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Employers – Are you ready for the April 2020 employment law changes?

April 2020 employment law changes

From 6 April 2020 a number of employment law changes will be introduced.

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Director, KPMG Law

KPMG in the UK

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As part of the Good Work Plan and the government’s response to the Taylor Review of Modern Working Practices, a number of changes to employment legislation will take effect from April 2020. Below is a summary of the key changes employers need to consider.

What’s changing from April 2020?

Section 1 Statements

A section 1 statement is a written statement of the particulars of work contained in a single document that should be given to employees if their employment will continue for more than one month.
From 6 April 2020, employers are required to give these statements to both employees and workers before the commencement of work, irrespective of the length of the engagement.

The information contained in this statement will be extended to include information such as the days of the week the worker is required to work, any training, probationary period and other benefits.

Further details of what is required to be included in the statement can be found in our article - Changes to Section 1 Statements.

Key Information Document for agency workers

From 6 April 2020, before agreeing the terms of work, agency workers must be provided with a Key Information Document detailing the contract type, expected rate of pay, method of pay and holiday entitlement.

Further details of what is required to be included in the Key Information Document can be found in our article Agencies – Have you prepared Key Information Documents ready for April 2020?

Swedish Derogation

The ‘Swedish derogation’, frequently used in accordance with the Agency Workers Regulations 2010, is being removed as of 6 April 2020.

Currently, this provides an exception to the requirement to provide pay parity between agency workers and direct employees if certain conditions are met.

For more information about what employers need to do to comply with this change, please see our article Employers – Are you relying on the Swedish Derogation?

Calculating holiday entitlement and pay

Holiday entitlement should be calculated by reference to the number of weeks the individual is engaged rather than as a percentage of the hours worked.

Employers currently using the 12.07% figure to calculate holiday entitlement for their irregular workers should be aware that this approach is not prescribed by the Working Time Regulations 1998, and following a recent Court of Appeal case, is no longer included in the BEIS guidance.

In response to the Good Work Plan, from 6 April 2020, the reference period for calculating holiday pay for workers with no regular working hours will be extended to 52 weeks.

For details on the steps employers should take in order to comply with these new requirements, please see our article - Are you ready for the changes to holiday pay due in April 2020?

Information and Consultation:

Changes will be made to the required threshold for making an information and consultation request – see our article - Improving information and consultation – April 2020 changes.

How can KPMG help?

KPMG advises on all aspects of employment law and provide a range of services in a practical and commercial manner. For further advice on the April 2020 changes, contact Donna Sharp, Director and Solicitor, Employment Legal Services at KPMG in the UK or email employersclub@kpmg.co.uk.

© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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