We are ending our series of newsletters for 2019 with the things we think need to be on your radar for 2020.
Confirmation that voluntary overtime should be included when calculating holiday pay
For many employers this is the final part of the jigsaw in relation to calculating holiday pay. The Court of Appeal decision in East of England Ambulance Service NHS Trust v Flowers, which confirmed that voluntary overtime pay should be taken into account by the employer when calculating holiday pay (provided the voluntary overtime is worked on a settled pattern prior to the period of holiday) was long awaited by employers.
In practical terms it now means that we have a degree of certainty when it comes to deciding whether or not to include voluntary overtime when calculating holiday pay. Some questions still remain however for employers in relation to what is likely to amount to a settled pattern of overtime and what the appropriate reference period for determining that should be.
Improved written statement of terms for all workers, from day one – 6 April 2020
This provides the right to a written statement of terms for all workers (a right which is currently only available to employees). That statement must be given on or before the first day of employment. The information that must be given in the statement includes; the days of the week the worker is required to work, whether the working hours may be variable and how any variation will be determined, any paid leave to which the worker is entitled, details of all remuneration and benefits, any probationary period and any training entitlement provided by the employer, including whether any training is mandatory and/or must be paid for by the worker.
Reference period for holiday pay to be 52 weeks rather than 12 weeks – 6 April 2020
Regulation 16 of the WTR 1998 will be amended from 6 April 2020 to increase the reference period for determining an average week's pay (for the purposes of calculating holiday pay) from 12 weeks to 52 weeks, or the number of complete weeks for which the worker has been employed.
Lower threshold required for a request to set up information and consultation arrangements – 6 April 2020
The threshold required in relation to a request to negotiate an Information and Consultation Agreement will reduce from the current 10% of employees, to 2% of employees from April 2020.
Further aspects of the Good Work Plan
We await to see what 2020 may bring in terms of further developments in relation to other key aspects of the Good Work Plan such as, increasing the gap required to break continuity of employment to 4 weeks, legislation to improve the clarity of employment status and the right for all workers to request a more predictable and stable contract after 26 weeks' service.
Right to two weeks’ leave and statutory parental bereavement pay – April 2020
The Parental Bereavement (Leave and Pay) Act 2018 is expected to come into force in April 2020. The Act gives all employed parents who lose a child under the age of 18 or suffer a still birth from 24 weeks of pregnancy, the right to two weeks’ leave and statutory parental bereavement pay, subject to certain eligibility criteria. Details of how and when the leave may be taken will be set out in regulations in due course.
Changes to IR35 and National Insurance Contributions on termination payments – 6 April 2020
All termination payments above the £30,000 threshold will be subject to class 1A National Insurance Contributions and the off-payroll working rules (also known as IR35) will be extended to large and medium-sized companies in the private sector. For further information see our November monthly update.
EU Settlement Scheme
EU, EEA or Swiss citizens can apply to the EU Settlement Scheme to continue living in the UK after 30 June 2021. If successful, individuals will either receive settled or pre-settled status. The Home Office has published an employer toolkit to help guide employers through the new EU settlement scheme. The toolkit includes a briefing pack for communicating key facts to employees, a leaflet with important info for EU citizens in the UK, a leaflet with steps to apply for settled status, a leaflet with key terminology, and various posters with important dates, the benefits of applying and steps to apply.
It’s clear that there are plenty of things on the horizon for 2020, in the meantime however we at the Geldards Employment Team wish you a very happy Christmas and best wishes for the New Year.
As ever, should you wish to get in touch in relation to any issues you may have please don’t hesitate to contact us.
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