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018.
Employers used to have two months to provide written terms and conditions, these will now have to be provided no later than the first day of employment. Also the weekly days and hours worked must be included in the statement (not a handbook).
- Termination payments above £30,000 to be subject to class 1A NICs – National Insurance Contributions (Awards and Sporting Testimonials Act) 2019.
Compensation payments over £30,000 will now be subject to employers' NIC as well as income tax.
- Parental bereavement leave – Parental Bereavement (Leave and Pay) Act 2018.
This is expected to come into effect in April 2020. All employed parents will be entitled to a day-one right to two weeks' leave if they lose a child under the age of 18 or suffer a stillbirth from 24 weeks of pregnancy.
- IR35 off payroll working – Finance Bill July 2019.
The passing of the bill was delayed by the general election but this is expected to come into force in April 2020. Employers will now be responsible for determining if IR35 applies. Come to our seminar on 30 January 2020 and find out more.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.