18th March 2020
Contract of employment
The Employment Rights Act 1996 will be amended so that:
Review your contracts of employment, update your templates, and create new templates for workers (your standard employment contract template may not be suitable for your arrangements with workers).
The Working Time Regulations 1998 will also be amended to increase the reference period for calculating holiday pay for those working irregular hours. The average will be worked out taking into account 52 weeks of pay, as opposed to the current 12 weeks.
This means that affected employees will benefit from the peaks and troughs of their employment over the whole year. It could also act to discourage the strategic taking of holiday after a particularly busy period.
National minimum wage
This will rise, as follows, on 1 April 2020.
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentices
or in first year
In a further move to crack down on perceived tax avoidance, the Government was due to enforce the new ‘off-payroll’ rules under IR35 as of this April (see more here). In response to pressures arising from the Covid-19 pandemic, these rules are now set to come into force a year later – 6 April 2021.
To discuss your employment queries with a legal expert, please get in touch with a member of the Employment team.