Employers must prepare for a range of new rates and rules, including on holiday pay, minimum wage and employment details.
It’s spring. The weather is warmer, and many of us are starting to think about time off after a hard winter. But for employers and human resources (HR) teams, March is a busy month – and not just because of the end of the tax year.
In 2020, as in other years, there are significant employment changes taking effect in April. Below, we highlight the ones most likely to affect small businesses. Ignore or overlook them at your peril.
Transparency
From 6 April, all new workers and employees will have a right on day one to an enhanced written statement of key details of their employment, including paid leave, days and hours worked, eligibility for sick leave and pay, training requirements and all remuneration.
To do: If you are currently recruiting, update your standard contracts ready for anyone starting on or after 6 April and make sure they’re issued on day one – or before.
Holiday pay
The reference period for calculating holiday pay entitlement for workers without regular hours will go up from 12 weeks to 52 weeks. This is intended to help those such as seasonal workers whose hours – and therefore holiday pay - fluctuate.
To do: Be ready to recalculate holiday pay entitlement for all staff, particularly those whose working hours vary. Keep records for 52 weeks, or the full term of employment, if shorter.
Information and consultation (I&C)
The threshold for employees to demand I&C arrangements will fall from 10% of the workforce to 2%. However, at least 15 employees will be still be required to make the request, so this is unlikely to affect small businesses.
Bereavement leave
Employees who lose a child under 18 or suffer a stillbirth after 24 weeks will be entitled to 2 weeks paid leave – subject to meeting eligibility requirements.
To do: Update contracts and policies.
Pay essentials
Rates of National Minimum Wage will increase from April 2020:
- National Living Wage for age 25+ will be £8.72 (previously £8.21)
- Age 21+ will be £8.20 (previously (£7.70)
- Age 18-20 will be £6.45 (previously £6.15)
- Age 16-17 will be £4.55 (previously £4.35)
- Apprentice rates will be £4.15 (previously £3.90)
- Maternity, adoption, paternity and shared parental pay will be £151.20* (from £148.68*)
- Statutory sick pay will be £95.85 (previously £94.25)
*Or 90% of average weekly earnings, for the first 6 weeks whichever is lower
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