Changes to Employment Law in 2020: what we need to know.

We are now in the year 2020, and there are certain changes set to come into place regarding employment law which you may need to know about.

Although many employment law changes were put on hold due to the Government being involved in Brexit delays and complications, there are numerous laws, including sick pay and payslips are set to come into place in April.

Here is everything you need to know.

  1. Swedish derogation contracts will no longer be viable. They currently allow employers to avoid paying agency workers equal pay after 12 weeks. These are set to become illegal and employers will be unable to use them.
  • Lowering consultation threshold. The percentage of employee support that is needed to set up information and consultation arrangements is set to reduce, meaning that only 2% of the overall workforce needs to be behind this measure. This reduction has been designed to give employees a greater voice within the organisation and increasing overall engagement.
  • CEO pay ratio reporting. Certain employers will be required to include information which relates to their CEO pay ratio within directors remuneration reports. Any UK listed companies who have more than 250 employees on average in a year are expected to compare their CEO’s most recent remuneration against that of their full-time employees.
  • Bereavement leave. The Parental Bereavement (Pay and Leave) Act is coming into place in April. This will entitle primary care givers, not just parents, to time off in the event of the death of a child.
  • Contract changes. The law surrounding employee contracts is set to change, meaning contracts will become a right for all workers from their first day of employment. Contracts will also be required to contain additional information including entitlement to any family-friendly leave, the clarification of any periods of probation, and confirmation of specific days and times that employees are required to work. They will also include any other benefits that are not covered anywhere in the written statement, and details of any training that is provided by the employer.
  • Statutory rates review. The minimum rates currently on offer for statutory entitlements including maternity pay, paternity pay and sick pay will be reviewed in April.
  • Holiday pay reference period to be extended. The holiday pay reference period calculates the average pay of individuals that work irregular hours. As of the 6th April, this period is set to be extended from 12 to 52 weeks and employers are expected to keep track of employees’ working time throughout the year, including overtime.

If you would like to discuss these changes to employment law or to discuss any other aspect of employment law, then contact us today on 01325 389 800 to speak to our employment law specialist, Len Mann.


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