What’s Changing in 2020
As 2019 draws to a close, here at Expert HR Solutions Ltd we thought we’d give you some advanced warning of some of the key developments that are likely to come into play in 2020.
CEO Pay Ratio Reporting
1 January 2020 all UK listed companies who have in a year, on average more than 250 employees are expected to compare their CEOs most recent remuneration against that of their full-time employees.
Statement of Main Terms and Conditions
Many of you will know these as contracts of employment. Currently, you as the employer have eight weeks from the start of any individual’s employment to provide them with this document. From sixth of April 2020 it will become a right on day one of employment. They will also need to contain additional details for the first time, including entitlement to family friendly leave, clarification of any probationary periods and confirmation of which specific days and times individuals are required to work.
Extension of Holiday Pay Reference Period
For those of you who employ people working irregular hours this change will which will be introduced in April 2020 is significant. The holiday reference period is that which is used to calculate holiday pay, and it is being extended from 12 to 52 weeks. It will be important for organisations to keep track of employees’ working time throughout the year, including overtime, to ensure that they are correctly remunerated whilst on annual leave.
End of Swedish Derogation Contracts
Unless you employ Agency Staff, this change will not affect you, but it comes into effect on 6 April 2020. The Swedish Derogation allows employers to avoid paying agency workers the same as they do any of their own staff. The end of this derogation means that you will have to pay agency workers exactly the same as you do an equivalent normal employee, including any benefits. If you do employ agency staff this will be a significant increase in costs, the good news is that Expert HR Solutions Ltd may have a solution for you. Our contact details are at the bottom of this blog.
Agency Workers Key Facts Page
From 6 April 2020,
agency workers will have a right to receive a key information document to help
them make informed choices about the work they accept. This document is required to clarify specific
matters including the type of contract the worker is employed under a minimum
rate of pay. If you do employ agency
workers we strongly advise you seek professional advice on this change early in
Increased Minimum Wage
On average the National Minimum Wage Rates are increasing well above inflation by 5.72% and will be as follows from April 2020:
Over 25 years old £8.72
21 – 24 years old £8.20
18 – 20 years old £6.45
Under 18 years old £4.55
Apprentice Rate £4.15
Parental Bereavement Leave
The right to parental bereavement leave will also become effective in April 2020. Although no exact date has been confirmed, we know that qualifying parents will be entitled to 2 weeks of paid bereavement leave following the death of a child under the age of 18.
Although there have been no fixed implementation dates, the government have pledged to improve redundancy protection for working mothers and alter existing legislation around the use of nondisclosure agreements. We are also expecting the results of separate consultations on preventing sexual harassment as well as restructuring the availability of family friendly entitlements and statutory sick pay.
If you want help on these or any other matters concerning your employees, why not give us a call on 01202 611033, your first 30 minutes is free.
Attract and Retain the Best Staff
A recent survey by our Professional body found that only half of permanent employees (51%) think they are paid fairly and even fewer (34%) think that everyone in their organisation is paid fairly says Chris Wilkinson from Expert HR Solutions. But we prefer to present solutions not problems he continues so read on.
The report finds the perception of unfair pay is being driven by employers’ lack of communication around pay. When people don’t think they’re paid fairly, organisations reduce their chances of attracting and retaining the best talent. Employers also miss the opportunity to improve employee performance and well-being. Chris says it is important to remember that what matters here is not what you think but what is the perception of your staff, because their perception is their reality.
Part of the solution says Chris is to communicate what your pay policy is clearly to all staff. We suggest employers think about their pay policy differently and think more in terms of benefits package which allows employers to be much more creative in how they reward staff. We all place different values on different things, so think of the benefits package like the shopping basket, pay is just one of the things that can be put in the basket. It also happens to be a legal requirement to pay your staff at least the National Minimum Wage (NMW). It is also true that at this moment in time the recruitment marketplace is highly competitive with far more jobs available than candidates. It is therefore a fact of life that if you want to attract and retain the best you need to know what your competitors are doing.
There are any number of surveys that show that the offer of flexible working is consistently in the top five benefits that employee’s value. The law was changed a few years ago to permit any employee to make a flexible working request so why not include flexible working as one of the benefits you offer as a benefit. It has the advantage that it may not cost much to implement but will definitely be valued.
There is a huge amount of political and press interest in Senior Reward Packages currently, but have you ever done any of the following asks Chris:
- explained to your staff why they get paid what they do, only about 60% of employees say this has happened to them;
- have a formal process to assess and manage pay risk, less than 20% of companies do;
- carried out an equal pay audit in the past three years to ensure they are complying with the law, less than 40% of companies required to do this have done so;
- benchmarked your benefits package against other employers.
Well says Chris we think we have a solution. If you are one of our Gold or Platinum retained clients, why not take advantage of the fact that included in the monthly fee is the opportunity to benchmark your package against other employers. If you are not a retained client you can get the same comprehensive report which shows not only salary comparison, but other benefits such as insurance, car, bonus and so on both nationally and locally, call us on 01202 611033.