Employment Law: What changed on April 6th? | May 2020

Employment Law: What changed on April 6th? | May 2020

There are key changes in employment law at the start of April every year and in this month's update, we bring all of this year’s changes into one place for you.

So, what changed on 6th April 2020?

Annual leave

As part of the Good Work Plan, the government lengthened the reference period for determining an average week’s pay from 12 weeks to 52 weeks. Often known as a ‘reference period’. The reform is intended to improve the holiday pay for seasonal workers, who tend to lose out over the way it is currently calculated.

Statement of Particulars 

Again, as part of the Good Work Plan, both employees and workers must receive a statement of ‘written particulars’ (basic employment terms and conditions) as a day one right.

Information and Consultation

The threshold for making a valid request to set up information and consultation arrangements under the ICE Regulations 2004 drops from 10% to the 2% of the workforce. There still needs to be 15 employees making the request. These regulations apply to businesses with 50 or more employees in the UK, and these changes are also being introduced under the Good work plan’.

National Minimum Wage

There are several changes in this category –

  • Broadening the definition of ‘salaried hours workers’ (those receiving an annual salary in equal instalments for a set number of contracted hours) to include fortnightly and 4-weekly payment cycles.
  • Ensuring salaried workers can be paid premiums (for working on Bank Holidays, for example) without this affecting their entitlement to the national minimum wage on other days.
  • The government is also promising better guidance on the NMW, more compliance support for small businesses, and a helpline for employers operating salary sacrifice or other pay deduction schemes.

Tribunal compensation limits increase from 6 April 2020

The new rates are:

  • Limit on guaranteed payments – £30
  • Limit on a week’s pay – £538
  • Maximum basic award for unfair dismissal and statutory redundancy payment – £16,140
  • Minimum basic award for unfair dismissal – £6,562
  • Maximum compensatory award for unfair dismissal – £88,519

Parental Bereavement (Leave and Pay) Act 2018  

The Act gives employees who lose a child under the age of 18 or suffer a stillbirth from the 24th week of pregnancy, on or after this date, the right to two weeks’ leave. The leave will be paid at the same statutory rate as other family friendly rights if the employee has 26 weeks’ service.

Our recommendations:

It is important to review your HR policies and practices, to ensure that these changes and updates are fully incorporated.

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