The Good Work Plan 1 month to go – Top Tips

 

All changes below will commence on 6 April 2020, with the exception of National Minimum/Living Wage commencing on the 1 April 2020.

Now is a good time to make sure your policies are updated to reflect such changes.

1. Off-Payroll rules extending into the private sector

The client will be required to issue a status determination statement 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. 

Call to action – Staff training to ensure knowledge throughout is essential. You must be aware of your obligations as a client/agency to prevent becoming the fee payer for unpaid tax and NIC, as well as preventing an employment tribunal.

Did you know – Aspire can offer IR35 training to your staff to ensure you are best prepared for 6 April 2020.

2. Swedish derogation contracts are being abolished

Swedish derogation contracts, also known as ‘pay-between-assignment’ or Reg 10 contracts, will be abolished. Workers engaged through these contracts will automatically revert to the right to pay parity.

Call to action – It is important to ensure your existing contracts are up to date and no longer reference Reg 10 contracts as an option. Any workers currently using Reg 10 will need to be made aware of the changes by 30th April 2020.

Did you know – Aspire can provide communications and contracts to assist you with this.

3. Holiday pay reference period

The reference period for calculating average weekly pay appropriate to payment of holiday pay is extended from 12 weeks to 52 weeks.

Call to action – Employers must ensure that processes are updated to include 52-weeks of pay data rather than 12 when calculating a worker’s holiday pay. Failure to do so could result in an employment tribunal.

Did you know – Aspire can help you calculate those tricky holiday calculations.

4. Introduction of a Key Information Document

An employment business must give work-seekers a Key Information Document (KID) 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.

Call to action – Failure to comply with regulation 13a of The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019 could result in an inspection from the Employment Agency Standards Inspectorate (EASI) and/or an employment tribunal.

Did you know – Kirsty Perryman from EASI spoke at our recent seminar.  Aspire have extensive knowledge of supporting our clients with the production of this documentation.

5. Paid Parental Bereavement Leave

Effective 6 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 pregnancy.

Call to action – Internal policies must be updated to reflect this change. Consideration for the requirements of cultures and religions should also be given to prevent a discrimination claim.

Did you know – Aspire Human Resources can assist you with your Family Friendly policies.

6. Statement of terms

All workers (and not just employees as previously) will now have the right to a written statement of particulars of employment which must be given prior to, or on commencement of employment.

Call to action – Businesses may wish to update their recruitment procedures to ensure that all new workers receive a statement of terms on the first day of work.

Did you know – We can normally undertake an audit of a basic contract for a fixed fee, so why not get in touch to find out more.

7. National Minimum/Living Wage increasing

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 an age-dependent increase.

Call to action – Employers must ensure that all workers are working for the age appropriate minimum wage. Agencies must also ensure that the pay breakdown calculation does not fall below the NMW/NLW. Non-compliance can result in a large liability and/or an employment tribunal.

Did you know – The Government recently reinstated the NMW naming and shaming list.

8. Changes to tipping practices

Employers will be banned from taking “administrative fees” from tips and gratuities, and instead, the whole amount will be given directly to the individual.

Call to action – It is essential that all those working in the catering/hospitality industry are aware of these changes to prevent an employment tribunal.

Did you know – We can assist you with producing a Policy on Tipping and advice in relation to the National Minimum Wage.

9. Taxation of termination payments

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.

Call to action – There has been a long delay in this being implemented in law, so it is imperative that employers are aware that tax and NICs will now apply to these termination payments in order to avoid receiving a liability and an additional fine from HMRC.

Did you know – The new rules will generally cost the employer and employee more, with additional charges to income tax and NICs. Employers may need to factor this into termination discussions accordingly.

 

If you or your business are unsure or unprepared for any of the above changes, get in touch today on 0121 445 6178 or enquire@aspirepartnership.co.uk.