As of 6th April 2020 new employment laws will be coming into place to assist with creating work that is ‘fair and decent’. These changes have come about as a result of the Good Work Plan following the Taylor Review.
The Taylor Review looked at ways of modernising working practices and made a number of recommendations with an overall aim that work should be fair and decent. A number of the recommendations were taken on and formed the Good Work Plan. The Good Work Plan now provides for clarity not only for employees but workers as well who have always been less protected by employment legislation. So what changes are coming about from 6th April 2020:
- A more stable contract – Employees and workers will be able to request a more predictable and stable contract after 26 weeks of continuous service. This is probably more beneficial to zero hours and casual workers who have less certainly and security on the contracts they are on. For example, a worker could request more guarantees around hours or certainty around the days of the week they may be required to work.
- Extended break in service time period – This is currently set at one week, meaning if an employee leaves an employer and then returns to the same employer a week or more after, they will lose their continuous service which is important for unfair dismissal eligibility or redundancy. This break will now be extended to four weeks meaning returning to that employer within less than four weeks guarantees the continuation of their continuous service.
- Agency workers protection – After 12 weeks of service an agency worker will be entitled to the same level of pay as a permanent employee.
- Tips and Gratuities – Tips will now have to be passed directly to the employee rather than held by the employer to make decisions on.
- Information and consultation arrangements – Currently 10% of the workforce support is required for employees to be involved in workplace decisions e.g redundancy consultation, this is being dropped to 2%.
- The employment test – The Government have made a commitment to improve the test so that there is more clarity between employee, worker and self employed status. There will be an on line tool developed to help with this.
- Basic terms of employment – All employees and workers will be entitled to receive basic written terms prior to or by their first day of employment. Currently employers have two months to get their terms and conditions out to new recruits. This is required to ensure that all parties are clear on their terms and conditions of employment from the outset.
- Key facts for agency workers – These need to state the type of contract the agency worker is on, their minimum rate of pay and any details on fees taken.
- Annual leave/holiday calculations – Currently a 12 week period from the previous 12 weeks is used to calculate holiday entitlement (particularly relevant for employees/workers who work irregular hours), this time period will be extended to 52 weeks.
- Fairer enforcement/naming and shaming – companies who do not pay compensation to an individual where they have lost at an Employment Tribunal may face enforcement proceedings and will be publicly named and shamed.