Every year there are some changes in the UK’s company and corporate laws. These amendments affect a company’s working up to a great extent. It is, therefore, necessary to know about these changes beforehand to take proper actions before any contingencies occur. This year also there are a few important employment law changes that every business organization must be aware of.
New Right To A Written Statement Of Terms
The law shall come into force from 6 April 2020. According to this amendment, all the employees shall have the “right to a written statement of terms” from the very first day of their employment, unlike 30 days. Earlier the employees were provided the written statement after one month of employment. It is also necessary for employers to include every element of the new recruitment in the statement.
Amendments To Agency Workers Rules
The new law shall be applicable from 6th April 2020. As per the new law, the Swedish derogation shall be removed from the effective date. As per the Swedish derogation earlier no agency employees were given the right to equal pay after the completion of 12 weeks period if they were paid by the agency for periods between the assignments. After removing the law, all the employees are entitled to equal pay like directly recruited employees. Agencies shall provide written notification to its employees regarding the removal of derogation before 30th April.
Changes To IR35 Rules For The Private Sector
Only the middle and large businesses in the private sector shall be affected by the changes. The new rule asks the client under the contract assignment to determine whether the IR35 applies or not unlike the PSC in the earlier rule. Now the responsibility for accounting of taxes and national insurance shall come under the client’s perspective, which earlier was the PSC’S responsibility. Note: PSC is the Personal Service company that provides services to the client under the contract through workers.
Holiday Pay Reference Period Adjustment
As per the new law, the holiday pay preference shall increase to 52 weeks which earlier was 12 weeks. Employers will have to compute the average weekly pay based on the past 52 weeks’ pay records and accordingly compute the amount of pay. It is expected that the changes shall help to even out variation in the pay of seasonal or typical employees.
New Parental Bereavement Law
This is a new law known as The Parental Bereavement (Leave And Pay) Act 2018. As per this law, the bereaved parents who have lost their child under the age of 18 shall get two weeks of leave. The same law applies to parents who have lost a child after 24 weeks of pregnancy. The parents must take two week’s leave before the end of 56 days from the death of the child. Bereaved parents who are employed with 26 weeks of continuous service shall also receive statutory parental bereavement pay. Below 26 weeks parents can receive only two weeks leave that too without any pay.
Above are some of the employment laws that will impact employers and employees.
