New employment law changes come into force on 6 April
On 6 April each year, new and amended employment laws and deadlines come into force. As well as dealing with the employment issues related to the ongoing impact of coronavirus, important issues include changes to written statements of terms and conditions, the introduction of parental bereavement leave and pay, and changes to the law on calculating holiday pay for workers with irregular hours.
Whilst the government has allowed large employers to delay submitting their gender pay gap reports, this should still be on the agenda, as well as keeping in mind the IR35 tax rules to private-sector employers, which will be delayed until 6 April 2021.
The usual increases to the national minimum wage, maternity pay, statutory sick pay and redundancy payments will occur as normal on 6 April.
Written statements of terms and conditions
From 6 April 2020, the requirement to provide a written statement of terms and conditions extends to all workers, including casual and zero hours workers. Previously this requirement was only for employees.
The right to a statement now takes effect from day one of the employment relationship, detailing the worker’s employment status, days and times required to work, remuneration, training entitlements, sick leave and maternity/paternity leave, duration of contract and probation and notice periods.
Parental bereavement leave and pay
Parents who lose a child will receive two weeks' paid bereavement leave at a statutory minimum rate under new government rules known as Jack's Law, in memory of Jack Herd, whose mother Lucy has campaigned for reform since he drowned aged 23 months in 2010. The Parental Bereavement (Pay and Leave) Bill is the first of its kind. Under the new law, parents who lose a child under the age of 18 will be able to take leave as either a single block of two weeks, or as two separate blocks of one week each across the first year after the death.
The right also applies to stillbirths occurring after 24 weeks of pregnancy.
Wage increases
The national living wage for workers aged 25 and over increased to £8.72 per hour on 1 April 2020. Other national minimum wage rates also increase don 1 April 2020, with hourly rates rising to £8.20 for workers aged 21 to 24, to £6.45 for workers aged 18 to 20 and to £4.55 for workers aged 16 or 17.
The weekly rate of statutory maternity, paternity, adoption and shared parental pay increases to £151.20 from 5 April 2020.
The weekly rate of statutory sick pay increases to £95.85 from 6 April 2020.
The maximum compensatory award for unfair dismissal increases from £86,444 to £88,519 for dismissals that take place on or after 6 April 2020.
Statutory redundancy pay calculations
New limits on employment statutory redundancy pay come into force on 6 April 2020.
Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age. The weekly pay is subject to a maximum amount, which from 6 April 2020 is £538.
Holiday pay calculations for workers with irregular hours
On 6 April 2020, the holiday pay reference period for workers with irregular working hours increases from 12 weeks to 52 weeks.
Swedish derogation
On 6 April 2020, the ability for employers to pay agency workers less than their own workers in certain circumstances, also known as the “Swedish derogation”, will be abolished. Under the derogation, agency workers can exchange their right to be paid the same as directly recruited employees for a contract guaranteeing pay between assignments. Following the abolition of the derogation, agency workers who have completed the 12-week qualifying period should be paid equally to other staff.
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