Employment changes

A number of important changes in relation to employment law are due to come into force on 6 April 2020. These are part of the government's 'Good Work Plan'.

Employees will be entitled to receive a written Statement of Main Terms (SMT). This will include key terms of employment such as pay and annual leave entitlement. It must be given to employees no later than the commencement date of their employment. Employers currently have two months from this date to give the SMT; this period is removed from 6 April 2020.

The SMT must also contain details of any benefits, training entitlement and days of the week upon which the employee is required to work.

The SMT must be provided to 'workers' as well as employees. This is important as 'workers' includes those on zero hours contracts and casual workers – the people in the so-called 'gig economy'.

Employers will also have to calculate holiday pay using a reference period of 52 weeks (rather than the current 12 weeks).

Employees will have the right from April 2020 request a more stable working contract after they have accrued 26 weeks service.

Employers will also need to apply new tests to establish who is an employee, worker or self-employed. This is likely to mean that many who are currently self-employed will be reclassified as workers.

It is assumed that these proposals will be introduced in April 2020. Employers should therefore prepare for the introduction. It is possible that Brexit and / or a general election might delay their introduction.

To discuss this or any other employment related matter, contact us

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