{"id":1438,"date":"2020-02-10T10:01:43","date_gmt":"2020-02-10T10:01:43","guid":{"rendered":"https:\/\/www.recruitment-connection.co.uk\/?p=1438"},"modified":"2020-02-10T10:02:12","modified_gmt":"2020-02-10T10:02:12","slug":"changes-to-uk-employment-law-2020","status":"publish","type":"post","link":"https:\/\/www.recruitment-connection.co.uk\/index.php\/2020\/02\/changes-to-uk-employment-law-2020\/","title":{"rendered":"Changes to UK employment law 2020"},"content":{"rendered":"\n

What are the\nchanges for UK employment law in 2020?<\/p>\n\n\n\n

\"https:\/\/pdf.printfriendly.com\/camo\/0722a268e6d57c8db84278feefa0b1e6ae4d0353\/68747470733a2f2f73322e676f6f676c6575736572636f6e74656e742e636f6d2f73322f66617669636f6e733f646f6d61696e3d7777772e6f70656e616363657373676f7665726e6d656e742e6f7267\"<\/figure>\n\n\n\n

In this article, Sean Dempsey and Richard Lister of UK law firm, Lewis Silkin, take a look at what\u2019s coming up in UK employment law in 2020<\/p>\n\n\n\n

Lewis Silkin is the UK member firm of Ius Laboris,<\/a> an\nHR and employment law firm alliance.<\/p>\n\n\n\n

Looking ahead to 2020, various Good Work Plan reforms are coming into\neffect in April and the Government is planning to introduce a new Employment\nBill, which will pave the way for a number of further employment law reforms.\nIt is clear that the Government\u2019s main priority is \u2018getting Brexit done\u2019, but\nwe can expect several employment law<\/a> reforms to be progressed\nduring the course of this year, many of which are to be included in the\nproposed new Employment Bill.<\/p>\n\n\n\n

Brexit impact on employment law<\/p>\n\n\n\n

The prime minister has brought the Withdrawal Agreement Bill back to\nParliament, and expects MPs to ratify it prior to the UK leaving the EU on 31\nJanuary 2020. The Government has, at least for the time being, ruled out\nextending the transition period beyond 31 December 2020. The Conservative\nmanifesto contained no detail about long-term plans for employment law, though\ndid include a pledge to ensure high standards of worker\u2019s rights. For more\ninformation about the implications of the current divorce deal, and the scope\nfor long-term divergence from the EU on employment rights, see our Brexit\nportal.<\/p>\n\n\n\n

New IR35 rules<\/p>\n\n\n\n

Changes to the operation of IR35 regime are due to take effect from 6\nApril 2020. Private-sector businesses engaging contractors who supply their\nservices personally via an intermediary (e.g. a personal service company) will\nbecome responsible for determining whether IR35 is applicable. If the business\nconsiders IR35 applies, the person paying the intermediary will be responsible\nfor operating PAYE and national insurance on the fees it pays.<\/p>\n\n\n\n

Companies affected should urgently prepare for these important changes\nby, for example: auditing their labour supply chain to identify contractors\nusing intermediaries; deciding on a methodology for assessing their status; and\nreviewing their onboarding process and documentation for contractors going\nforward. Before the general election, the Chancellor Sajid Javid said there\nwould be a review of the proposed IR35 changes to ensure they were \u2018right to\ntake forward\u2019. It seems more likely than not the reforms will proceed in April,\nso it remains sensible to continue preparations.<\/p>\n\n\n\n

Written statements<\/p>\n\n\n\n

One of several reforms being implemented from the Government\u2019s Good Work\nPlan is a revamp of the rules requiring employers to supply staff with a\nwritten statement of key particulars of their employment. From 6 April 2020,\nstatements will have to be provided to those with \u2018worker\u2019 status in addition\nto employees, by day one of employment. More information will need to be set\nout in the statement, including details of the full benefit and remuneration\npackage. Many employers are likely to be recruiting for April starters, so now\nis the time to start reviewing and amending their standard documentation.<\/p>\n\n\n\n

Agency workers<\/p>\n\n\n\n

The law on agency workers is also changing in April. When the UK first\nimplemented the EU Agency Workers Directive, it enacted the so-called \u2018Swedish\nDerogation\u2019, which provides that certain agency workers are not covered by the\nprinciple of equal treatment. This is being abolished with effect from 6 April\n2020. Businesses will need to decide what to do about any agency workers on\nSwedish Derogation contracts and, where appropriate, migrate them onto standard\nagency contracts or take them on as direct hires.<\/p>\n\n\n\n

Holiday pay<\/p>\n\n\n\n

The reference period for calculating holiday pay is increasing from 12\nweeks to 52 weeks on 6 April 2020. This change may create practical problems in\nrelation to people who work intermittently for just some weeks of the year.\nEmployers should review their current approach to calculation and identify any\nchanges required, and perhaps conduct a dry run to assess any cost impact.<\/p>\n\n\n\n

Information and consultation<\/p>\n\n\n\n

The final April 2020 Good Work change is a reduction in the threshold\nfor demanding information and consultation arrangements under the Information\nand Consultation of Employees Regulations 2004 from 10% to just 2% of\nemployees.<\/p>\n\n\n\n

Termination payments<\/p>\n\n\n\n

After significant changes to the tax treatment of termination payments\nwere introduced in April 2018, a related requirement for employers to pay\nemployer NICs on any part of an ex gratia termination payment exceeding GBP\n30,000 was put on hold. This change will now come in on 6 April 2020, making\ntermination payments more expensive.<\/p>\n\n\n\n

CEO pay ratio reporting<\/p>\n\n\n\n

The first reports will be due this year under the new legislative regime\nrequiring directors of UK-listed companies with 250 or more employees to report\nannually on the difference in pay between their CEO and average workers.<\/p>\n\n\n\n

Parental Bereavement (Pay and Leave) Act 2018<\/p>\n\n\n\n

A new right to parental bereavement leave, giving parents two weeks\u2019\npaid leave if they lose a child under 18, is expected to come into force\nsometime this year. Regulations setting out details of how the right will\noperate are still awaited.<\/p>\n\n\n\n

Discrimination<\/p>\n\n\n\n

The Government has promised to implement a planned reform to provide\npriority access to redeployment opportunities for pregnant women<\/a> and new parents in a\nredundancy situation. The new Employment Bill will include provisions to\nimplement these new rights.<\/p>\n\n\n\n

Regulation of NDAs<\/p>\n\n\n\n

The Government is expected to bring forward legislation introducing new\nrestrictions on confidentiality clauses in employment contracts and settlement\nagreements. This follows the publication of a consultation response on the\nissue last July. There is no draft legislation yet and the implementation date\nis unknown.<\/p>\n\n\n\n

Family and carers\u2019 rights<\/p>\n\n\n\n

The Government will be taking forward plans to allow parents to take\nextended leave for neonatal care (following a consultation published last\nJuly). The Employment Bill will also provide for a new right for carers to take\na week\u2019s leave each year. The Conservative manifesto said they would look at\nways to make it easier for fathers to take paternity leave, but no further\ndetails have been released.<\/p>\n\n\n\n

Making flexible working the default<\/p>\n\n\n\n

The Government intends to encourage flexible working arrangements and\nconsult about making them the default unless employers have a good reason\notherwise. Details are not yet clear, but the plans could go further than the\nproposals currently under consultation that would require employers to say if\nflexible working is available in job adverts and publish their flexible working\npolicies.<\/p>\n\n\n\n

Employment status and protections<\/p>\n\n\n\n

Despite the unresolved issue of employment status (see above), the\nConservative manifesto did promise that workers would gain the right to request\na more predictable working contract. This is something which had already been\npromised in the Good Work Plan, and forms part of the requirements of the EU\nTransparent and Predictable Working Conditions Directive.<\/p>\n\n\n\n

The right to a more predictable working contract will form part of the\nnew Employment Bill. The manifesto also mentioned other \u2018reasonable\nprotections\u2019, which may refer to rights to reasonable notice of work schedules\nand compensation for shift cancellation, which are already under consultation.<\/p>\n\n\n\n

Staff tips<\/p>\n\n\n\n

The new Employment Bill will provide for legislation requiring employers\nto pass on all tips. The Government also plans to introduce a new Statutory\nCode of Practice to ensure that tips are distributed fairly and transparently.<\/p>\n\n\n\n

New state enforcement body<\/p>\n\n\n\n

The Conservative manifesto also pledged to create a new state\nenforcement body to tackle non-compliance in the labour market, following a\nconsultation published last year.<\/p>\n\n\n\n

The plan outlined in the consultation was to bring together the existing\npatchwork of enforcement under the remit of a single body, and then expand its\nremit to cover holiday pay for vulnerable workers and umbrella companies\noperating in the agency workers sector. The Government is likely to focus on\ntargeting the most exploitative employers.<\/p>\n\n\n\n

Upcoming cases in 2020.<\/p>\n\n\n\n

Important employment cases to be decided this year include the\nfollowing:<\/p>\n\n\n\n

  1. Data protection<\/li><\/ol>\n\n\n\n

    The case of Morrison Supermarkets plc v Various claimants was heard by\nthe SC last November and the judgment is expected soon. Morrisons is appealing\nagainst the CA\u2019s ruling that it was liable for the wrongful disclosure of\npayroll data on around 10,000 staff by an aggrieved employee.<\/p>\n\n\n\n

    2. Minimum wage<\/p>\n\n\n\n

    In February, the SC is due to hear Royal Mencap Society v\nTomlinson-Blake, a case of huge significance for the care sector. The CA\ndecided that care workers carrying out \u2018sleep-in\u2019 shifts were not entitled to\nthe national minimum wage for the whole shift, but only when they are required\nto be awake and working.<\/p>\n\n\n\n

    3. Employment status<\/p>\n\n\n\n

    In Uber BV v Aslam and others, a case of major interest for the gig\neconomy, the CA upheld by a majority the finding that drivers engaged by Uber\nare workers rather than self-employed, whenever they are signed into the\nrelevant app and ready to work. The SC is scheduled to hear Uber\u2019s appeal in\nJuly.<\/p>\n\n\n\n

    4. Equal pay<\/p>\n\n\n\n

    Asda Stores Ltd v Brierley (see here<\/a>) is likely to be decided by the SC this year. A\nhearing date for Asda\u2019s appeal is awaited.<\/p>\n","protected":false},"excerpt":{"rendered":"

    What are the changes for UK employment law in 2020? In this article, Sean Dempsey and Richard Lister of UK law firm, Lewis Silkin, take a look at what\u2019s coming up in UK employment law in 2020 Lewis Silkin is the UK member firm of Ius Laboris, an HR and employment law firm alliance. Looking ahead to 2020, various Good Work Plan reforms are coming into effect in April and the Government is planning to introduce a new Employment Bill, which will pave the way for a number of further employment law reforms. It is clear that the Government\u2019s main priority is… <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"twitterCardType":"","cardImageID":0,"cardImage":"","cardTitle":"","cardDesc":"","cardImageAlt":"","cardPlayer":"","cardPlayerWidth":0,"cardPlayerHeight":0,"cardPlayerStream":"","cardPlayerCodec":"","footnotes":""},"categories":[4],"tags":[121,53,212],"class_list":["post-1438","post","type-post","status-publish","format-standard","hentry","category-job","tag-employment-law","tag-employment-market-news","tag-uk-employment-law"],"_links":{"self":[{"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=1438"}],"version-history":[{"count":3,"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1438\/revisions"}],"predecessor-version":[{"id":1442,"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1438\/revisions\/1442"}],"wp:attachment":[{"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=1438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=1438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.recruitment-connection.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=1438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}