The following changes in UK employment law will be taking effect from April 2020. Employers are advised to take action now to ensure compliance and adjust processes and policies in advance of the new rules taking effect.
Increases in minimum wage, statutory sick pay and statutory family pay
Minimum wage
The new rates from 1 April 2020 will be as follows:
| Age | 2020 rate | 2019 rate | Increase (%) |
| 25 years and over | £8.72 | £8.21 | 6.2% |
| 21 years to 24 years | £8.20 | £7.70 | 6.5% |
| 18 years to 20 years | £6.45 | £6.15 | 4.9% |
| Under 18 years | £4.55 | £4.35 | 4.6% |
| Apprentice | £4.15 | £3.90 | 6.4% |
Statutory sick pay
The rate for statutory sick pay is to increase from £94.25 to £95.85 per week with effect from 6 April 2020.
Statutory family pay
Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP) are set to increase from £148.68 to £151.20 per week.
Employment contracts
Employers will be required to provide all employees and workers with a statement of employment particulars, including their main terms and conditions of employment, by their first working day.
Prior to 6th April, employers had a period of up to two months to supply the statement to new employees.
The new rule applies to both employees and workers.
The statement must also include additional information, which prior to 6th April could have been placed in a separate document.
Read more here.
Holiday reference period
The holiday pay reference period is being extended to 52 weeks, up from 12 weeks.
This change is designed to ensure workers without a regular working pattern, such as seasonal and zero hour workers, are not disadvantaged by having to take holiday at a quiet time of the year when their weekly pay might be lower.
The Parental Bereavement (Leave and Pay) Act 2018
Employees who have suffered the loss of a child will be entitled to statutory parental bereavement leave of two weeks.
The law applies to birth and adopted parents, foster parents and guardians as well extended groups such as close relatives or other primary caregivers to the child.
Employees with more than 26 weeks of continuous employment service will be eligible for a two-week period of paid leave. Employees with a lower period of service will be eligible for two weeks of unpaid bereavement leave.
Read more here.
Increase to Injury to Feeling Bands
From the 6th April, there will be increases to the ‘injury to feelings’ bands, relating to claims issued on or after the 6th April 2020:
- Lower Band (less serious cases) – £900 to £9,000
- Middle Band (cases that don’t merit an award in the upper band) – £9,001 to £27,001
- Upper Band (the most serious cases) – £27,001 to £45,000
Tribunals can make awards over £45,000 for exceptionally serious cases.
Agency workers
The ‘Swedish Derogation’, under which recruitment agencies paid workers less between assignments than they would earn working an assignment for the client, is being abolished. Such provisions within contracts no longer apply after 6th April 2020.
Agency workers engaged by a temporary work agency will be entitled to be given a Key Information Document containing specific information about their basic terms, including their type of contract, the minimum rate of pay they can expect, how they will be paid and by whom.
IR35 and off-payroll working
Planned for 6th April 2020 implementation, the Government confirmed the latest IR35 reforms would be delayed in light of the coronavirus crisis until next year. The changes will see public sector tax rules applied to the private sector. Medium and large-sized private sector companies hiring off-payroll contractors under private service companies (PSCs) will be responsible for determining their tax status. The new effective date has yet to be confirmed.
Read more here.
Gender pay gap reporting
Employers should note that gender pay gap reporting obligations have now been suspended for the year 2019/2020.
Need assistance?
If you have a question about the latest changes in employment law and their impact on your business, DavidsonMorris’ experienced employment lawyers can help. Working closely with our specialist human resource colleagues, we offer a holistic advisory and support service for employers encompassing both the legal and people risks of workforce management. Speak to our experts today for advice.
Last updated: 18 March 2020
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals