We have summarised the key Employment Law changes and updates for 2020 below along with the changes to Statutory Provisions. Make sure you have a good look at what’s coming up.
Gender Pay Reporting
If your school has 250 or more employees, you must publish your gender pay gap data and report your data to the government online, using the gender pay gap reporting service.
For public sector organisations (which most schools are), the snapshot date is 31st March each year. Local Authorities will be responsible for school and PRU reports. Trusts are responsible for reporting for all their academies. Reports must be submitted within a year of the snapshot date.
Independent schools should follow the private sector guidelines and use 5 April as their snapshot.
National Living Wage and Minimum Wage
The National Living Wage is payable to workers aged 25 and over. From 1st April it will increase from £8.21 to £8.72
The National Minimum Wage for workers under 25 will also increase as follows:
- Workers aged 21 to 24 – from £7.70 to £8.20
- Workers aged 18 to 20 – from £6.15 to £6.45
- Workers aged over compulsory school age under 18 – from £4.35 to £4.55
Apprentices should be paid £4.15, an increase from £3.90
Changes to Employment Contracts
From 6th April 2020, changes to the law relating to employment contracts will require you to provide greater detail in contracts and to issue them earlier in the process.
Currently, you have to include a section 1 statement covering employment details within eight weeks of an employee’s start date. From April, you will need to issue contracts from day one of employment, no matter on the length of the contract and to all workers not just employees.
Parental Bereavement Leave
It is expected that from April 2020, the new Parental Bereavement Leave and Pay Act will give all employed parents a day one right to 2 weeks’ leave if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy. Employed parents will also be able to claim pay for this period, subject to meeting eligibility criteria. You can read more on our blog.
IR35
The responsibility for assessing the worker and accounting for tax and national insurance will lie with the employer rather than the worker from 6th April 2020. Organisations will need to decide whether the rules apply to an engagement with individuals who work through their own company. If IR35 does apply, then the legislation makes provision for how to pay the extra income tax and National Insurance Contributions. From April, IR35 applies to all organisations not just public sector, only small organisations are exempt.
IR35 is legislation that applies to individuals who work like an employee, but through their own limited company. The legislation is aimed at identifying where they only work for one company, yet still benefit from paying less tax and contributions than employees. For more information click here.
Break in continuity of service
This is currently classed as one week or more (except where legislation or local agreements dictates otherwise) post 6th April it is to increase to four weeks or more (except where legislation or local agreements dictates otherwise)
Agency Workers Payment
Currently, after 12 weeks an agency worker is entitled to be paid the same as permanent employees unless specified contractually where they receive minimum pay between assignments. From 6th April all agency workers after 12 weeks will be entitled to be paid the same as permanent employees. They must also receive a written statement explaining their entitlement by 30th April 2020. Workers must also from 6th April 2020 be provided with a key facts statement covering the terms of their work.
Holiday Entitlement
Workers with irregular hours had their entitlement worked out using 12 week average. Entitlement post April 2020 will now be based on the last 52 weeks or the total number of weeks worked so far. If the worker has been employed for less than 52 weeks, their holiday pay is based on the number of complete weeks they have worked.
Termination Payments
From 6th April, employer NI contributions of 13.8% will now become payable on termination payments above £30,000. Currently only income tax is payable on amounts over £30,000.
Statutory Sick Pay
The proposed rates from 6th April 2020 will see an increase from £94.25 to £95.85.
Maternity Pay
From 5th April 2020 (first Sunday of April) it is proposed that statutory maternity pay is expected to rise to £151.20 a week or 90% of the employee’s average weekly wage if this is less. Statutory maternity pay is payable at 90% of the employee’s average weekly earnings for the first six weeks and then at £151.20 (or 90% if less) for the remaining period.
Shared Parental Pay and Paternity Pay
From 5th April 2020, the rates for statutory paternity pay and statutory shared parental pay are proposed to increase to £151.20 or 90% of the employee’s average weekly wage if this is less.
Adoption Pay
The rate of statutory adoption pay will increase on 5th April from £148.68 to £151.20. Statutory adoption pay is payable at 90% of the employee’s average weekly earnings for the first six weeks and then at £151.20 (or 90% if less) for the rest of the adoption pay period.
Upcoming changes
It is expected that the maximum compensatory award for unfair dismissals and statutory redundancy will increase from April but these rates have not yet been published. There are other things in the pipeline but we will publish these when more information has been released.
If you need any help with employment contracts, changes to pay, terms and conditions, variation letters or terminations, please get in touch with your HR Consultant or call one of our team on 01924 827869 to see how we could help.
