Written Statement of Main Terms and Conditions
Currently, employers have to provide their employees with a written statement of main terms and conditions (outlining their basic terms of employment) within 2 months of that employees start date.
Those considered as workers: including workers on zero-hour contracts and casual contracts will have the legal right to receive a written statement of their main terms and conditions. This statement must be tailored to the workers arrangements.
Additionally, the written statement of main terms and conditions must also include the following details:
- The days and hours the employee is required to work
- Any benefits that the employer offers, and any additional benefits offered by the employer must be communicated to the employees within 1 month of introducing those benefits
- Details of any probation period, which would include the length and requirements for passing the probation period
- Details of training offered by the employer, including whether the training is voluntary or mandatory, and who will pay the costs for such training
To see the changes in detail you can read our previous blog Employment Contract Changes from 6 April 2020
When making holiday calculations, the pay reference period will be increasing from 12 weeks to 52 weeks. For employees with less than 52 weeks service, the pay reference period will be the total number of weeks they have worked so far.
Set out below is the way in which holidays are calculated for an employee over a 52 week period:
1. Total hours worked/52 weeks = gives the average working week
2. Total cash (regular commission and overtime inclusive) added over 52 weeks. You then divide the total cash amount by 52 weeks. This gives the average weekly pay
3. Average weekly pay/average working week = average hourly pay
4. Average working week/5 days = hours per day x average hourly pay = holiday pay for 1 day
Please note that, weeks in which no pay has been received will not count towards the 52-week average.
Requesting a ‘More Stable Contract’
Employees who do not have regular working hours will be able to request a more stable contract, once they have worked for the employer for at least 26 weeks. This will allow these individuals to request a contract that affords them a more fixed working pattern, with guaranteed hours.
As of April 2020, there will be a ban on employers taking tips away from employees. This point is of particular interest to those working in the hospitality sector, where this practice is widespread.
Information and Consultation
The threshold for setting up information and consultation arrangements is set to be lowered from 10% to 2% for Employees. However, the current minimum threshold for initiation of proceedings will remain- this is 15 employees.
Employment status has been a controversial matter in Employment Law, with many high-profile cases, such as Uber and Deliveroo. With a number of new casual working arrangement arising, the government has agreed that a new framework needs to be created, which allows for easier determination of employment status for employers and employees.
The Good Work Plan recommends that the test to determine whether someone is a Worker (with workers rights) or is Self-Employed should now be based on the control the Employer has over the employee, for example over nature and amount of work.
A substantial change in agency working is the abolishment of the Swedish Derogation Agreement. This allowed companies to pay agency workers less than their permanent employees. The 6th April will now see agency workers entitled to the same pay as those who have been directly recruited by the company.
This change will come into effect once the agency worker has performed the same role within that same employer for 12 consecutive calendar weeks.
For further information and help with the changes set out by the Good Work Plan, please contact us on [email protected] or call 0114 3032300 or 0203 3290280