April 2020: 3 Months to Go - The Good Work Plan and Other Legislation
13 January 2020
We have just 3 months left until implementation day. Aspire have pulled together all of your need-to-know changes to get you ready for April 2020.
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Legislation |
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1. |
Ban use of derogated pay between assignments contract (Reg 10 contracts) |
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Effective 6th April 2020, employees who are engaged on derogated ‘pay between assignments’ contracts will automatically revert to the right to pay parity. |
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2. |
Right to a written statement of particulars and what they must contain |
The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 The Employment Rights (Miscellaneous Amendments) Regulations 2019 |
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This new legislation, which comes into effect on 6th April 2020, amends Part 1 of the Employment Rights Act 1996 to effect that all workers (and not just employees as previously) now have the right to a written statement of particulars of employment which must be given prior to, or on commencement of employment. The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 also details what must be included within the statement of initial employment particulars. |
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3. |
Holiday pay reference period to be extended to 52 weeks |
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Effective 6th April 2020, the reference period for calculating average weekly pay appropriate to payment of holiday pay is extended from 12 weeks to 52 weeks. |
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4. |
Key information document to be provided by employment businesses |
The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019 |
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Effective 6th April 2020, an employment business must give work-seekers a Key Information Document which clearly sets out certain key information concerning their relationship. This document must be provided before the business reaches an agreement on terms with that person. |
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5. |
Taxation of Termination Payments |
National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill 2017-19 (Progression of the Bill) |
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Effective 6th April 2020, the introduction of employer NICs on termination payments above £30,000 will now take effect from 6 April 2020 rather than the original proposed date of 6 April 2018. |
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6. |
Implementation of Paid Parental Bereavement Leave |
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Effective 6th April 2020, primary carers – not just parents – will be entitled to at least two weeks leave following the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnant. |
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7. |
All tips or gratuities will be passed directly to the Employee |
Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges |
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Effective 6th April 2020, a big change for those working in the hospitality and catering industry is that employers will be banned from taking “administrative fees” from tips and gratuities—they will pass the whole amount directly to the individual, rather than be taken by the employer. |
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8. |
Redundancy protection extended for new mums |
The Pregnancy and Maternity (Redundancy Protection) Bill 2019
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The government has announced that redundancy protection will apply from the time that an organisation is informed of a pregnancy until six months after the mother returns to work. This announcement would seem to be the latest move by the government in facilitating workplace reform, something that remains a priority as part of the Good Work Plan. Originally due to be implemented in April 2020, the proposal will form part of the Employment Bill expected to be implemented post-Brexit. We are awaiting an official date to be confirmed. |
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9. |
The Government is looking to improve the clarity of the employment status tests |
Yet to be released |
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The government will agree to make detailed proposals on how the frameworks for employment rights and employment tax can be aligned to reduce differences between the two systems to an absolute minimum. |
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10. |
Merge of 'employee' and 'worker' status |
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The House of Commons reviewed the Worker (Definition and Rights) Bill for the second time, which, if passed, would see the merging of ‘employee’ and worker’ status to remove the grey area of uncertainty. |
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11. |
The rates for the Nation Living Wage and National Minimum Wage have been confirmed for 2020 |
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From 1 April 2020, the National Living Wage, applying to all those aged 25 and over, will increase from the current £8.21 to £8.72 per hour. Younger workers receiving the National Minimum Wage will also see pay rises, with increases of between 4.6% and 6.5%, dependent on their age. |
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Off Payroll Working Rules |
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Off Payroll Working rules are to be extended into the private sector. From 6th April 2020 it is planned that end hirers will be required to issue a determination on whether the individual supplying a personal service to them via their own personal service company (PSC) would, were they to make the supply outside of their PSC, be treated for tax purposes as an employee. The delayed Budget, taking place on the 11th March 2020, will leave very little time for the legislation to be finalised. Government have recently announced they will be reviewing the draft legislation before its implementation in an attempt to make it as smooth as possible. |
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VAT Reverse Charge in Construction |
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The VAT reverse charge in construction has been delayed for one year and will now be effective from 1st October 2020, making the customer will be liable to account to HMRC for the VAT in respect of purchases of construction services rather than the supplier. The reverse charge applies throughout the supply chain where payments are required to be reported through the Construction Industry Scheme (‘CIS’). It will apply until the point where the customer receiving the supply is no longer a business that makes supplies of construction services (‘end users’). |
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Aspire Comment
With just 3 months left before the implementation of the Good Work Plan, it is imperative that your company is aware of the changes that will need to be made from a compliance perspective, as well as a possible administrative burden.
If you are concerned about any of the upcoming legislative changes, please contact Aspire on 0121 445 6178 or email enquire@aspirepartnership.co.uk to speak to an advisor.
We will be hosting our “Operation Compliance” seminar in February. Join us on Tuesday 11 February 2020 at The Holiday Inn, Coram Street, Bloomsbury, London, WC1N 1HT or Thursday 13 February 2020 at The Belfry Hotel & Resort, Lichfield Road, Sutton Coldfield, B76 9PR.
Tickets are now on sale. Book early to avoid disappointment. Places will be allocated on a first come first served basis.
To purchase a ticket for the London venue, please click here.
To purchase a ticket for the Birmingham venue, please click here.