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 2020.
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.